BSA Limited (ASX:BSA), a commercial services and supplies company based in Australia, saw a double-digit share price rise of over 10% in the past couple of months on the ASX. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at BSA’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for BSA

What’s the opportunity in BSA?

Good news, investors! BSA is still a bargain right now. According to my valuation, the intrinsic value for the stock is A$0.65, but it is currently trading at A$0.38 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, BSA’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 BSA’s stock is less volatile than the wider market given its low beta.

What kind of growth will BSA 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 BSA future expectations. With profit expected to more than double over the next couple of years, the future seems bright for BSA. It looks like higher cash flows 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 BSA is currently undervalued, it may be a great time to accumulate more of 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 BSA 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 BSA. 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 investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on BSA. You can find everything you need to know about BSA in the latest infographic research report. If you are no longer interested in BSA, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.