Sodexo : A good level to buy
Entry price | Target | Stop-loss | Potential |
---|
€94.5 |
€100 |
€91 |
+5.82% |
---|
Sodexo shares are closing back in on major support levels around 92.1 EUR based on daily price data, which could offer attractive entry points.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths● With regards to fundamentals, the enterprise value to sales ratio is at 0.65 for the current period. Therefore, the company is undervalued.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
Weaknesses● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company does not generate enough profits, which is an alarming weak point.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
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