Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● The share is getting closer to its long-term support in weekly data, at GBp 882.5, which offers good timing for buyers.

● The close medium term support offers good timing for purchasing the stock.

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● Its low valuation, with P/E ratio at 12.07 and 10.65 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.


Weaknesses

● The company is not the most generous with respect to shareholders' compensation.

● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

● 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 1188 GBp, the stock shows a negative configuration when looking looking at the weekly chart.