Genscript Biotech Corporation (HKG:1548), might not be a large cap stock, but it saw significant share price movement during recent months on the SEHK, rising to highs of HK$17.28 and falling to the lows of HK$10.44. 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 Genscript Biotech's current trading price of HK$11.02 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Genscript Biotech's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What Is Genscript Biotech Worth?

Good news, investors! Genscript Biotech is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is HK$14.02, but it is currently trading at HK$11.02 on the share market, meaning that there is still an opportunity to buy now. However, given that Genscript Biotech'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 Genscript Biotech?

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. However, with a negative profit growth of -7.7% expected next year, near-term growth certainly doesn't appear to be a driver for a buy decision for Genscript Biotech. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although 1548 is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to 1548, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you've been keeping tabs on 1548 for some time, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. At Simply Wall St, we found 1 warning sign for Genscript Biotech and we think they deserve your attention.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.