Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The group's activity appears highly profitable thanks to its outperforming net margins.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● The stock is in a well-established, long-term rising trend above the technical support level at 459.8 GBX


Weaknesses

● The stock is close to a major daily resistance at GBX 708, which should be gotten rid of so as to gain new appreciation potential.

● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company is not the most generous with respect to shareholders' compensation.

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.