ALSTOM ● From a short-term investment perspective, the company presents a deteriorated fundamental configuration.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 102% by 2024.
● With regards to fundamentals, the enterprise value to sales ratio is at 0.89 for the current period. Therefore, the company is undervalued.
● The company appears to be poorly valued given its net asset value.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company sustains low margins.
● With an expected P/E ratio at 83.31 and 24 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● Over the past four months, analysts' average price target has been revised downwards significantly.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
