The underlying tendency is to the upside for shares in Wacom Co., Ltd. and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● 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
● The share is getting closer to its long-term support in weekly data, at JPY 670, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the JPY 655 support.
● The company is in a robust financial situation considering its net cash and margin position.
● As regards fundamentals, the enterprise value to sales ratio is at 0.94 for the current period. Therefore, the company is undervalued.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The tendency within the weekly time frame is positive above the technical support level at 670 JPY
Weaknesses
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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Wacom Co Ltd is a Japan-based company mainly engaged in the development, manufacturing, and sale of brand products and technology solution products, as well as service operations. The Company operates through two business segments. The Technology Solutions segment is engaged in the provision of digital pens, sensors, touch panel components and modules. They are used for mobile devices such as tablet computers, e-books and mobile terminals. The Branded Products segment provides three kinds of services. Creative business provides pen tablets, mobiles and displays. The consumer business provides stylus pens, smart pads, and digital stationery. They are mainly used for illustration and memo making on digital terminals. Business solutions provides pen tablets. They are mainly used in the fields of education, medical care, and digital signatures.