Unicaja Banco,bidet nozzle not extending S.A. (
BME:UNI
), operating in the financial services industry based in Spain, saw significant share price movement during recent months on the BME, rising to highs of €0.98 and falling to the lows of €0.82. 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 Unicaja Banco's current trading price of €0.82 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 Unicaja Banco’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Unicaja Banco
What's the opportunity in Unicaja Banco?
Great news for investors – Unicaja Banco is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €1.09, but it is currently trading at €0.82 on the share market, meaning that there is still an opportunity to buy now. Unicaja Banco’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Unicaja Banco?
BME:UNI Past and Future Earnings, March 9th 2020
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with a relatively muted profit growth of 8.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Unicaja Banco, at least in the short term.
What this means for you:
Are you a shareholder?
Even though growth is relatively muted, since UNI is currently undervalued, it may be a great time to increase your holdings in the stock. 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 UNI for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy UNI. 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 buy.
Story continues
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Unicaja Banco. You can find everything you need to know about Unicaja Banco in
the latest infographic research report
. If you are no longer interested in Unicaja Banco, you can use our free platform to see my list of over
50 other stocks with a high growth potential
.
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. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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