The support at 43 EUR, which is currently being tested, should allow voestalpine AG shares to move back to the upside.
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
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The group usually releases upbeat results with huge surprise rates.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● This company will be of major interest to investors in search of a high dividend stock.
● 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.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
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Voestalpine AG is one of the European largest steel makers. Net sales break down by family of products as follows:
- flat steel (32.6%): hot and cold laminated steel, galvanized steel, sheet metal, etc.;
- long steel (21%): steering systems, rods, non-welded tubes, etc.;
- special steel (18.9%);
- steel components (18.6%);
- other (8.9%).
Net sales break down by market into automotive (31.6%), oil industry (15.4%), rail transportation (10.3%), construction (10.1%), civil and mechanical engineering (10%), household appliances (4.4%), aerospace (2.2%) and other (16%).
Net sales are distributed geographically as follows: Austria (7.5%), Europe (54.5%), North America (17.2%), Asia (6.9%), South America (4.6%) and others (9.3%).