The company usually posts poor financials for mid or long term investments.
The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at AUD 0.17 AUD in weekly data.
Graphically speaking, the timing seems perfect for purchasing the stock close to the AUD 0.18 support.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.57 for the 2020 fiscal year.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
Low profitability weakens the company.
The group shows a rather high level of debt in proportion to its EBITDA.
Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
The group usually releases earnings worse than estimated.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
Analysts covering the stock have recently lowered their earnings forecast.
For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
The technical configuration over the long term remains negative on the weekly chart below the resistance level at 0.34 AUD