The ABEO SA share is coming back to a technical support zone comprising the lower bound of the trading range. This provides a good timing to go long on the stock.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● With regards to fundamentals, the enterprise value to sales ratio is at 0.94 for the current period. Therefore, the company is undervalued.
● The company appears to be poorly valued given its net asset value.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Weaknesses
● The company does not generate enough profits, which is an alarming weak point.
● The group shows a rather high level of debt in proportion to its EBITDA.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● The group usually releases earnings worse than estimated.
ABEO SA specializes in the design, manufacture and marketing of sports and leisure equipment. The group supports its professional clients (specialized sports halls and clubs, leisure centers, education sector, local authorities, building professionals, etc.) in the implementation of their projects. ABEO SA owns a portfolio of brands that are partners of sports federations and present at major sporting events, including the Olympic Games. Net sales break down by family of products as follows:
- gymnastics, team sports and physical training equipment (52%): gymnastic equipment, carpets, landing mats, training and competition gear, etc. (Bosan, Cannice, Erhard Sport, Gymnova, Janssen-Fritsen, Schelde Sport, Spieth Gymnastics and Sportsafeuk brands);
- changing rooms and sanitary equipment (27.5%): toilet cubicles, lockers and cabinets, shower walls, benches and coat racks, wall cladding, etc. (France Equipement, Meta, Navic, Prospec, Sanitec and Suffixe brands);
- walls, play modules and climbing equipment (20.5%): Entre-Prises, Top 30, Dock 39 and Clip'N Climb.
At the end of March 2023, the group operated 18 production sites located in France (5), Europe (8), the United States (3), China, and Canada.
Net sales are distributed geographically as follows: France (31.7%), European Union (41.8%), Europe (11.6%), America (14.1%) and Asia (0.8%).
ABEO SA 
