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Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA), is not the largest company out there, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €18.66 at one point, and dropping to the lows of €16.68. 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 Hamburger Hafen und Logistik's current trading price of €17.82 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 Hamburger Hafen und Logistik’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Hamburger Hafen und Logistik
What Is Hamburger Hafen und Logistik Worth?
Hamburger Hafen und Logistik appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and 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 42.94x is currently well-above the industry average of 15.29x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Hamburger Hafen und Logistik’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.
What kind of growth will Hamburger Hafen und Logistik 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. In Hamburger Hafen und Logistik's case, its earnings over the next year are expected to double, indicating an incredibly optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? It seems like the market has well and truly priced in HHFA’s positive outlook, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe HHFA should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.