Landmark Infrastructure Partners LP (NASDAQ:LMRK), a real estate management and development company based in United States, saw its share price hover around a small range of $16.5 to $17.95 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at LMRK’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 Landmark Infrastructure Partners
What is LMRK worth?
The stock is currently trading at $17.1 on the share market, which means it is overvalued by 23% compared to my intrinsic value of $13.88. Not the best news for investors looking to buy! Another thing to keep in mind is that LMRK’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 does the future of LMRK 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 LMRK future expectations. With profit expected to more than double over the next couple of years, the future seems bright for LMRK. 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? LMRK’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe LMRK 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. 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 LMRK for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for LMRK, which means it’s worth diving deeper into other factors 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 Landmark Infrastructure Partners. You can find everything you need to know about LMRK in the latest infographic research report. If you are no longer interested in Landmark Infrastructure Partners, 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.