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Michelmersh Brick Holdings plc (LON:MBH), might not be a large cap stock, but it saw significant share price movement during recent months on the AIM, rising to highs of UK£1.06 and falling to the lows of UK£0.94. 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 Michelmersh Brick Holdings' current trading price of UK£0.94 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 Michelmersh Brick Holdings’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 Michelmersh Brick Holdings
What's The Opportunity In Michelmersh Brick Holdings?
Great news for investors – Michelmersh Brick Holdings is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is £1.39, but it is currently trading at UK£0.94 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Michelmersh Brick Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Michelmersh Brick Holdings?
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. Though in the case of Michelmersh Brick Holdings, it is expected to deliver a relatively unexciting earnings growth of 9.2%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since MBH is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 MBH for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MBH. 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 buy.