M.D.C. Holdings, Inc. (NYSE:MDC), might not be a large cap stock, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$37.30 and falling to the lows of US$28.26. 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 M.D.C. Holdings' current trading price of US$29.38 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 M.D.C. Holdings's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for M.D.C. Holdings
What Is M.D.C. Holdings Worth?
According to my price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. I'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 3.25x is currently trading slightly below its industry peers' ratio of 7.04x, which means if you buy M.D.C. Holdings today, you'd be paying a decent price for it. And if you believe M.D.C. Holdings should be trading in this range, then there isn't much room for the share price to grow beyond the levels of other industry peers over the long-term. So, is there another chance to buy low in the future? Given that M.D.C. Holdings'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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of M.D.C. Holdings look like?
NYSE:MDC Earnings and Revenue Growth September 19th 2022
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 -17% expected over the next couple of years, near-term growth certainly doesn't appear to be a driver for a buy decision for M.D.C. Holdings. This certainty tips the risk-return scale towards higher risk.
What This Means For You
Are you a shareholder? Currently, MDC appears to be trading around industry price multiples, 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 MDC, take a look at whether its fundamentals have changed.
Are you a potential investor? If you've been keeping tabs on MDC for a while, now may not be the most advantageous time to buy, given it is trading around industry price multiples. This means there's less benefit from mispricing. In addition to this, 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 MDC should the price fluctuate below the industry PE ratio.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. To that end, you should learn about the 4 warning signs we've spotted with M.D.C. Holdings (including 2 which can't be ignored).
If you are no longer interested in M.D.C. Holdings, 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.
M.D.C.Holdings,Inc.(紐約證券交易所代碼:MDC)可能不是一隻大盤股,但它在紐約證券交易所的股價在近幾個月裏出現了顯著的波動,漲至37.30美元的高點,跌至28.26美元的低點。一些股價波動可以讓投資者有更好的機會買入股票,並有可能以更低的價格買入。一個需要回答的問題是,M.D.C.Holdings目前29.38美元的交易價格是否反映了中型股的實際價值?或者,它目前被低估了,為我們提供了買入的機會?讓我們看看M.D.C.Holdings基於最新財務數據的前景和價值,看看是否有任何推動價格變化的催化劑。
查看我們對M.D.C.Holdings的最新分析
M.D.C.控股公司值多少錢?
根據我的市盈率模型,該模型將公司的市盈率與行業平均水平進行了比較,股價似乎是穩定的。我之所以在這種情況下使用市盈率,是因為沒有足夠的可見性來預測其現金流。該股目前的市盈率為3.25倍,略低於業內同行7.04倍的市盈率,這意味着如果你今天買入M.D.C.Holdings,你將支付一個相當不錯的價格。如果你認為M.D.C.Holdings的股價應該在這個範圍內交易,那麼從長遠來看,該公司股價沒有太大的增長空間,不會超過其他行業同行的水平。那麼,未來還有機會低接買入嗎?鑑於M.D.C.Holdings的股價波動相當大(即其價格走勢相對於市場其他部分被放大),這可能意味着價格可能會下跌,給我們一個稍後買入的機會。這是基於其較高的貝塔係數,這是一個很好的股價波動指標。
M.D.C.Holdings的未來是什麼樣子的?
紐約證券交易所:MDC收益和收入增長2022年9月19日
尋求投資組合增長的投資者可能希望在購買一家公司的股票之前考慮其前景。以低廉的價格收購一家前景穩健的偉大公司永遠是一筆不錯的投資,所以讓我們也來看看該公司的未來預期。然而,由於預計未來幾年利潤將出現負增長-17%,短期增長顯然不會成為M.D.C.Holdings做出收購決定的驅動因素。這種確定性將風險-收益比例推向更高的風險。
這對你意味着什麼
你是股東嗎?目前,MDC似乎在行業市盈率附近交易,但考慮到未來負回報的不確定性,現在可能是降低投資組合風險的合適時機。對於你的總投資組合來説,你目前對這隻股票的敞口是不是最好的?持有一隻前景負面的股票的機會成本是否過高?在你對MDC做出決定之前,先看看它的基本面是否發生了變化。
你是潛在的投資者嗎?如果你關注MDC已經有一段時間了,現在可能不是買入的最有利時機,因為它的交易價格在行業市盈率附近。這意味着,錯誤定價帶來的好處較少。除此之外,負增長前景增加了持有該股的風險。然而,我們今天還沒有考慮其他重要因素,如果價格波動低於行業市盈率,這些因素可以幫助你凝聚對MDC的看法。
因此,如果你想更深入地研究這隻股票,考慮它面臨的任何風險是至關重要的。為此,您應該瞭解4個警示標誌我們已經發現了M.D.C.Holdings(包括2家不容忽視的公司)。
如果您對M.D.C.Holdings不再感興趣,您可以使用我們的免費平臺查看我們的其他50多隻具有高增長潛力的股票。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。