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
Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 65% by 2026.
The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
The group's high margin levels account for strong profits.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
For several months, analysts have been revising their EPS estimates roughly upwards.
Analysts covering this company mostly recommend stock overweighting or purchase.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 33.66 times its estimated earnings per share for the ongoing year.
With an enterprise value anticipated at 4.82 times the sales for the current fiscal year, the company turns out to be overvalued.
In relation to the value of its tangible assets, the company's valuation appears relatively high.
The valuation of the company is particularly high given the cash flows generated by its activity.