Is It Too Late To Consider Buying MSA Safety Incorporated (NYSE:MSA)?

MSA Safety Incorporated (NYSE:MSA), is not the largest company out there, but it saw a decent share price growth of 12% on the NYSE over the last few months. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Today we will analyse the most recent data on MSA Safety’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for MSA Safety

What Is MSA Safety Worth?

According to our valuation model, MSA Safety seems to be fairly priced at around 6.34% above our intrinsic value, which means if you buy MSA Safety today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $168.99, there’s only an insignificant downside when the price falls to its real value. What's more, MSA Safety’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from MSA Safety?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. MSA Safety's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? MSA’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on MSA, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Our analysis shows 3 warning signs for MSA Safety (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

If you are no longer interested in MSA Safety, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.