2CRSI ● From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 65% by 2026.
● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Analyst opinion has improved significantly over the past four months.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● Low profitability weakens the company.
● With a 2024 P/E ratio at 32.83 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● 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.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The company's earnings releases usually do not meet expectations.
