Is It Too Late To Consider Buying Britvic plc (LON:BVIC)?

Simply Wall St
·3 min read

Britvic plc (LON:BVIC), is not the largest company out there, but it saw a decent share price growth in the teens level on the LSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Britvic’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Britvic

What is Britvic worth?

Good news, investors! Britvic is still a bargain right now. My valuation model shows that the intrinsic value for the stock is £12.71, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Britvic’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What kind of growth will Britvic generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. Britvic's earnings over the next few years are expected to increase by 60%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since BVIC is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on BVIC for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BVIC. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into Britvic, you'd also look into what risks it is currently facing. While conducting our analysis, we found that Britvic has 2 warning signs and it would be unwise to ignore them.

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

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Recommended Stories

  • Here is why Stanley Cup champion Lightning will lose in first round of playoffs

    Hall of Fame hockey writer Helene Elliott analyzes the Stanley Cup playoffs and predicts defending champion Tampa Bay will lose in the first round.

  • Donald Trump's new blog crashed after he posted an unverified claim about election fraud in Arizona

    The former president's blog went offline following his statement about "massive fraud in the form of "broken seals on boxes, ballots missing, and worse."

  • UN Security Council meeting on Israel-Gaza as Netanyahu vows to continue strikes

    The United Nations Security Council was preparing to meet Sunday, as the aerial bombardment between Israel and Hamas between entered a seventh day.The latest: Four Palestinians died in airstrikes early Sunday, as Israeli forces bombed the home of Gaza's Hamas chief, Yehya al-Sinwar, per Reuters. Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for freeThe big picture: At least 149 people have died in Gaza and 10 others in Israel since the fighting erupted last Monday — including 41 Palestinian children and two Israeli children, Reuters notes.President Biden raised concerns with Israeli Prime Minister Benjamin Netanyahu Saturday about civilian casualties in Gaza and the bombing of a building that housed media offices including AP and Al Jazeera.Netanyahu said in a televised address late Saturday that Israeli forces were "in the midst of this operation" and it "will continue as long as necessary," but they would try not to cause civilian casualties, Reuters reports. He accused Hamas of "hiding behind civilians."In photos: Aerial bombardments in Israel, Gaza intensify The Israeli Iron Dome missile defense system (L) intercepts rockets (R) fired by Hamas from Gaza toward Israel early on May 16. Photo: Mohammed Abed/AFP via Getty Images Palestinian doctors rush to treat a wounded girl who arrived with her family at Al-Shifa Hospital after intensive bombardments in Gaza City on May 16. Photo: Mohammed Abed/AFP via Getty Images Members of Israel's security and emergency services transport an injured woman from a site hit by a rocket in Ramat Gan, near the coastal city of Tel Aviv, on May 15. Photo: Oren Ziv/AFP via Getty Images Palestinians carry one of survivors from under the rubble of a building, after it was struck by Israeli strikes, in Gaza, May 16. Photo: Mohammed Abed/AFP via Getty Images A member of the Israeli emergency services works on a site hit by a rocket in Ramat Gan, following the launching of rockets from Gaza. Photo: Gil Cohen-Magen/AFP via Getty ImagesLike this article? Get more from Axios and subscribe to Axios Markets for free.

  • Hundreds of bodies found buried along Indian riverbanks

    Police are reaching out to villagers in northern India to investigate the recovery of bodies buried in shallow sand graves or washing up on the Ganges River banks, prompting speculation on social media that they were the remains of COVID-19 victims. On Friday, rains exposed the cloth coverings of bodies buried in shallow sand graves on the riverbank in Prayagraj, a city in Uttar Pradesh state. Navneet Sehgal, a state government spokesman, on Sunday denied local media reports that more than 1,000 corpses of COVID-19 victims had been recovered from rivers in the past two weeks.

  • What's it like to travel to Costa Rica right now? Blissfully quiet in some parts

    Costa Rica travel can include time outdoors at beaches, cloud forests, national parks and open-air restaurants.

