Yahoo Finance Is It Too Late To Consider Buying Genworth MI Canada Inc. (TSE:MIC)?
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Genworth MI Canada Inc. (TSE:MIC), operating in the financial services industry based in Canada, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of CA$39.86 to CA$43.04. However, is this the true valuation level of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Genworth MI Canada’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 Genworth MI Canada
What's the opportunity in Genworth MI Canada?
Good news, investors! Genworth MI Canada is still a bargain right now. According to my valuation, the intrinsic value for the stock is CA$77.12, but it is currently trading at CA$41.44 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Genworth MI Canada’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Genworth MI Canada generate?
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. Though in the case of Genworth MI Canada, it is expected to deliver a relatively unexciting earnings growth of 1.6%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Genworth MI Canada, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since MIC is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MIC for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MIC. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Genworth MI Canada. You can find everything you need to know about Genworth MI Canada in the latest infographic research report. If you are no longer interested in Genworth MI Canada, 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.
