While Muhibbah Engineering (M) Bhd. (KLSE:MUHIBAH) might not have the largest market cap around , it saw significant share price movement during recent months on the KLSE, rising to highs of RM0.82 and falling to the lows of RM0.61. 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 Muhibbah Engineering (M) Bhd's current trading price of RM0.66 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 Muhibbah Engineering (M) Bhd’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's The Opportunity In Muhibbah Engineering (M) Bhd?
Great news for investors – Muhibbah Engineering (M) Bhd is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Muhibbah Engineering (M) Bhd’s ratio of 6.55x is below its peer average of 15x, which indicates the stock is trading at a lower price compared to the Construction industry. What’s more interesting is that, Muhibbah Engineering (M) Bhd’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.
View our latest analysis for Muhibbah Engineering (M) Bhd
What kind of growth will Muhibbah Engineering (M) Bhd 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. Though in the case of Muhibbah Engineering (M) Bhd, it is expected to deliver a relatively unexciting earnings growth of 1.6%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.