  • He led the Proud Boys in the Capitol riot and shamed his town

    Long before Ethan Nordean led the Proud Boys in the Capitol riot, he washed dishes at his family's restaurant on Puget Sound.

  • Aides to Joe Biden describe the president as having a 'short fuse' but he never erupts in fits of rage like Donald Trump, report says

    Joe Biden occasionally hangs up the phone on someone he thinks is wasting his time, people who work closely with him told the New York Times.

  • Supermodel Bella Hadid donned traditional dress and joined a 'Free Palestine' march in New York City

    Bella Hadid, whose father Mohamed Hadid is Palestinian, marched in New York and posted messages of support on social media.

  • Myanmar junta attacks western town that resisted coup

    The U.S. and British embassies in Myanmar expressed concern about reports of fierce government attacks on a town in western Chin state, where the ruling junta declared martial law because of armed resistance to military rule. The fighting began around 6 a.m. Saturday when government troops reinforced by helicopters began shelling the western part of the town of Mindat, destroying several homes, said a spokesman of the Chinland Defence Force. “Mindat town is now under siege and is bracing for an all-out assault by the junta troops from air and by land,” said a statement by the Chin Human Rights Organization.

  • Push for one million vaccinations a day to save summer

    The Government wants to vaccinate as many as one million people a day as part of a drive to beat the Indian variant of Covid-19 and save the British summer, The Telegraph can disclose. As a first step, ministers have told MPs they “safely” expect to increase daily doses from 500,000 to 800,000 within a fortnight, by drawing on a stockpile of 3.2 million doses. Government insiders hope this daily run-rate could be further increased, with the possibility of reaching a peak of around one million during some days over the summer. A further boost to the vaccination push could come this week when MHRA, the medicines regulator, is expected to give the green light for Johnson & Johnson’s single dose Janssen vaccine. On Saturday night there were fears that the Government's decision to bring forward second doses for over-50s could impact younger people, with the Royal College of General Practitioners (RCGP) warning they might have to wait "a while longer". But ministers hope to keep daily doses at “800,000 and above”, putting the possibility of hitting one million first and second jabs a day in sight. And senior government sources also confirmed that – despite the need to get second jabs into the arms of people in England – first jabs will be open “to the over 35s in the coming days”. It comes as: Doctors were told by NHS England not to rearrange second doses for over-50s booked in the next 10 days, but from May 25 any appointment that is more than eight weeks after their first dose must be brought forward; Oliver Dowden, the Culture Secretary, warned there was a risk to other live events after June 21 when all restrictions are meant to be lifted; Vaccine buses were deployed to areas such as Bolton and Blackburn after high numbers of infections were identified as the Indian variant of Covid-19; The vaccination programme, the biggest in health service history, has so far seen over 36 million people receive their first dose and over 19 million receive their second dose. Ministers are confident that the army of 200,000 vaccination volunteers – including 80,000 vaccinators – will be enough to handle the expected surge in supply.

  • Alireza Fazeli Monfared wanted to live as a free gay man in the West. His family in Iran beheaded him days before his dream came true, say activists.

    Alireza Fazeli Monfared's mother found his headless body in a remote village. His killers are yet to be arrested.

  • Liz Cheney says more lawmakers would have voted to impeach Trump but ‘feared for their lives’

    ‘Members of Congress aren’t able to cast votes, or feel that they can’t, because of their own security,’ Ms Cheney says

  • Northern Ireland Protocol 'dead in the water', senior ally of Boris Johnson says

