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Is It The Right Time To Buy Papa Murphy’s Holdings Inc (NASDAQ:FRSH)?

Papa Murphy’s Holdings Inc (NASDAQ:FRSH), a hospitality company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Papa Murphy’s Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Papa Murphy’s Holdings

Is Papa Murphy’s Holdings still cheap?

Great news for investors – Papa Murphy’s Holdings is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $12.13, but it is currently trading at US$5.09 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Papa Murphy’s Holdings’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Papa Murphy’s Holdings generate?

NasdaqGS:FRSH Future Profit June 26th 18
NasdaqGS:FRSH Future Profit June 26th 18

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 0.16% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Papa Murphy’s Holdings, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since FRSH is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 FRSH for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FRSH. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, 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 Papa Murphy’s Holdings. You can find everything you need to know about Papa Murphy’s Holdings in the latest infographic research report. If you are no longer interested in Papa Murphy’s Holdings, 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.

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