● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company is highly valued given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.