The recent downward movement has sent Sartorius Stedim Biotech shares back to attractive levels situated around 288.3 EUR. This zone could put an end to the downward movement and offers a good timing for new long positions. Investors have an opportunity to buy the stock and target the € 350.
Summary
From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
Strengths
Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
The company is in a robust financial situation considering its net cash and margin position.
Analysts covering this company mostly recommend stock overweighting or purchase.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 35.56 times its estimated earnings per share for the ongoing year.
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.
The valuation of the company is particularly high given the cash flows generated by its activity.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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.
The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
For the last few months, analysts have been revising downwards their earnings forecast.
Over the past four months, analysts' average price target has been revised downwards significantly.
The group usually releases earnings worse than estimated.
Ratings chart
Subsector Other Medical Equipment, Supplies & Distribution
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