CJ Century Logistics Holdings Berhad (KLSE:CJCEN), is not the largest company out there, but it saw significant share price movement during recent months on the KLSE, rising to highs of RM0.46 and falling to the lows of RM0.39. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether CJ Century Logistics Holdings Berhad's current trading price of RM0.40 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 CJ Century Logistics Holdings Berhad’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 CJ Century Logistics Holdings Berhad
What Is CJ Century Logistics Holdings Berhad Worth?
The share price seems sensible at the moment according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that CJ Century Logistics Holdings Berhad’s ratio of 11.99x is trading in-line with its industry peers’ ratio, which means if you buy CJ Century Logistics Holdings Berhad today, you’d be paying a relatively sensible price for it. Furthermore, it seems like CJ Century Logistics Holdings Berhad’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s priced similarly to industry peers. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will CJ Century Logistics Holdings Berhad generate?
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. CJ Century Logistics Holdings Berhad's earnings over the next few years are expected to increase by 50%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? CJCEN’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at CJCEN? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?