● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● Its low valuation, with P/E ratio at 8.25 and 9.86 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The stock, which is currently worth 2021 to 0.74 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.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● 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 valuation of the company is particularly high given the cash flows generated by its activity.
● Over the past twelve months, analysts' opinions have been revised negatively.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.