The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
The company is in a robust financial situation considering its net cash and margin position.
With regards to fundamentals, the enterprise value to sales ratio is at 0.75 for the current period. Therefore, the company is undervalued.
Analysts covering this company mostly recommend stock overweighting or purchase.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
The group usually releases upbeat results with huge surprise rates.
Weaknesses
As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
The company does not generate enough profits, which is an alarming weak point.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 86.89 times its estimated earnings per share for the ongoing year.
In relation to the value of its tangible assets, the company's valuation appears relatively high.
For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
For the last few months, analysts have been revising downwards their earnings forecast.