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Thrace Plastics Holding and Commercial S.A. (ATH:PLAT), which is in the chemicals business, and is based in Greece, saw a decent share price growth in the teens level on the ATSE 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 examine Thrace Plastics Holding and Commercial’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Thrace Plastics Holding and Commercial
What's the opportunity in Thrace Plastics Holding and Commercial?
Great news for investors – Thrace Plastics Holding and Commercial is still trading at a fairly cheap price. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 12.06x is currently well-below the industry average of 17.57x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Thrace Plastics Holding and Commercial’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Thrace Plastics Holding and Commercial?
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. However, with a relatively muted revenue growth of 3.1% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for Thrace Plastics Holding and Commercial.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since PLAT is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 PLAT for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PLAT. 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.