VALEO ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.74 for the 2018 fiscal year.
● With a P/E ratio at 12.91 for the current year and 11.1 for next year, earnings multiples are highly attractive compared with competitors.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 58.6 EUR
