● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The stock is in a well-established, long-term rising trend above the technical support level at 27.12 AUD
Weaknesses
● Technically, the stock approaches a strong medium-term resistance at AUD 46.31.
● The group usually releases earnings worse than estimated.
● With an enterprise value anticipated at 5.7 times the sales for the current fiscal year, the company turns out to be overvalued.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 32.79 times its estimated earnings per share for the ongoing year.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.