● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The stock, which is currently worth 2023 to 0.35 times its sales, is clearly overvalued in comparison with peers.
● The company's share price in relation to its net book value makes it look relatively cheap.
● The company is one of the best yield companies with high dividend expectations.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Analyst opinion has improved significantly over the past four months.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● For the past year, analysts have significantly revised downwards their profit estimates.
● 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.