Why Tri Chemical Laboratories Inc. (TSE:4369) Could Be Worth Watching

Simply Wall St · 04/15 06:08

Tri Chemical Laboratories Inc. (TSE:4369), might not be a large cap stock, but it led the TSE gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Tri Chemical Laboratories’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Our free stock report includes 2 warning signs investors should be aware of before investing in Tri Chemical Laboratories. Read for free now.

What Is Tri Chemical Laboratories Worth?

Tri Chemical Laboratories is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 16.16x is currently well-above the industry average of 11.47x, meaning that it is trading at a more expensive price relative to its peers. But, is there another opportunity to buy low in the future? Given that Tri Chemical Laboratories’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

See our latest analysis for Tri Chemical Laboratories

Can we expect growth from Tri Chemical Laboratories?

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TSE:4369 Earnings and Revenue Growth April 15th 2025

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. With profit expected to grow by 47% over the next couple of years, the future seems bright for Tri Chemical Laboratories. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? 4369’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe 4369 should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on 4369 for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for 4369, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - Tri Chemical Laboratories has 2 warning signs we think you should be aware of.

If you are no longer interested in Tri Chemical Laboratories, you can use our free platform to see our list of over 50 other stocks with a high growth potential.