● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● From a short-term investment perspective, the company presents a deteriorated fundamental situation
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● The company is in a robust financial situation considering its net cash and margin position.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 33.18 times its estimated earnings per share for the ongoing year.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company appears highly valued given the size of its balance sheet.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● Revenue estimates are regularly revised downwards for the current and coming years.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.