Is It Time To Consider Buying Terminix Global Holdings, Inc. (NYSE:TMX)?

While Terminix Global Holdings, Inc. (NYSE:TMX) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Terminix Global Holdings’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Terminix Global Holdings

What is Terminix Global Holdings worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.8% below my intrinsic value, which means if you buy Terminix Global Holdings today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $52.99, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Terminix Global Holdings’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Terminix Global Holdings look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Terminix Global Holdings' 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? TMX’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 an eye on TMX, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Terminix Global Holdings, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 3 warning signs for Terminix Global Holdings (of which 1 is potentially serious!) you should know about.

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

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This article by Simply Wall St is general in nature. 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.
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