Yahoo Finance Is It Too Late To Consider Buying accesso Technology Group plc (LON:ACSO)?
accesso Technology Group plc (LON:ACSO), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the AIM over the last few months. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at accesso Technology Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for accesso Technology Group
Is accesso Technology Group still cheap?
Great news for investors – accesso Technology Group 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 accesso Technology Group’s ratio of 20.54x is below its peer average of 38.27x, which indicates the stock is trading at a lower price compared to the Software industry. However, given that accesso Technology Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of accesso Technology Group look like?
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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for accesso Technology Group, at least in the near future.
What this means for you:
Are you a shareholder? Although ACSO is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to ACSO, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on ACSO for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
If you'd like to know more about accesso Technology Group as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for accesso Technology Group and we think they deserve your attention.
If you are no longer interested in accesso Technology Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.