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Is It Time To Consider Buying Guangdong Create Century Intelligent Equipment Group Corporation Limited (SZSE:300083)?

Simply Wall St ·  May 3, 2022 01:01

Guangdong Create Century Intelligent Equipment Group Corporation Limited (SZSE:300083), is not the largest company out there, but it saw a decent share price growth in the teens level on the SZSE over the last few months. As a CN¥15b market cap stock, it seems odd Guangdong Create Century Intelligent Equipment Group is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Let's examine Guangdong Create Century Intelligent Equipment Group's valuation and outlook in more detail to determine if there's still a bargain opportunity.

View our latest analysis for Guangdong Create Century Intelligent Equipment Group

What is Guangdong Create Century Intelligent Equipment Group worth?

According to my valuation model, Guangdong Create Century Intelligent Equipment Group seems to be fairly priced at around 9.92% above my intrinsic value, which means if you buy Guangdong Create Century Intelligent Equipment Group today, you'd be paying a relatively fair price for it. And if you believe the company's true value is CN¥8.63, then there isn't really any room for the share price grow beyond what it's currently trading. Is there another opportunity to buy low in the future? Since Guangdong Create Century Intelligent Equipment Group's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 Guangdong Create Century Intelligent Equipment Group?

SZSE:300083 Earnings and Revenue Growth May 3rd 2022

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. With profit expected to more than double over the next couple of years, the future seems bright for Guangdong Create Century Intelligent Equipment Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? 300083's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you've been keeping tabs on 300083, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Guangdong Create Century Intelligent Equipment Group.

If you are no longer interested in Guangdong Create Century Intelligent Equipment Group, 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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