● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● Its low valuation, with P/E ratio at 8.12 and 7.46 for the ongoing fiscal year and 2023 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.42 for the 2022 fiscal year.
● The company's share price in relation to its net book value makes it look relatively cheap.
● The company has a low valuation given the cash flows generated by its activity.
Weaknesses
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company does not generate enough profits, which is an alarming weak point.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.