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Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA), might not be a large cap stock, but it maintained its current share price over the past couple of month on the XTRA, with a relatively tight range of €16.70 to €18.24. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hamburger Hafen und Logistik’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Hamburger Hafen und Logistik
What Is Hamburger Hafen und Logistik Worth?
Hamburger Hafen und Logistik appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Hamburger Hafen und Logistik’s ratio of 78.34x is above its peer average of 14.1x, which suggests the stock is trading at a higher price compared to the Infrastructure industry. But, is there another opportunity to buy low in the future? Given that Hamburger Hafen und Logistik’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 does the future of Hamburger Hafen und Logistik look like?
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. With profit expected to more than double in the upcoming, the future appears to be extremely bright for Hamburger Hafen und Logistik. 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? HHFA’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe HHFA should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.