What Is Detection Technology Oyj's (HEL:DETEC) Share Price Doing?
Detection Technology Oyj (HEL:DETEC), which is in the electronic business, and is based in Finland, saw a decent share price growth in the teens level on the HLSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Detection Technology Oyj’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Detection Technology Oyj
What's the opportunity in Detection Technology Oyj?
According to my valuation model, Detection Technology Oyj seems to be fairly priced at around 14% below my intrinsic value, which means if you buy Detection Technology Oyj today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €21.23, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Detection Technology Oyj’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Detection Technology Oyj?
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 grow by 49% over the next couple of years, the future seems bright for Detection Technology Oyj. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? DETEC’s optimistic future growth appears to have been factored into the current share price, 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 conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on DETEC, 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 Detection Technology Oyj. You can find everything you need to know about Detection Technology Oyj in the latest infographic research report. If you are no longer interested in Detection Technology Oyj, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
