● 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.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● The company returns high margins, thereby supporting business profitability.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● The opinion of analysts covering the stock has improved over the past four months.
Weaknesses
● The group shows a rather high level of debt in proportion to its EBITDA.
● The firm trades with high earnings multiples: 28 times its 2022 earnings per share.
● With an enterprise value anticipated at 5.3 times the sales for the current fiscal year, the company turns out to be overvalued.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The company is highly valued 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 price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.