Why MSA Safety Incorporated (NYSE:MSA) Could Be Worth Watching
MSA Safety Incorporated (NYSE:MSA), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading around its 52-week high. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at MSA Safety’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for MSA Safety
What's The Opportunity In MSA Safety?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 8.40% above our intrinsic value, which means if you buy MSA Safety today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $168.85, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, MSA Safety has a low beta, which suggests its share price is less volatile than the wider market.
What kind of growth will MSA Safety generate?
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 over the next couple of years, the future seems bright for MSA Safety. 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? It seems like the market has already priced in MSA’s positive outlook, 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 the stock? 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 MSA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.
So while earnings quality is important, it's equally important to consider the risks facing MSA Safety at this point in time. For instance, we've identified 3 warning signs for MSA Safety (1 shouldn't be ignored) you should be familiar with.
If you are no longer interested in MSA Safety, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
