● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● From a short-term investment perspective, the company presents a deteriorated fundamental situation
● The company has a good ESG score relative to its sector, according to MSCI.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 56% by 2027.
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The opinion of analysts covering the stock has improved over the past four months.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company appears highly valued given the size of its balance sheet.
● For the last few months, analysts have been revising downwards their earnings forecast.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● 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.
