Advertisement
U.S. markets closed
  • S&P 500

    5,088.80
    +1.77 (+0.03%)
     
  • Dow 30

    39,131.53
    +62.43 (+0.16%)
     
  • Nasdaq

    15,996.82
    -44.78 (-0.28%)
     
  • Russell 2000

    2,016.69
    +2.85 (+0.14%)
     
  • Crude Oil

    76.57
    +0.08 (+0.10%)
     
  • Gold

    2,045.80
    -3.60 (-0.18%)
     
  • Silver

    22.98
    -0.01 (-0.03%)
     
  • EUR/USD

    1.0825
    -0.0002 (-0.02%)
     
  • 10-Yr Bond

    4.2600
    -0.0670 (-1.55%)
     
  • GBP/USD

    1.2673
    +0.0015 (+0.12%)
     
  • USD/JPY

    150.4460
    -0.0540 (-0.04%)
     
  • Bitcoin USD

    51,855.99
    +263.16 (+0.51%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,706.28
    +21.79 (+0.28%)
     
  • Nikkei 225

    39,098.68
    +836.48 (+2.19%)
     

Is Atlas Engineered Products Ltd. (CVE:AEP) Potentially Undervalued?

While Atlas Engineered Products Ltd. (CVE:AEP) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the TSXV, rising to highs of CA$1.36 and falling to the lows of CA$0.99. 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 Atlas Engineered Products' current trading price of CA$1.07 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 Atlas Engineered Products’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 Atlas Engineered Products

What Is Atlas Engineered Products Worth?

Great news for investors – Atlas Engineered Products is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CA$1.34, but it is currently trading at CA$1.07 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Atlas Engineered Products’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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.

What does the future of Atlas Engineered Products look like?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. Though in the case of Atlas Engineered Products, it is expected to deliver a negative revenue growth of -11% next year, 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? Although AEP is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to AEP, 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 an eye on AEP for a while, but hesitant on making the leap, I 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.

If you'd like to know more about Atlas Engineered Products as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Atlas Engineered Products has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in Atlas Engineered Products, 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.

Advertisement