● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
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Strengths
● The company returns high margins, thereby supporting business profitability.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The stock, which is currently worth 2021 to 0.71 times its sales, is clearly overvalued in comparison with peers.
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● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
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Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
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● 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 company's earnings releases usually do not meet expectations.