Ratings Desktop S.A.

Equities

DESK3

BRDESKACNOR2

Market Closed - Sao Paulo Other stock markets 16:06:00 2024-05-14 EDT			5-day change	1st Jan Change
13.1 ^BRL	-1.50%		-0.53%	-7.22%

03-19	Desktop S.A. Reports Earnings Results for the Full Year Ended December 31, 2023	CI
2023	Desktop S.A. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2023	CI

Summary

The company presents an interesting fundamental situation from a short-term investment perspective.

Strengths

The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
Its low valuation, with P/E ratio at 7.47 and 7.45 for the ongoing fiscal year and 2025 respectively, makes the stock pretty attractive with regard to earnings multiples.
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.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

Weaknesses

The company's earnings growth outlook lacks momentum and is a weakness.
The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
Revenue estimates are regularly revised downwards for the current and coming years.
Over the past twelve months, analysts' consensus has been significantly revised downwards.
The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
The company's earnings releases usually do not meet expectations.

Ratings chart - Surperformance

Sector: Integrated Telecommunications Services

	1st Jan change	Capi.	ESG Refinitiv
DESKTOP S.A.	-7.22%	298M	-
CHINA MOBILE LIMITED	+13.73%	206B	B+
VERIZON COMMUNICATIONS	+7.40%	171B	C
DEUTSCHE TELEKOM AG	+1.20%	118B	A-
NIPPON TELEGRAPH AND TELEPHONE CORPORATION	-7.43%	86.23B	B-
CHINA TELECOM CORPORATION LIMITED	+18.45%	71.64B	B-
AMÉRICA MÓVIL, S.A.B. DE C.V.	+6.54%	62.59B	B
SAUDI TELECOM COMPANY	-5.82%	50.67B	B
CHARTER COMMUNICATIONS, INC.	-28.44%	39.56B	C
EMIRATES TELECOMMUNICATIONS GROUP COMPANY	-15.99%	39.16B	B

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes