● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● The company's profit outlook over the next few years is a strong asset.
● The company is in a robust financial situation considering its net cash and margin position.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the past twelve months, EPS forecast has been revised upwards.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● 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.