OCI N.V. (AMS:OCI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the ENXTAM over the last few months, increasing to €26.47 at one point, and dropping to the lows of €18.34. 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 OCI's current trading price of €18.34 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at OCI’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for OCI

Is OCI Still Cheap?

Great news for investors – OCI is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €26.20, but it is currently trading at €18.34 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, OCI’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What does the future of OCI 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 OCI, it is expected to deliver a negative revenue growth of -4.7% over the next couple of years, 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? Although OCI is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to OCI, 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 OCI for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.