Shares in Prosegur Compañía de Seguridad, S.A. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The group usually releases upbeat results with huge surprise rates.
● The stock, which is currently worth 2021 to 0.7 times its sales, is clearly overvalued in comparison with peers.
● 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.
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 2.72.
● The company sustains low margins.
● 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, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● For the past year, analysts have significantly revised downwards their profit estimates.
Prosegur Compania de Seguridad SA is a Spain-based company engaged in the provision of security services. The Companyâs activities are divided into business segments: Integrated Security Solutions (ISS), Cash in Transit (CIT) and Alarms. The ISS division provides surveillance and protection of premises, property and persons, as well as activities related to technological security solutions. The CIT division offers transportation, storage, safekeeping, counting and classification of coins and banknotes, deeds, securities and other goods that require special protection. The Alarms division comprises installation and monitoring of home alarms. The Company operates through numerous subsidiaries in Europe, Latin America, Asia, Africa and Australia. It is controlled by Gubel SL.
PROSEGUR COMPAÑÍA DE SEGURIDAD, S.A. 
