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At US$14.73, Is Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) Worth Looking At Closely?

Simply Wall St

Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI), which is in the trade distributors business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $16.31 and falling to the lows of $14.61. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Fortress Transportation and Infrastructure Investors's current trading price of $14.73 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 Fortress Transportation and Infrastructure Investors’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 Fortress Transportation and Infrastructure Investors

What's the opportunity in Fortress Transportation and Infrastructure Investors?

According to my valuation model, Fortress Transportation and Infrastructure Investors seems to be fairly priced at around 10% below my intrinsic value, which means if you buy Fortress Transportation and Infrastructure Investors today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $16.42, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Fortress Transportation and Infrastructure Investors’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Fortress Transportation and Infrastructure Investors?

NYSE:FTAI Past and Future Earnings, August 15th 2019

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 more than double in the upcoming, the future appears to be extremely bright for Fortress Transportation and Infrastructure Investors. 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? FTAI’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on FTAI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect 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 Fortress Transportation and Infrastructure Investors. You can find everything you need to know about Fortress Transportation and Infrastructure Investors in the latest infographic research report. If you are no longer interested in Fortress Transportation and Infrastructure Investors, 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.