19-05-2025
At AU$17.77, Is Eagers Automotive Limited (ASX:APE) Worth Looking At Closely?
Eagers Automotive Limited (ASX:APE), might not be a large cap stock, but it saw a significant share price rise of 43% in the past couple of months on the ASX. The company is inching closer to its yearly highs following the recent share price climb. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Let's take a look at Eagers Automotive's outlook and value based on the most recent financial data to see if the opportunity still exists.
Our free stock report includes 4 warning signs investors should be aware of before investing in Eagers Automotive. Read for free now.
The stock seems fairly valued at the moment according to our valuation model. It's trading around 12% below our intrinsic value, which means if you buy Eagers Automotive today, you'd be paying a fair price for it. And if you believe that the stock is really worth A$20.13, then there's not much of an upside to gain from mispricing. In addition to this, Eagers Automotive has a low beta, which suggests its share price is less volatile than the wider market.
View our latest analysis for Eagers Automotive
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. With profit expected to grow by 53% over the next couple of years, the future seems bright for Eagers Automotive. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder? APE'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 APE, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. To that end, you should learn about the 4 warning signs we've spotted with Eagers Automotive (including 1 which is a bit unpleasant).
If you are no longer interested in Eagers Automotive, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
