Should You Investigate Integrated Research Limited (ASX:IRI) At AU$0.59?
Integrated Research Limited (ASX:IRI), is not the largest company out there, but it saw significant share price movement during recent months on the ASX, rising to highs of AU$0.97 and falling to the lows of AU$0.57. 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 Integrated Research's current trading price of AU$0.59 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 Integrated Research’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Integrated Research
What is Integrated Research worth?
According to my valuation model, Integrated Research seems to be fairly priced at around 13% below my intrinsic value, which means if you buy Integrated Research today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth A$0.67, then there’s not much of an upside to gain from mispricing. In addition to this, Integrated Research has a low beta, which suggests its share price is less volatile than the wider market.
What does the future of Integrated Research look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 Integrated Research, it is expected to deliver a negative earnings growth of -10%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? IRI seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on IRI for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on IRI should the price fluctuate below its true value.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for Integrated Research you should know about.
If you are no longer interested in Integrated Research, 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.
