STHREE PLC ● 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.
Strengths
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.33 for the 2019 fiscal year.
● With a P/E ratio at 11.4 for the current year and 10.66 for next year, earnings multiples are highly attractive compared with competitors.
● The company is one of the best yield companies with high dividend expectations.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 308.5 GBp
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at GBp 379.
● The company sustains low margins.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
