Kemira Oyj (HEL:KEMIRA), which is in the chemicals business, and is based in Finland, received a lot of attention from a substantial price increase on the HLSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Kemira Oyj’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Kemira Oyj

What is Kemira Oyj worth?

Great news for investors – Kemira Oyj is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €16.45, but it is currently trading at €10.99 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Kemira Oyj’s share price is theoretically 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.

What kind of growth will Kemira Oyj 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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 21% over the next couple of years, the future seems bright for Kemira Oyj. 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 KEMIRA is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 KEMIRA for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KEMIRA. 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 buy.