Summary

● 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 group's high margin levels account for strong profits.

● The company is in a robust financial situation considering its net cash and margin position.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● For the past twelve months, EPS forecast has been revised upwards.

● The stock is in a well-established, long-term rising trend above the technical support level at 853.6 GBX


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at GBX 1294.

● Technically, the stock approaches a strong medium-term resistance at GBX 1340.

● 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.

● The company's enterprise value to sales, at 4.13 times its current sales, is high.

● The firm trades with high earnings multiples: 29.51 times its 2020 earnings per share.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.