What is the stock price of Kraken Robotics Inc. (CVE:PNG) doing?

Kraken Robotics Inc. (CVE:PNG), may not be a large-cap stock, but it has led the TSXV winners with a relatively large price rally over the past two weeks. Less hedged, small caps tend to present more mispricing opportunities due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price compared to its true value? Let’s take a look at Kraken Robotics’ outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Kraken Robotics

What is the opportunity of Kraken robotics?

Good news, investors! Kraken Robotics is still a good deal right now. My valuation model shows that the intrinsic value of the stock is C$0.75, but it is currently trading at C$0.47 in the stock market, which means there is still an opportunity to buy now. However, since Kraken Robotics’ share is quite volatile (meaning its price movements are amplified compared to the rest of the market), this could mean that the price may drop, giving us another chance. to buy in the future. This is based on its high beta, which is a good indicator of stock price volatility.

What kind of growth will Kraken Robotics generate?

earnings-and-revenue-growth

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a big company with solid prospects at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With revenues expected to increase by 71% over the next two years, the future looks bright for Kraken Robotics. If the level of expenses can be maintained, it seems that a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.

What this means for you

Are you a shareholder? Given that PNG is currently undervalued, now may be the perfect time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it appears that this growth has yet to be fully priced into the stock price. However, other factors such as financial health must also be taken into account, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on PNG for a while, it might be time to get into the stock. Its prosperous future prospects are not yet fully reflected in the current share price, which means it is not too late to buy PNG. But before making investment decisions, consider other factors such as the strength of its balance sheet, in order to make an informed purchase.

So, if you want to dig deeper into this stock, it is crucial to consider the risks it faces. Example: we have identified 2 warning signs for Kraken Robotics you should be aware.

If you are no longer interested in Kraken Robotics, you can use our free platform to view our list of over 50 other stocks with high growth potential.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Join a Paid User Research Session
You will receive a $30 Amazon Gift Card for 1 hour of your time while helping us create better investment tools for individual investors like you. register here

Eleanor C. William