CANCOM SE ● 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
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 39% by 2021.
● The company is in a robust financial situation considering its net cash and margin position.
● As regards fundamentals, the enterprise value to sales ratio is at 0.82 for the current period. Therefore, the company is undervalued.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The company does not generate enough profits, which is an alarming weak point.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 27.22 times its estimated earnings per share for the ongoing year.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● The underlying tendency is negative on the weekly chart below the resistance at 44.08 EUR
