● From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● 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.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● Low profitability weakens the company.
● The company appears highly valued given the size of its balance sheet.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's 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.