● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● From a short-term investment perspective, the company presents a deteriorated fundamental situation
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● 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.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● With an expected P/E ratio at 41.55 and 31.77 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● For the last few months, analysts have been revising downwards their earnings forecast.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.