Is Now The Time To Look At Buying Arcure S.A. (EPA:ALCUR)?

Simply Wall St · 3d ago

Arcure S.A. (EPA:ALCUR), might not be a large cap stock, but it led the ENXTPA gainers with a relatively large price hike in the past couple of weeks. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. Less-covered, small caps tend to present more of an opportunity for mispricing 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 relative to its actual value? Let’s examine Arcure’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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Is Arcure Still Cheap?

The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio 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 17.36x is currently trading slightly below its industry peers’ ratio of 17.38x, which means if you buy Arcure today, you’d be paying a reasonable price for it. And if you believe Arcure should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. Is there another opportunity to buy low in the future? Since Arcure’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

See our latest analysis for Arcure

Can we expect growth from Arcure?

earnings-and-revenue-growth
ENXTPA:ALCUR Earnings and Revenue Growth June 10th 2025

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 more than double over the next couple of years, the future seems bright for Arcure. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

Portfolio Valuation calculation on simply wall st

What This Means For You

Are you a shareholder? It seems like the market has already priced in ALCUR’s positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at ALCUR? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?

Are you a potential investor? If you’ve been keeping an eye on ALCUR, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for ALCUR, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing Arcure at this point in time. For instance, we've identified 3 warning signs for Arcure (2 don't sit too well with us) you should be familiar with.

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