Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 50% by 2022.

● The company is in a robust financial situation considering its net cash and margin position.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

● The stock is in a well-established, long-term rising trend above the technical support level at 44.25 BRL


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at BRL 69.17.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● With an expected P/E ratio at 68.39 and 57.14 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● The company is not the most generous with respect to shareholders' compensation.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.