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While RHI Magnesita N.V. (LON:RHIM) might not have the largest market cap around , it saw a significant share price rise of 34% in the past couple of months on the LSE. The company is now trading at yearly-high levels following the recent surge in its share price. As a mid-cap stock with high coverage 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 take a look at RHI Magnesita’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for RHI Magnesita
What's The Opportunity In RHI Magnesita?
Great news for investors – RHI Magnesita is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is £52.79, but it is currently trading at UK£35.50 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, RHI Magnesita’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 RHI Magnesita?
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. With profit expected to grow by 78% over the next couple of years, the future seems bright for RHI Magnesita. 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 RHIM is currently undervalued, it may be a great time to increase 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on RHIM 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 RHIM. 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.