RALLYE ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The group usually releases upbeat results with huge surprise rates.
● The stock, which is currently worth 2016 to 0.18 times its sales, is clearly overvalued in comparison with peers.
● Its low valuation, with P/E ratio at 5.27 and 4.13 for the ongoing fiscal year and 2017 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● Low profitability weakens the company.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
