● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The share is getting closer to its long-term support in weekly data, at EUR 4.92, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company is in a robust financial situation considering its net cash and margin position.
● The group usually releases upbeat results with huge surprise rates.
● The company shows low valuation levels, with an enterprise value at 0.51 times its sales.
● With a P/E ratio at 7.44 for the current year and 6.36 for next year, earnings multiples are highly attractive compared with competitors.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● Revenue estimates are regularly revised downwards for the current and coming years.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.
● Below the resistance at 7.37 EUR, the stock shows a negative configuration when looking looking at the weekly chart.