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Speedy Hire Plc (LON:SDY), is not the largest company out there, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£0.38 and falling to the lows of UK£0.27. 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 Speedy Hire's current trading price of UK£0.27 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 Speedy Hire’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 Speedy Hire
What's The Opportunity In Speedy Hire?
Good news, investors! Speedy Hire is still a bargain right now. According to our valuation, the intrinsic value for the stock is £0.43, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Speedy Hire’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 Speedy Hire?
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. In Speedy Hire's case, its revenues over the next few years are expected to grow by 36%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since SDY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on SDY for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SDY. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.