The recent downside mouvement appears to lose momentum which could allow Mitsubishi Gas Chemical Company, Inc. shares to regain a positive medium term outlook.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● Its low valuation, with P/E ratio at 8.73 and 8.61 for the ongoing fiscal year and 2023 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company shows low valuation levels, with an enterprise value at 0.63 times its sales.
● The company's share price in relation to its net book value makes it look relatively cheap.
● This company will be of major interest to investors in search of a high dividend stock.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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MITSUBISHI GAS CHEMICAL COMPANY, INC. is a Japan-based chemical company. The Company operates in five business segments. The Natural Gas-related Chemicals segment manufactures and sells methanol, ammonia, amine products, methacrylic acid products, multiple alcohol, enzyme and crude. The Aromatic-related Chemicals segment manufactures and sells xylene isomer and xylene derivatives. The Functional Chemicals segment manufactures and sells industrial inorganic chemicals, electronic chemicals and engineering plastics. The Specialty Functional Materials segment manufactures and sells materials for printed circuit boards (PCBs), printed boards and deacidification agents. The Others segment is engaged in the real estate business.