Yahoo Finance Should You Buy Nanotech Security Corp (CVE:NTS) Now?
Nanotech Security Corp (CVE:NTS), a aerospace & defense company based in Canada, saw significant share price volatility over the past couple of months on the TSXV, rising to the highs of CA$1.31 and falling to the lows of CA$1.12. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Nanotech Security’s current trading price of CA$1.2 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 Nanotech Security’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for Nanotech Security
What is Nanotech Security worth?
Great news for investors – Nanotech Security is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CA$2.17, but it is currently trading at CA$1.20 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Nanotech Security’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Can we expect growth from Nanotech Security?
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. With revenue expected to more than double in the next few years, the future appears to be extremely bright for Nanotech Security. If expenses can also be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since NTS is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 NTS for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NTS. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Nanotech Security. You can find everything you need to know about Nanotech Security in the latest infographic research report. If you are no longer interested in Nanotech Security, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
