Mobile Mini, Inc. (NASDAQ:MINI), which is in the commercial services business, and is based in United States, saw significant share price movement during recent months on the NasdaqGS, rising to highs of $44 and falling to the lows of $30.15. 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 Mobile Mini’s current trading price of $32.43 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 Mobile Mini’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 Mobile Mini
What’s the opportunity in Mobile Mini?
Great news for investors – Mobile Mini is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $48.24, but it is currently trading at US$32.43 on the share market, meaning that there is still an opportunity to buy now. However, given that Mobile Mini’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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Mobile Mini generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Mobile Mini’s earnings over the next few years are expected to increase by 39%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since MINI is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MINI for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MINI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.