FERRONORDIC AB ● 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
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at SEK 78.8 SEK in weekly data.
● The close medium term support offers good timing for purchasing the stock.
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.32 for the 2020 fiscal year.
● Its low valuation, with P/E ratio at 5.2 and 3.84 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The underlying tendency is negative on the weekly chart below the resistance at 114.4 SEK
