Is It Too Late To Consider Buying Minerals Technologies Inc. (NYSE:MTX)?

By
Simply Wall St
Published
May 18, 2022
NYSE:MTX
Source: Shutterstock

Minerals Technologies Inc. (NYSE:MTX), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NYSE over the last few months. 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? Let’s examine Minerals Technologies’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Minerals Technologies

What's the opportunity in Minerals Technologies?

Great news for investors – Minerals Technologies is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $110.56, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Minerals Technologies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Minerals Technologies?

earnings-and-revenue-growth
NYSE:MTX Earnings and Revenue Growth May 18th 2022

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Minerals Technologies' earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since MTX is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MTX for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MTX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that Minerals Technologies has 1 warning sign and it would be unwise to ignore it.

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

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