Carrefour : Expect the comeback of a strong trend
Entry price | Target | Stop-loss | Potential |
---|
€16.77 |
€18.5 |
€15.8 |
+10.35% |
---|
The price of Carrefour shares is range-bound. This phase will end sooner or later when volatility comes back.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.25 for the 2022 fiscal year.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
Weaknesses● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company has insufficient levels of profitability.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
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