● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
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 68% by 2023.
● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 42.14 times its estimated earnings per share for the ongoing year.
● With an enterprise value anticipated at 4.16 times the sales for the current fiscal year, the company turns out to be overvalued.
● The company is highly valued given the cash flows generated by its activity.
● The company is not the most generous with respect to shareholders' compensation.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.