At €18.90, Is It Time To Put HELMA Eigenheimbau Aktiengesellschaft (ETR:H5E) On Your Watch List?

HELMA Eigenheimbau Aktiengesellschaft (ETR:H5E), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the XTRA. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on HELMA Eigenheimbau’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for HELMA Eigenheimbau

What Is HELMA Eigenheimbau Worth?

Great news for investors – HELMA Eigenheimbau is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €30.39, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, HELMA Eigenheimbau’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What does the future of HELMA Eigenheimbau look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for HELMA Eigenheimbau, at least in the near future.

What This Means For You

Are you a shareholder? Although H5E is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to H5E, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on H5E for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Our analysis shows 2 warning signs for HELMA Eigenheimbau (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

If you are no longer interested in HELMA Eigenheimbau, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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