An exit from the recently observed accumulation phase to the upside could allow for the assumption that a clear upward trend is re-established with an increase in volatility.
Summary
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Over the past four months, analysts' average price target has been revised upwards significantly.
Weaknesses
● With an expected P/E ratio at 42.11 and 38.17 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● 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 company is not the most generous with respect to shareholders' compensation.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
● 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.
● The company's earnings releases usually do not meet expectations.
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IMCD N.V. is one of the world's leaders in the distribution of specialty chemicals and food ingredients. The group's activity is organized primarily around 8 markets:
- house cleaning and maintenance products and textile products: surfactants, abrasives, bleaching agents, dyes, solubilizing agents, functional additives, etc.;
- pharmaceutical products: excipients, active pharmaceutical ingredients, solvents, formulation intermediates and chemical synthesis, etc.;
- personal care products: dyes, rheology modifiers, active and functional and sensory ingredients, sunscreen agents, antioxidants, exfoliants, preservatives, etc.;
- coating products: additives, pigments, resins and special solvents;
- nutritional and food products: acids, emulsifiers, oils, fibers, preservatives, sweeteners, enzymes, plant extracts, etc.;
- lubricants: additives, silicone derivatives, esters, corrosion inhibitors, markers, surfactants, etc.;
- chemical products synthesis: monomers, catalysts, reactive diluents, solvents and additives;
- plastic products: mixers, thermoplastic elastomers, polyurethanes, composite materials, etc.
Net sales break down geographically as follows: the Netherlands (1.5%), Europe/Middle East/Africa (42.2%), Asia/Pacific (24.5%), North America (22.3%), and Latin America (9.5%).