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Fugro N.V. (AMS:FUR), might not be a large cap stock, but it saw significant share price movement during recent months on the ENXTAM, rising to highs of €25.16 and falling to the lows of €19.77. 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 Fugro's current trading price of €20.94 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Fugro’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 Fugro
Is Fugro Still Cheap?
Great news for investors – Fugro 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 Fugro’s ratio of 7.96x is below its peer average of 13.55x, which indicates the stock is trading at a lower price compared to the Construction industry. Fugro’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Fugro 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. However, with a relatively muted profit growth of 5.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Fugro, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since FUR is currently trading below the industry PE ratio, 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 price multiple.
Are you a potential investor? If you’ve been keeping an eye on FUR for a while, now might be the time to enter the stock. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FUR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed assessment.