● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● Its low valuation, with P/E ratio at 3.65 and 4.34 for the ongoing fiscal year and 2023 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.27 for the 2022 fiscal year.
● The company's share price in relation to its net book value makes it look relatively cheap.
● The company has a low valuation given the cash flows generated by its activity.
● The company is one of the best yield companies with high dividend expectations.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● Over the past twelve months, analysts' opinions have been revised negatively.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.