ENGIE ● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The share is getting closer to its long-term support in weekly data, at EUR 8.7, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● As regards fundamentals, the enterprise value to sales ratio is at 0.82 for the current period. Therefore, the company is undervalued.
● With a P/E ratio at 10.41 for the current year and 8.36 for next year, earnings multiples are highly attractive compared with competitors.
● This company will be of major interest to investors in search of a high dividend stock.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● The company is in debt and has limited leeway for investment
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 12.09 EUR
