Should you investigate OC Oerlikon Corporation AG (VTX: OERL) at CHF9.65?
While OC Oerlikon Corporation AG (VTX: OERL) may not be the most well-known stock right now, it has seen a significant move in stock prices in recent months on SWX, reaching highs of 10.94 CHF and falling to a low of 9 CHF. 30. Certain movements in stock prices can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to answer is whether OC Oerlikon’s current price of CHF 9.65 reflects the true value of the mid-cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of OC Oerlikon based on the most recent financial data to see if there are any catalysts for a price change.
See our latest review for OC Oerlikon
What is the opportunity at OC Oerlikon?
Good news, investors! OC Oerlikon is still a good deal at the moment under my multiple pricing model, which compares the company’s price / earnings ratio to the industry average. In this case, I used the price-to-earnings (PE) ratio since there isn’t enough information to reliably forecast the stock’s cash flow. I find OC Oerlikon’s 22.95x ratio to be lower than its peers average of 28.43x, indicating that the stock is trading below the machinery industry. However, there may be another chance to buy again in the future. This is because OC Oerlikon’s beta (a measure of stock price volatility) is high, which means its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall more than the rest of the market, providing a prime buying opportunity.
What does the future of OC Oerlikon look like?
Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s take a look at the future expectations of the business as well. OC Oerlikon’s profits over the next few years are expected to increase by 33%, indicating a very optimistic future. This should lead to more robust cash flow, fueling a higher value of the stock.
What this means for you:
Are you a shareholder? Since OERL is currently below the industry PE ratio, perhaps now is a great time to increase your holdings of stocks. With a positive outlook on the horizon, it seems that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to take into account, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping an eye on OERL for a while, now might be the time to take a leap. Its prospects for prosperous future earnings are not yet fully reflected in the current share price, which means it is not too late to buy OERL. But before making any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Since timing is quite important when it comes to selecting individual stocks, it’s worth taking a look at the latest analyst forecasts. So feel free to check out our free chart representing analysts’ forecasts.
If you are no longer interested in OC Oerlikon, you can use our free platform to view our list of over 50 other stocks with high growth potential.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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