Tianli Education International Holdings Limited (HKG:1773), isn’t the biggest company in the market, but it has seen some big price moves in recent months on the SEHK, hitting highs of HK$2.12 and falling to lows of HK$0.74. Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. A question to answer is whether the current trading price of Tianli Education International Holdings of HK$0.74 reflects the true value of the small cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of Tianli Education International Holdings based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Tianli Education International Holdings
What is Tianli Education International Holdings worth?
Good news for investors – Tianli Education International Holdings is still trading at a fairly cheap price according to my multiple price model, where I compare the company’s price-earnings ratio to the industry average. I used the price/earnings ratio in this case because there is not enough visibility to predict its cash flow. The stock’s ratio of 2.95x is currently well below the industry average of 9.04x, meaning it is trading at a lower price than its peers. However, since Tianli Education International Holdings’ share is quite volatile (i.e. its price movements are amplified relative to the rest of the market), this could mean that the price may drop, 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 kind of growth will Tianli Education International Holdings generate?
Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a big company with solid prospects at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. In the case of Tianli Education International Holdings, its revenue is expected to increase by 30% over the next year, indicating a very optimistic future. If expenses don’t grow at the same or faster rate, this revenue growth should lead to greater cash flow, fueling higher share value.
What does this mean to you :
Are you a shareholder? Given that 1773 is currently trading below the industry PE ratio, now may be the perfect time to increase your stock holdings. With a positive outlook on the horizon, it appears that this growth has yet to be fully priced into the stock price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping tabs on 1773 for a while, it might be time to take a leap. Its prosperous future prospects are yet to be fully reflected in the current share price, which means it’s not too late to buy 1773. other factors such as the track record of its management team, in order to make an informed assessment.
In light of this, if you want to do more analysis on the company, it is essential to be aware of the risks involved. For example, we have identified 2 warning signs for Tianli Education International Holdings (1 should not be ignored) that you need to know.
If you are no longer interested in Tianli Education International Holdings, you can use our free platform to view our list of over 50 other stocks with high growth potential.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.