SQLI ● In a short-term perspective, the company has interesting fundamentals.
Strengths
● 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.
● The stock, which is currently worth 2020 to 0.59 times its sales, is clearly overvalued in comparison with peers.
● For the past twelve months, EPS forecast has been revised upwards.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 19.1 EUR
Weaknesses
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The company sustains low margins.
● The group usually releases earnings worse than estimated.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 113.19 times its estimated earnings per share for the ongoing year.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
