The company has poor fundamentals for a short-term investment strategy.
Strengths
Graphically speaking, the timing seems perfect for purchasing the stock close to the JPY 903 support.
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 43% by 2022.
The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
The stock is in a well-established, long-term rising trend above the technical support level at 903 JPY
Weaknesses
Low profitability weakens the company.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The company is not the most generous with respect to shareholders' compensation.
For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
For the past year, analysts have significantly revised downwards their profit estimates.