● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The company shows low valuation levels, with an enterprise value at 0.42 times its sales.
● With a P/E ratio at 14.48 for the current year and 12.2 for next year, earnings multiples are highly attractive compared with competitors.
● The company is one of the best yield companies with high dividend expectations.
● The stock is in a well-established, long-term rising trend above the technical support level at 1.72 EUR
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The company sustains low margins.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the past year, analysts have significantly revised downwards their profit estimates.