● 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.