Yahoo Finance Is It The Right Time To Buy Schweiter Technologies AG (VTX:SWTQ)?
Schweiter Technologies AG (SWX:SWTQ), a building company based in Switzerland, received a lot of attention from a substantial price movement on the SWX over the last few months, increasing to CHF1230 at one point, and dropping to the lows of CHF1102. 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 Schweiter Technologies’s current trading price of CHF1126 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 Schweiter Technologies’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 Schweiter Technologies
What’s the opportunity in Schweiter Technologies?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 16% above my intrinsic value, which means if you buy Schweiter Technologies today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is CHF972.81, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, it seems like Schweiter Technologies’s share price is quite stable, which means 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 Schweiter Technologies?
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. Schweiter Technologies’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has already priced in SWTQ’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 tabs on SWTQ, now may not be the most optimal 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 Schweiter Technologies. You can find everything you need to know about Schweiter Technologies in the latest infographic research report. If you are no longer interested in Schweiter Technologies, 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.
