Canmax Technologies Co., Ltd. (SZSE:300390), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the SZSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a CN¥18b market-cap stock, it seems odd Canmax Technologies is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let's take a look at Canmax Technologies's outlook and value based on the most recent financial data to see if the opportunity still exists.

Is Canmax Technologies Still Cheap?

According to our valuation model, Canmax Technologies seems to be fairly priced at around 14% below our intrinsic value, which means if you buy Canmax Technologies today, you'd be paying a reasonable price for it. And if you believe the company's true value is CN¥24.53, then there isn't much room for the share price grow beyond what it's currently trading. What's more, Canmax Technologies's share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Canmax Technologies look like?

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. Though in the case of Canmax Technologies, it is expected to deliver a highly negative earnings growth in the next few years, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Currently, 300390 appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you've been keeping an eye on 300390 for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there's less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven't considered today, which can help gel your views on 300390 should the price fluctuate below its true value.

If you'd like to know more about Canmax Technologies as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 4 warning signs for Canmax Technologies (of which 2 shouldn't be ignored!) you should know about.

If you are no longer interested in Canmax Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.