The timing appears opportune to go long in shares of Orbia Advance Corporation, S.A.B. de C.V. as we anticipate another pick-up in the underlying trend.
Summary
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
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● This company will be of major interest to investors in search of a high dividend stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
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Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
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● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
Orbia Advance Corporation SAB de CV, formerly Mexichem SAB de CV, is a Mexico-based company engaged in the industrial sector. The Company's activities are divided into five business groups: Precision Agriculture, Building & Infrastructure, Fluor, Data Communication and Polymer Solutions. The Precision Agriculture business includes Netafim brand, which develops irrigation systems and related services, as well as offers technology for farming digitalization. The Building & Infrastructure business offers pipes for multiple building applications through Wavin brand. The Fluor business operates Koura brand, which manufactures fluorine-based materials used in such industries as healthcare, construction and transportation. The Data Communication business is responsible for production and installation of communication and power cables through Dura-Line brand. The Polymer Solutions business includes vestolit and alphagary brand names, which provides plastic resins and other compounds.