Securitas shares reflect an interesting technical chart pattern from a medium term view In fact, the support at 141.25 SEK represents an important technical support area based on weekly price data that could limit downward movements by the stock.
Summary
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at SEK 141.25 SEK in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the SEK 140.7 support.
● The stock, which is currently worth 2019 to 0.64 times its sales, is clearly overvalued in comparison with peers.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
Weaknesses
● The company sustains low margins.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● Most analysts recommend that the stock should be sold or reduced.
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Securitas AB is a Sweden-based provider of security solutions, including specialized guarding, aviation security services and international security solutions, among others. It operates through five business segments. Security Services North America business segment offers security services in the United States, Canada and Mexico. Security Services Europe offers security services in 27 countries in Europe. Mobile and Monitoring provides mobile services, such as beat patrol and call-out services, and monitoring services, such as alarm surveillance for homes, and small and medium-sized businesses. Security Services Ibero-America provides security services in Latin America, Portugal and Spain. New Markets provides security services in the Middle East, Asia and Africa. The Company's subsidiaries include Selectron, Rentsec, Vamsa, Tehnomobil, Central de Alarmas Adler, Automatic Alarm, Suddeutsche Bewachung and Johnson & Thompson.