At € 4.58, is Cellularline SpA (BIT: CELL) worth a close look?
While Cellularline SpA (BIT: CELL) may not be the best-known stock at the moment, it had a relatively moderate period of a few weeks in terms of changes in the share price, which continued to grow. float around 4.35 € to 4.67 €. However, is this the true level of valuation of small caps? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of Cellularline based on the most recent financial data to see if there are any catalysts for a price change.
See our latest review for Cellularline
What is Cellularline worth?
Great news for investors – Cellularline is still trading fairly cheaply under my multiple pricing model, where I compare 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 Cellularline’s ratio of 6.66x to be lower than its 25.3x average, indicating that the stock is trading at a lower price relative to the tech industry. However, given that Cellularline’s stock is quite volatile (i.e. its price movements are amplified relative to the rest of the market), this could mean that the price may go lower, giving us a another chance to buy in the future. This is based on its high beta, which is a good indicator of stock price volatility.
What type of growth will Cellularline generate?
Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a large company with a solid outlook for a cheap price is always a good investment, so let’s take a look at the company’s future expectations as well. However, with relatively moderate earnings growth of 0.7% expected over the next two years, growth does not appear to be a key driver for a decision to buy Cellularline, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively subdued, since CELL is currently trading below the industry PE ratio, it may be a good time to increase your holdings of stocks. However, there are also other factors to take into account, such as the capital structure, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping your eye on CELL for a while, it might be time to get into the stock. Its future earnings outlook is not yet fully reflected in the current share price, which means it is not too late to buy CELL. But before making any investment decisions, consider other factors such as the strength of your balance sheet, in order to make an informed investment decision.
So, if you want to dig deeper into this stock, it is essential to take into account the risks it faces. You would be interested to know that we have found 1 warning sign for Cellularline and you’ll want to know it.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim 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 information. Simply Wall St has no position in any of the stocks mentioned.
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