Is it too late to consider buying Yunnan Energy New Material Co., Ltd.? (SZSE: 002812) ?

Yunnan Energy New Material Co., Ltd. (SZSE: 002812), is not the largest company in the market, but it has received a lot of attention due to significant price movement on the SZSE over the past few months, increasing to CN¥46.83 at one point, and falling to the low of CN¥32.68. Certain stock price movements can give investors a better opportunity to enter the stock and potentially buy at a lower price. One question that needs to be answered is whether Yunnan Energy New Material’s current price of CN¥32.68 reflects the true value of the mid-cap company? Or is it currently undervalued, giving us an opportunity to buy? Let’s take a look at Yunnan Energy New Material’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 Yunnan’s new energy material

What is the opportunity of Yunnan new energy materials?

Great news for investors – Yunnan Energy New Material is still trading at a fairly cheap price according to our price multiples model, in which we compare the company’s price-to-earnings ratio to the industry average. We used the price-to-earnings ratio in this case because there is not enough visibility to forecast its cash flows. The stock’s ratio of 15.53x is currently well below the industry average of 28.53x, meaning it is trading at a lower price than its peers. What’s more interesting is that Yunnan Energy New Material’s stock price is quite volatile, which gives us more chances to buy since the stock price could go down (or up) over time. ‘future. This is based on its high beta, which is a good indicator of how the stock is doing relative to the rest of the market.

What kind of growth will Yunnan Energy New Material generate?

Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. Buying a great company with a strong outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With earnings expected to grow 47% over the next two years, the future looks bright for Yunnan Energy New Material. It looks like higher cash flow is on the cards for the stock, which should translate into a higher share valuation.

What this means for you

Are you a shareholder? Given that 002812 is currently trading below the industry PE ratio, this may be a great time to accumulate more of your holdings in the stock. With a positive earnings outlook on the horizon, it appears this growth has yet to be fully factored into the stock price. However, other factors should also be considered, such as financial health, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping your eye on 002812 for a while, now might be the time to get into the stock. Its optimistic future earnings outlook is not yet fully reflected in the current stock price, meaning it’s not too late to buy 002812. But before you make an investment decision, consider other factors such as the strength of its balance sheet, in order to make an informed investment decision.

If you are interested in learning more about Yunnan Energy New Material as a company, it is important to be aware of the risks it faces. At Simply Wall St we found 3 warning signs for Yunnan’s new energy material and we think they deserve your attention.

If you are no longer interested in Yunnan Energy New Material, 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 constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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