Yahoo Finance Is Now An Opportune Moment To Examine Spin Master Corp. (TSE:TOY)?
Spin Master Corp. (TSE:TOY), which is in the leisure business, and is based in Canada, saw significant share price movement during recent months on the TSX, rising to highs of CA$45.78 and falling to the lows of CA$36.1. 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 Spin Master's current trading price of CA$36.1 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Spin Master’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 Spin Master
What's the opportunity in Spin Master?
According to my valuation model, Spin Master seems to be fairly priced at around 11.26% above my intrinsic value, which means if you buy Spin Master today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth CA$32.45, there’s only an insignificant downside when the price falls to its real value. In addition to this, Spin Master has a low beta, which suggests its share price is less volatile than the wider market.
Can we expect growth from Spin Master?
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. In the upcoming year, Spin Master’s earnings are expected to increase by 29%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? TOY’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on TOY, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Spin Master. You can find everything you need to know about Spin Master in the latest infographic research report. If you are no longer interested in Spin Master, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
