SURGUTNEFTEGAS ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● 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.
● The company shows low valuation levels, with an enterprise value at 81.94 times its sales.
● Its low valuation, with P/E ratio at 155.02 and 1189.23 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● 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 is not the most generous with respect to shareholders' compensation.
● 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.
● Analysts covering the stock have recently lowered their earnings forecast.
