● 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.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● Its low valuation, with P/E ratio at 11.54 and 4.13 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company shows low valuation levels, with an enterprise value at 0.23 times its sales.
● The company appears to be poorly valued given its net asset value.
● The company has a low valuation given the cash flows generated by its activity.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● Low profitability weakens the company.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield 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.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
● The company's earnings releases usually do not meet expectations.