PEUGEOT SA ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The company is in a robust financial situation considering its net cash and margin position.
● The stock, which is currently worth 2020 to 0.14 times its sales, is clearly overvalued in comparison with peers.
● Its low valuation, with P/E ratio at 8.9 and 5.15 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● This company will be of major interest to investors in search of a high dividend stock.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 16.38.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The underlying tendency is negative on the weekly chart below the resistance at 16.38 EUR
