AXFOOD AB ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● As regards fundamentals, the enterprise value to sales ratio is at 0.97 for the current period. Therefore, the company is undervalued.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 187.4 SEK
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at SEK 210.4.
● Technically, the stock approaches a strong medium-term resistance at SEK 212.5.
● The company sustains low margins.
● The company's earnings releases usually do not meet expectations.
● With a 2019 P/E ratio at 26.38 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
