RED HAT ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 51% by 2021.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
Weaknesses
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 58.23 and 50.26 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
