FTSE 250 Hi-tech company Oxford Instruments (LSE: OXIG) fell by 29% compared to July 15 an annual trade in the amount of £ 26.

It was founded in 1959, when it was withdrawn from the physics department of the University of Oxford. Early success was his pioneering role in the development of magnetic resonance imaging used in the medical diagnosis.

From that time, he has been on the most up-to-date design and production of technologically advanced products for scientific and industrial utilize.

Perhaps this is a global leader in the field of nanotechnology. This includes manipulation of matter at the atomic and molecular level to create recent materials and devices.

Why did the price of the action fall?

The key reason for the last decline in stock prices was that she agreed to sell her activities of Nanonuki.

It should be noted, however, that this covers only part of the interests of the company’s nanotechnology. In particular, the bit that creates special units for the supercool quantum computers.

The company emphasizes that sales will enhance its margin by 1.9%, enabling focus on three basic markets of structural growth. These are analysis of materials, semiconductor and health care and life sciences.

In addition, up to 50 million pounds of disinvalalic revenues will go to the redemption of the action. They usually support share prices.

Latest results

The results of the full tax year of 2024/25 increased revenues by 6.5% year a year to 500.6 million GBP. For the first time, revenues violated the barrier of 500 million pounds.

Operational profit increased by 10.8% to 82.2 million GBP, and the corrected profit margin increased by 0.7% to 17.8%.

Revenues are the company’s total income, while earnings (or “profit”) remain after deducting expenses.

The company’s risk is a stern failure of one of its key products. This can damage its reputation and be steep to repair.

After saying, the forecasts of consensus analysts are that his earnings will enhance by 32.4% of each year to the final year 2027/28.

Are the actions underestimated?

The first part of my company’s share price is to compare its key valuations with the valuations of its competitors.

In terms of price for sale, the Oxford Instruments 2.1 reading is underestimated compared to the average peers of 2.7. They include Brotherly by 1.7, Renishaw at 2.8. Spectros at 2.9 and Thermo Fisher Scientific at 3.5.

However, it looks exaggerated in relation to the price to a profit of 39.7 compared to the average of its peer group.

The second part of my assessment is to conduct an analysis of discounted cash flows (DCF). This is based on cash flow forecasts for the basic activity and tips in which the price of each company should be.

Using the data of other analysts and my own, DCF for Oxford instruments shows that its shares are 40% underestimated in the amount of $ 18.44.

Therefore, their fair value is 30.73 £.

My view

I usually focus on wrestling, which ensure high dividend performance, while Oxford Instruments currently pays only 1.2%.

However, his very powerful profit growth potential should supply the price of shares and dividend over time.

I also have no shares in the rapidly developing nanotechnology sector. In particular, analysts design a intricate annual growth rate of 34.7% to 2032.

That’s why I will buy shares soon.