● 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
● The prospective high growth for the next fiscal years is among the main assets of the company
● Historically, the company has been releasing figures that are above expectations.
● As regards fundamentals, the enterprise value to sales ratio is at 1.13 for the current period. Therefore, the company is undervalued.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The stock is in a well-established, long-term rising trend above the technical support level at 2347 GBX
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at GBX 5412.
● The company does not generate enough profits, which is an alarming weak point.
● The firm trades with high earnings multiples: 41.33 times its 2021 earnings per share.