● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a poor ESG score according to Refinitiv, which ranks companies by sector.
Strengths
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Its low valuation, with P/E ratio at 5.43 and 7.27 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company has a low valuation given the cash flows generated by its activity.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● 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.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The company is not the most generous with respect to shareholders' compensation.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.