Summary

● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.


Strengths

● The company shows low valuation levels, with an enterprise value at 0.54 times its sales.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● For the past twelve months, EPS forecast has been revised upwards.

● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.

● The group usually releases upbeat results with huge surprise rates.


Weaknesses

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.

● The company sustains low margins.

● The valuation of the company is particularly high given the cash flows generated by its activity.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

● The overall consensus opinion of analysts has deteriorated sharply over the past four months.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.