● 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.
Strengths
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company is highly valued given the cash flows generated by its activity.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.