Summary

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


Strengths

● The group's high margin levels account for strong profits.

● The company is in a robust financial situation considering its net cash and margin position.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

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

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 27.12 AUD


Weaknesses

● Technically, the stock approaches a strong medium-term resistance at AUD 46.31.

● The group usually releases earnings worse than estimated.

● With an enterprise value anticipated at 5.7 times the sales for the current fiscal year, the company turns out to be overvalued.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 32.79 times its estimated earnings per share for the ongoing year.

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