ENGIE ● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at EUR 8.57, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 7.89 support.
● As regards fundamentals, the enterprise value to sales ratio is at 0.79 for the current period. Therefore, the company is undervalued.
● With a P/E ratio at 8.39 for the current year and 7.56 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.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● 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 sustains low margins.
● The group shows a rather high level of debt in proportion to its EBITDA.
● 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 past seven days, analysts have been lowering their EPS expectations for the company.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● The underlying tendency is negative on the weekly chart below the resistance at 12.09 EUR
