Landmark Infrastructure Partners LP (NASDAQ:LMRK), a real estate company based in United States, received a lot of attention from a substantial price movement on the NasdaqGM in the over the last few months, increasing to $18.75 at one point, and dropping to the lows of $16.45. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Landmark Infrastructure Partners’s current trading price of $17.05 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 Landmark Infrastructure Partners’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’s the opportunity in Landmark Infrastructure Partners?
Landmark Infrastructure Partners is currently overpriced based on my relative valuation model. I’ve used the price-to-equity ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 32.19x is currently well-above the industry average of 10.95x, meaning that it is trading at a more expensive price relative to its peers. Another thing to keep in mind is that Landmark Infrastructure Partners’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 Landmark Infrastructure Partners look like?
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. With profit expected to more than double over the next couple of years, the future seems bright for Landmark Infrastructure Partners. 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 well and truly priced in LMRK’s positive outlook, 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 industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook 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 Landmark Infrastructure Partners 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.