Reno De Medici S.p.A. (BIT:RM), which is in the packaging business, and is based in Italy, saw a decent share price growth in the teens level on the BIT over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Reno De Medici’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Reno De Medici
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
What’s the opportunity in Reno De Medici?
Great news for investors – Reno De Medici is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €0.94, 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, Reno De Medici’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.
What kind of growth will Reno De Medici generate?
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 the company’s future expectations. With profit expected to grow by 33% over the next couple of years, the future seems bright for Reno De Medici. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since RM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on RM 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 RM. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.