KAZ Minerals plc (LSE:KAZ), a metals and mining company based in United Kingdom, received a lot of attention from a substantial price increase on the LSE in the over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at KAZ’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for KAZ Minerals
What’s the opportunity in KAZ?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 2% below my intrinsic value, which means if you buy KAZ today, you’d be paying a fair price for it. And if you believe KAZ’s true value is £8.47, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since KAZ’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 KAZ moves relative to the rest of the market.
What does the future of KAZ 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 KAZ future expectations. KAZ’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? KAZ’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 track record of its management team. Have these factors changed since the last time you looked at KAZ? 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 KAZ, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for KAZ, which means it’s worth further examining 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 KAZ Minerals. You can find everything you need to know about KAZ in the latest infographic research report. If you are no longer interested in KAZ Minerals, 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.