● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.32 for the 2023 fiscal year.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Sales forecast by analysts have been recently revised upwards.
● For the past twelve months, EPS forecast has been revised upwards.
● The opinion of analysts covering the stock has improved over the past four months.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company does not generate enough profits, which is an alarming weak point.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● 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 price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.