    The Northern Ireland Protocol is “dead in the water”, a senior ally of Boris Johnson has said as the Government gave the European Union two months to make the system work. Ministers are increasingly worried about the way that the European Union is enforcing checks when goods move from Great Britain and Northern Ireland. There are fears among senior figures that unless the EU eases checks in time for when the marching season reaches its peak on July 12, tensions could flare. A Government source said: “The marching season is a date whereby you would want to have a material improvement in what is happening. “We need a bit of movement by then because that is when we risk seeing the kind of disruption and the protests that we had recently.” The terms of the Protocol, signed as part of the UK’s exit from the European Union, are designed to stop goods originating from Great Britain passing into the Republic of Ireland without any checks. However the UK Government estimates the EU is carrying out 20 per cent of all its external border checks at the so-called ‘sea border’ in the Irish Sea. One UK source said EU officials were halting shipments of own-brand loaves of bread being transported from a Sainsbury's supermarket in Liverpool to a sister store in Belfast, even though there are no Sainsbury’s shops in the Republic. Lord Frost, Boris Johnson’s Brexit negotiator, and his team are examining the idea of ‘mutual enforcement’ of border checks, in which either side enforces checks at the same level as the other, effectively removing them. However the EU is said not to want to engage. Officially the Government still wants to make the protocol work, with insiders insisting that Boris Johnson, the Prime Minister, does not want to rip up a treaty just six months into Brexit, although nothing is ruled out. One source said: "If they don't make improvements in the next period of time obviously we are going to have to consider other options." The replacement of Democratic Unionist Party leader Arlene Foster with the more hardline Edwin Poots on Friday has increased jitters in Number 10. Senior allies of Mr Johnson are increasingly pessimistic with one describing the protocol to The Telegraph as “dead in the water”. The senior ally added: “The Northern Ireland Protocol does not work. It contravenes the Good Friday Agreement in many ways. It is damaging. “It is not a workable agreement. Whatever you think about Arlene Foster, she was a moderate. And it is always dangerous when you start losing moderates from these key positions.”

  • Damage assessment begins on overturned cargo ship after fire

    A salvage team on Saturday began assessing damage caused by a fire inside the remains of an overturned cargo ship that is being dismantled along the Georgia coast. “The assessment is likely to take several days,” the multiagency command overseeing the demolition of the Golden Ray said in a statement. A giant crane being used to dismantle the ship was unhooked Saturday and shifted away from the site to allow for the damage assessments, officials said.

  • Foreign expedition abandons Everest attempt citing COVID-19 risks

    An international expedition abandoned its attempt to scale Mount Everest on Saturday, citing risks posed by an increasing number of COVID-19 cases at the base camp, the organisers said. Some climbers were evacuated from Everest base camp in April after they fell ill with COVID-19 symptoms as Nepal battles a brutal second wave of infections. Lukas Furtenbach, of Austrian expedition organising company Furtenbach Adventures, said his team of climbers from America, Norway, Israel, Germany, Austria, Italy, Luxembourg and Romania were abandoning the climb for safety reasons as the number of COVID-19 infections at the base camp was increasing.

  • Biden must speak out against apartheid in Israel

    Now is the time for President Joe Biden to speak out against apartheid in Israel and for the U.S. to no longer support state-sanctioned violence and repression against Palestinians. Violence and civil unrest have broken out in Israel and the occupied Palestinian territories, with the Israel Defense Forces (IDF) waging airstrikes with U.S.-supplied bombs and flattening Palestinian high rise apartment buildings in Gaza and the Palestinian militant group Hamas launching rocket attacks. Dozens have been killed, mostly Palestinians, including children.

  • Four women who've accused Cuomo of sexual harassment have been issued subpoenas by New York attorney general

    Since December, several women have come forward against Cuomo, who's repeatedly denied all allegations and refused calls to resign.

  • A tiger that was missing in Houston for nearly a week has been found safe

    "I think the public thought it'd be easy to catch a tiger. But it wasn't. At all," Houston Police Cmdr. Ron Borza said.

  • Once a contender in majors, Fowler now needs help getting in

    There was a time when being side-by-side with Tiger Woods at a major was a good sign. Woods was watching the Masters from home in Florida while recovering from broken bones in his legs, the worst of more than a decade of injuries. Fowler was watching with him because for the first time in a decade he wasn't eligible to play.

  • Meghan McCain slams Marjorie Taylor Greene for making Republicans look like 'psychotic barbarians'

    The "The View" co-host wrote that Marjorie Taylor Greene is "behaving like an animal" in her campaign against New York Rep. Alexandria Ocasio-Cortez.