Mullen Group Ltd. Stock Forecast:
The Mullen Group Ltd. (MTL:TSX) has been analyzed by 11 different analysts, who have provided forecasts for the company’s stock. These analysts have an average target price of CAD 15.38 for the stock over the next 12 months. Additionally, the average rating provided by these analysts for the company’s stock is “Buy,” which suggests that they believe the stock will perform well in the coming year.
Stock Target Advisor’s analysis has determined that the stock is “Neutral,” based on a combination of 9 positive signals and 8 negative signals. This suggests that there are both positive and negative factors influencing the stock’s performance.
Currently, the stock price for Mullen Group Ltd. is CAD 13.69. Over the past week, the stock price has decreased by -12.24%, over the past month it has decreased by -8.67%, but over the last year it has increased by 19.67%. This suggests that the stock has had a mixed performance in recent times, and it’s hard to predict the future performance based on recent trend.
Analysts Coverage Change:
CIBC(Rank#16) has maintained a “Neutral” rating for Mullen Group Ltd. stock and maintains a target price of CAD 14. This suggests that the analysts at CIBC do not see significant potential for the stock to rise or fall in the short term.
STA Research(Rank#233) has also maintained a “Hold” rating for the stock and maintains a target price of CAD 12. This suggests that the analysts at STA Research believe that the stock is fairly valued at its current price and that there is little reason to buy or sell the stock at this time.
Scotiabank Capital(Rank#21)has upgraded their rating on Mullen Group Ltd stock to “Outperform” and has raised the target price to CAD 17.5 from CAD 16. This suggests that the analysts at Scotia Capital believe that the stock has a good chance of performing better than the overall market in the near future.
Positive Fundamentals:
Mullen Group Ltd. stock has several positive attributes that make it an attractive investment option. One of the key strengths of the stock is its low volatility, which means that its annual returns have been stable and consistent compared to its sector peers over a hold period of at least 12 months. Additionally, the stock has outperformed its sector peers on average annual total returns basis in the past 5 years, which is a sign of superior total returns.
Another positive aspect of the stock is that it is underpriced compared to its earnings, book value, and cash flow. This means that it is trading at a lower price compared to its peers on a price to earning, price to book value, and price to cash flow basis. This could indicate that the stock is undervalued and may be a good opportunity for investors to buy at a lower price. However, it is important to note that investors should still check the company’s financial performance to ensure there is no specific reason for the undervaluation.
Furthermore, the company has positive total cash flow and positive total free cash flow in the most recent four quarters, which is a positive indication of the company’s financial health. Additionally, Mullen Group’s stock is underpriced on a free cash flow basis and is in the top quartile, which again may indicate that the stock is undervalued. Finally, the company has shown top quartile earnings growth in the previous 5 years compared to its sector, which is a sign of strong financial performance.
Negative Fundamentals:
Mullen Group Ltd. stock has several drawbacks that investors should be aware of before making a decision to invest. Firstly, the stock is highly volatile, with total returns that are above median for its sector over the past 5 years. This means that investors should have a high risk tolerance before investing in this stock.
Additionally, the stock is overpriced compared to both its book value and its peers on a price to cash flow basis. This means that the stock is trading at a higher price than its intrinsic value.
The company is also highly leveraged, with a debt to equity ratio that is in the bottom half compared to its sector peers. This means that the company has a significant amount of debt relative to its equity. However, it is important to note that sometimes this is high because the company is trying to grow aggressively.
Furthermore, the company has had negative total free cash flow in the most recent four quarters. This means that the company is not generating enough cash to cover its capital expenditures, which could be a red flag for investors. Finally, the stock has shown below median earnings growth in the previous 5 years compared to its sector. This means that the company’s earnings have been growing at a slower rate than its peers. Overall, investors should proceed with caution when considering investing in Mullen Group Ltd. stock due to these factors.
