Below the resistance levels that are currently being tested and which are situated around 13.3 EUR, the beginning of a correction phase for shares in Fluidra, S.A. appears to be the most likely scenario.
Strengths
● Analysts covering this company mostly recommend stock overweighting or purchase.
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 13.3.
● The stock is close to a major daily resistance at EUR 13.5, which should be gotten rid of so as to gain new appreciation potential.
● The company is in debt and has limited leeway for investment
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 46.21 times its estimated earnings per share for the ongoing year.
● The company is not the most generous with respect to shareholders' compensation.
● 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.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● For the past year, analysts have significantly revised downwards their profit estimates.
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Fluidra, S.A. specializes in the design, manufacturing and marketing of swimming pool equipment. The group also develops a production and equipment sales activity intended for water treatment. Net sales break down by family of products as follows:
- swimming pool equipment and accessories (80.2%);
- water treatment equipment (17.6%). Fluidra, S.A. also provides fluid carrying systems;
- other (2.2%): irrigation control systems.
Net sales are distributed geographically as follows: Southern Europe (26.7%), Europe (13.7%), North America (43.6%) and other (16%).