Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 54.48, which offers good timing for buyers.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 54.05 support.

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

● The stock, which is currently worth 2018 to 0.26 times its sales, is clearly overvalued in comparison with peers.

● Its low valuation, with P/E ratio at 6.41 and 6.1 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.

● 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.


Weaknesses

● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Revenue estimates are regularly revised downwards for the current and coming years.

● For the last few months, analysts have been revising downwards their earnings forecast.

● Below the resistance at 63.37 EUR, the stock shows a negative configuration when looking looking at the weekly chart.