The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
Its low valuation, with P/E ratio at 6.7 and 6.7 for the ongoing fiscal year and 2024 respectively, makes the stock pretty attractive with regard to earnings multiples.
The company's share price in relation to its net book value makes it look relatively cheap.
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 last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
For several months, analysts have been revising their EPS estimates roughly upwards.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
The group usually releases upbeat results with huge surprise rates.
Weaknesses
One of the major weak points of the company is its financial situation.
The company's "enterprise value to sales" ratio is among the highest in the world.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
Over the past four months, analysts' average price target has been revised downwards significantly.