The recent downward movement has sent Austevoll Seafood ASA shares back to attractive levels situated around 70.8 NOK. This zone could put an end to the downward movement and offers a good timing for new long positions.
Strengths
● With regards to fundamentals, the enterprise value to sales ratio is at 0.65 for the current period. Therefore, the company is undervalued.
● The company appears to be poorly valued given its net asset value.
● The company has a low valuation given the cash flows generated by its activity.
● This company will be of major interest to investors in search of a high dividend stock.
● Over the last twelve months, the sales forecast has been frequently revised 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 currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 61.11 times its estimated earnings per share for the ongoing year.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
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Austevoll Seafood ASA (AUSS) is a Norway-based holding company. The Company is involved in pelagic operations within fisheries, production of fishmeal and fish oil, and frozen pelagic consumer products. The Company has sales operations in Norway, Europe, Asia, the USA and South America. Its activities are divided into operating segments and reflect its portfolio companies: Leroey Seafood Group ASA, which is involved in fish farming; Austral Group S.A.A., that is engaged in the production of fishmeal, fish oil, canned fish and frozen fish; Foodcorp Chile S.A., that is engaged in production of frozen fish, canned fish, fishmeal and fish oil.; Br. Birkeland AS, that holds pelagic fishing licences utilised by two purse-seiner fishing vessels; Br. Birkeland Farming AS, that holds seven salmon farming licences in the Western Region of Norway and the joint venture Pelagia Holding AS, that is engaged in production of fishmeal, fish oil, Omega-3 oil and frozen fish for direct human consumption.