Summary

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

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The prospective high growth for the next fiscal years is among the main assets of the company

● Historically, the company has been releasing figures that are above expectations.

● As regards fundamentals, the enterprise value to sales ratio is at 1.13 for the current period. Therefore, the company is undervalued.

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

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● 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 last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● The stock is in a well-established, long-term rising trend above the technical support level at 2347 GBX


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at GBX 5412.

● The company does not generate enough profits, which is an alarming weak point.

● The firm trades with high earnings multiples: 41.33 times its 2021 earnings per share.