CONSTELLIUM SE ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 6.78, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company shows low valuation levels, with an enterprise value at 0.47 times its sales.
● Its low valuation, with P/E ratio at 4.63 and 6.09 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The company is in debt and has limited leeway for investment
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● The underlying tendency is negative on the weekly chart below the resistance at 9.48 USD
