● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
Strengths
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Its low valuation, with P/E ratio at 9.52 and 10.75 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The company is in debt and has limited leeway for investment
● 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.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● Below the resistance at 8.99 EUR, the stock shows a negative configuration when looking looking at the weekly chart.