● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The group's high margin levels account for strong profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Its low valuation, with P/E ratio at 6.54 and 6.44 for the ongoing fiscal year and 2023 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● The company is one of the best yield companies with high dividend expectations.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.