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Irish Continental Group plc (LON:ICGC), might not be a large cap stock, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£4.88 and falling to the lows of UK£4.36. 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 Irish Continental Group's current trading price of UK£4.55 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Irish Continental Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Irish Continental Group
What's The Opportunity In Irish Continental Group?
According to our valuation model, Irish Continental Group seems to be fairly priced at around 17% below our intrinsic value, which means if you buy Irish Continental Group today, you’d be paying a fair price for it. And if you believe the company’s true value is £5.51, then there’s not much of an upside to gain from mispricing. In addition to this, Irish Continental Group has a low beta, which suggests its share price is less volatile than the wider market.
What does the future of Irish Continental Group look like?
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. Irish Continental Group's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? It seems like the market has already priced in ICGC’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on ICGC, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.