● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
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.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the past twelve months, EPS forecast has been revised upwards.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
Weaknesses
● The company is in debt and has limited leeway for investment
● With a 2022 P/E ratio at 29.16 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The company's enterprise value to sales, at 5.39 times its current sales, is high.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.