Etn Fr. Colruyt NV (ENXTBR:COLR), a consumer retailing company based in Belgium, maintained its current share price over the past couple of month on the ENXTBR, with a relatively tight range of €42.82 to €45.53. However, does this price actually reflect the true value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Etn. Fr. Colruyt’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Etn. Fr. Colruyt
What is Etn. Fr. Colruyt worth?
The stock is currently trading at €45.50 on the share market, which means it is overvalued by 89% compared to my intrinsic value of €24.05. This means that the buying opportunity has probably disappeared for now. Another thing to keep in mind is that Etn. Fr. Colruyt’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What kind of growth will Etn. Fr. Colruyt generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 Etn. Fr. Colruyt, it is expected to deliver a negative earnings growth of -1.92%, 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? If you believe COLR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to de-risk your portfolio. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on COLR for a while, now may not be the best time to enter into the stock. Price climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Etn. Fr. Colruyt. You can find everything you need to know about Etn. Fr. Colruyt in the latest infographic research report. If you are no longer interested in Etn. Fr. Colruyt, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.