Catering International & Services Société Anonyme (EPA:CTRG), which is in the commercial services business, and is based in France, received a lot of attention from a substantial price movement on the ENXTPA over the last few months, increasing to €12.55 at one point, and dropping to the lows of €10.90. 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 Catering International & Services Société Anonyme's current trading price of €11.20 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 Catering International & Services Société Anonyme’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 Catering International & Services Société Anonyme
What's the opportunity in Catering International & Services Société Anonyme?
The stock seems fairly valued at the moment according to my relative valuation model. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Catering International & Services Société Anonyme’s ratio of 18.04x is trading slightly above its industry peers’ ratio of 16.26x, which means if you buy Catering International & Services Société Anonyme today, you’d be paying a relatively reasonable price for it. And if you believe that Catering International & Services Société Anonyme should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Catering International & Services Société Anonyme’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Catering International & Services Société Anonyme 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. With profit expected to grow by 52% over the next couple of years, the future seems bright for Catering International & Services Société Anonyme. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.