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Is Now The Time To Look At Buying Intertape Polymer Group Inc. (TSE:ITP)?

Simply Wall St

Intertape Polymer Group Inc. (TSE:ITP), which is in the packaging business, and is based in Canada, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of CA$17.73 to CA$19.16. However, is this the true valuation level of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Intertape Polymer Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Intertape Polymer Group

What is Intertape Polymer Group worth?

Great news for investors – Intertape Polymer Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is CA$32.17, but it is currently trading at CA$17.90 on the share market, meaning that there is still an opportunity to buy now. Intertape Polymer Group’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from Intertape Polymer Group?

TSX:ITP Past and Future Earnings, September 5th 2019

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 the company's future expectations. In the upcoming year, Intertape Polymer Group’s earnings are expected to increase by 46%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since ITP is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ITP for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ITP. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Intertape Polymer Group. You can find everything you need to know about Intertape Polymer Group in the latest infographic research report. If you are no longer interested in Intertape Polymer Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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.

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. Thank you for reading.