Seanergy Maritime Holdings Corp (NASDAQ:SHIP), a shipping company based in Greece, saw significant share price volatility over the past couple of months on the NasdaqCM, rising to the highs of $1.11 and falling to the lows of $1. 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 Seanergy Maritime Holdings’s current trading price of $1.05 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 Seanergy Maritime Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Seanergy Maritime Holdings
What is Seanergy Maritime Holdings worth?
The stock seems fairly valued at the moment according to my relative valuation model. In this instance, I’ve used the price-to-book (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that Seanergy Maritime Holdings’s ratio of 0.94x is trading slightly above its industry peers’ ratio of 0.89x, which means if you buy Seanergy Maritime Holdings today, you’d be paying a relatively fair price for it. And if you believe Seanergy Maritime Holdings should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, it seems like Seanergy Maritime Holdings’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Seanergy Maritime Holdings?
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 revenue growth of 9.88% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Seanergy Maritime Holdings, at least in the short term.
What this means for you:
Are you a shareholder? SHIP’s 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 SHIP? 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 SHIP, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive growth outlook may mean 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 Seanergy Maritime Holdings. You can find everything you need to know about Seanergy Maritime Holdings in the latest infographic research report. If you are no longer interested in Seanergy Maritime 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.