● The company has solid fundamentals for a short-term investment strategy.
Strengths
● As regards fundamentals, the enterprise value to sales ratio is at 0.98 for the current period. Therefore, the company is undervalued.
● With a P/E ratio at 11.93 for the current year and 11.82 for next year, earnings multiples are highly attractive compared with competitors.
● The company is one of the best yield companies with high dividend expectations.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● According to Standard & Poor's' 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
● The company's earnings releases usually do not meet expectations.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.