For a short-term investment strategy, the company has poor fundamentals.
Strengths
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 CAD 0.43 CAD in weekly data.
Graphically speaking, the timing seems perfect for purchasing the stock close to the CAD 0.61 support.
According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
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 has insufficient levels of profitability.
The group shows a rather high level of debt in proportion to its EBITDA.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
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 underlying tendency is negative on the weekly chart below the resistance at 1.15 CAD