Should You Buy Hanmi Financial Corporation (NASDAQ:HAFC) At $30.85?
Hanmi Financial Corporation (NASDAQ:HAFC), operating in the financial services industry based in United States, maintained its current share price over the past couple of month on the NasdaqGS, with a relatively tight range of $29.7 to $32.2. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hanmi Financial’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 Hanmi Financial
Is Hanmi Financial still cheap?
According to my valuation model, Hanmi Financial seems to be fairly priced at around 13% above my intrinsic value, which means if you buy Hanmi Financial today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $27.41, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Hanmi Financial’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
What does the future of Hanmi Financial look like?
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. With profit expected to grow by 52.93% over the next couple of years, the future seems bright for Hanmi Financial. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has already priced in HAFC’s positive outlook, 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 confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on HAFC, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hanmi Financial. You can find everything you need to know about Hanmi Financial in the latest infographic research report. If you are no longer interested in Hanmi Financial, 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.
