● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Its low valuation, with P/E ratio at 3.65 and 7.76 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The company is not the most generous with respect to shareholders' compensation.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.