In This Article:
Uzin Utz SE (ETR:UZU), might not be a large cap stock, but it had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of €46.80 to €50.50. However, is this the true valuation level of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Uzin Utz’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Uzin Utz
Is Uzin Utz Still Cheap?
Good news, investors! Uzin Utz is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We’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 10.28x is currently well-below the industry average of 22.56x, meaning that it is trading at a cheaper price relative to its peers. However, given that Uzin Utz’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Uzin Utz?
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 profit growth of 3.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Uzin Utz, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since UZU is currently trading below the industry PE ratio, it may be a great time to increase 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 UZU for a while, now might be the time to make a leap. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy UZU. 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 assessment.
Diving deeper into the forecasts for Uzin Utz mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.