Intelsat SA (NYSE:I), a diversified telecommunication services company based in Luxembourg, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $7.35 and falling to the lows of $3.47. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether I’s current trading price of $3.47 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at I’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Intelsat S.A
Is I still cheap?Good news, investors! I is still a bargain right now. According to my valuation, the intrinsic value for the stock is $72.19, but it is currently trading at $3.47 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, I’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 I moves relative to the rest of the market.
What does the future of I look like?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 I future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for I, at least in the near future.
What this means for you:
Are you a shareholder? Although I is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to I, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping an eye on I for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Intelsat S.A. You can find everything you need to know about I in the latest infographic research report. If you are no longer interested in Intelsat S.A, you can use our free platform to see my list of over 50 other stocks with a high growth potential.