Ferronordic AB (publ) is close to a major resistance level, whereby the breach of this level could be considered as a buy signal. This reflects our preferred scenario in light of the stock's current technical chart pattern.
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.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company shows low valuation levels, with an enterprise value at 0.8 times its sales.
● This company will be of major interest to investors in search of a high dividend stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Weaknesses
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The group usually releases earnings worse than estimated.
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Ferronordic AB is a Sweden-based company engaged in sales and distribution of construction equipment. It operates as an authorized dealer of Volvo Construction Equipment, Renault trucks and Volvo CE. Additionally, it distributes Volvo and Renault Trucks, Volvo Penta, among others. Through its business segment, Equipment Distribution, the Company offers sale and rental of new and used machines and other equipment, contracting services, as well as aftermarket support (sales of parts and service). The Company distributes excavators, backhoe loaders, dump trucks, pipelayers, forestry machines, bulldozers and gensets. The Company provides its services to other companies in the Quarries and aggregates, mining, road construction, transport and logistic and general construction industries