Haulotte Group SA (EPA:PIG), which is in the machinery business, and is based in France, saw significant share price movement during recent months on the ENXTPA, rising to highs of €5.53 and falling to the lows of €4.50. 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 Haulotte Group's current trading price of €4.51 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 Haulotte Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Haulotte Group worth?
Good news, investors! Haulotte Group is still a bargain right now. 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 5.78x is currently well-below the industry average of 11.94x, meaning that it is trading at a cheaper price relative to its peers. However, given that Haulotte Group’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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Haulotte Group?
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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Haulotte Group, at least in the near future.
What this means for you:
Are you a shareholder? Although PIG is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to PIG, 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 tabs on PIG for some time, but hesitant on making the leap, I recommend you dig deeper 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Haulotte Group. You can find everything you need to know about Haulotte Group in the latest infographic research report. If you are no longer interested in Haulotte Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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