● 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.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths
● Its low valuation, with P/E ratio at 4.37 and 8.01 for the ongoing fiscal year and 2023 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.11 for the 2022 fiscal year.
● The company's share price in relation to its net book value makes it look relatively cheap.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● 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.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Analyst opinion has improved significantly over the past four months.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company's earnings growth outlook lacks momentum and is a weakness.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company sustains low margins.
● Over the past four months, analysts' average price target has been revised downwards significantly.
● Over the past twelve months, analysts' opinions have been revised negatively.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.