Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA) may not be a large-cap stock, but it has managed to maintain its current price in a relatively tight range of €16.70 to €18.24 on the XTRA over the past few months. However, does this price actually reflect the small-cap’s true value? Or is it currently undervalued, giving us a buying opportunity? Let’s take a look at Hamburger Hafen und Logistik’s outlook and value based on the latest financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Hamburg Port and Logistics
What is the Port of Hamburg and Logistics worth?
Hamburger Hafen und Logistik appears expensive according to our price multiple model, which compares the company’s price-to-earnings ratio to the industry average. In this case, we have used the price-to-earnings (P/E) ratio since there is not enough information to reliably forecast the stock’s cash flows. We note that Hamburger Hafen und Logistik’s ratio of 78.34x is higher than its peers’ average of 14.1x, suggesting that the stock is trading at a higher price relative to the Infrastructure industry. But is there another opportunity to buy cheap in the future? Since Hamburger Hafen und Logistik’s stock is quite volatile (i.e. its price fluctuations are more pronounced relative to the rest of the market), this could mean that the price can fall even further, giving us another buying opportunity in the future. This is based on the high beta, which is a good indicator of share price volatility.
What does the future of Hamburg’s port and logistics look like?
Investors seeking growth in their portfolio should consider a company’s prospects before buying its shares. Although value investors would argue that intrinsic value relative to price is most important, high growth potential at a cheap price would be a more compelling investment thesis. With earnings expected to more than double in the coming years, the future looks extremely bright for Hamburger Hafen und Logistik. It looks like higher cash flow is on the horizon for the stock, which should lead to a higher share valuation.
What this means for you
Are you a shareholder? HHFA’s optimistic future growth seems to be factored into the current share price, as shares are trading above the industry price multiple. But this raises another question: is now the right time to sell? If you believe HHFA should trade below its current price, it may be profitable to sell high and buy again when its price falls toward the industry P/E. But before you make that decision, check to see if the fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on HHFA for some time, now might not be the best time to get into the stock. The price has outperformed industry peers, meaning there’s likely no further upside from mispricing. However, the bullish outlook is encouraging for HHFA, meaning it’s worth diving deeper into other factors to take advantage of the next price dip.
If you want to learn more about the Port of Hamburg and Logistics as a company, it is important to be aware of the risks it faces. To this end, you should read about the 2 warning signs We have sighted the Hamburg Port and Logistics (including 1 which is causing concern).
If you are no longer interested in the Hamburger Hafen und Logistik share, you can view our list of over 50 other stocks with high growth potential on our free platform.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
