● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company benefits from high valuations in earnings multiples.
● The company's enterprise value to sales, at 4.23 times its current sales, is high.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● 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, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.