Overall, the company has poor fundamentals for a medium to long-term investment strategy.
Highlights: Grupo Casas Bahia S.A.
The company shows low valuation levels, with an enterprise value at 0.42 times its sales.
The company appears to be poorly valued given its net asset value.
Given the positive cash flows generated by its business, the company's valuation level is an asset.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses: Grupo Casas Bahia S.A.
According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
The company has insufficient levels of profitability.
The group shows a rather high level of debt in proportion to its EBITDA.
For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
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 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
Most analysts recommend that the stock should be sold or reduced.
The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
Over the past twelve months, analysts' consensus has been significantly revised downwards.
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 price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.