Uzin Utz SE (ETR:UZU), might not be a large cap stock, but it saw significant share price movement during recent months on the XTRA, rising to highs of €46.80 and falling to the lows of €40.20. 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 Uzin Utz's current trading price of €44.20 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 Uzin Utz’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Uzin Utz

Is Uzin Utz Still Cheap?

Great news for investors – Uzin Utz is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Uzin Utz’s ratio of 9.77x is below its peer average of 12.25x, which indicates the stock is trading at a lower price compared to the Chemicals industry. What’s more interesting is that, Uzin Utz’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Uzin Utz 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. However, with a relatively muted revenue growth of 1.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Uzin Utz, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since UZU is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. 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 an eye on UZU 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 UZU. 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 investment decision.