Does The Keyrus S.A. (EPA:KEY) Share Price Fall With The Market?




View our latest analysis for Keyrus

What KEY’s beta value tells investors

Given that it has a beta of 1.55, we can surmise that the Keyrus share price has been fairly sensitive to market volatility (over the last 5 years). If this beta value holds true in the future, Keyrus shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it’s also important to consider whether Keyrus is growing earnings and revenue. You can take a look for yourself, below.

ENXTPA:KEY Income Statement, July 19th 2019
ENXTPA:KEY Income Statement, July 19th 2019

Does KEY’s size influence the expected beta?

Keyrus is a rather small company. It has a market capitalisation of €70m, which means it is probably under the radar of most investors. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.

What this means for you:

Since Keyrus has a reasonably high beta, it’s worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether KEY is a good investment for you, we also need to consider important company-specific fundamentals such as Keyrus’s financial health and performance track record. I highly recommend you dive deeper by considering the following:

  2. Past Track Record: Has KEY been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of KEY’s historicals for more clarity.
  3. Other Interesting Stocks: It’s worth checking to see how KEY measures up against other companies on valuation. You could start with this free list of prospective options.

