Shares in ENCE Energía y Celulosa, S.A. have recently benefitted from a regain of interest by market participants. The technical chart pattern suggests a continuation of the upward movement.
Summary
● On the basis of various fundamental qualitative criteria, the company appears to be particularly poorly ranked from a medium and long-term investment perspective.
● From a short-term investment perspective, the company presents a deteriorated fundamental situation
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company appears to be poorly valued given its net asset value.
● 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.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company has insufficient levels of profitability.
● The company is not the most generous with respect to shareholders' compensation.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● Over the past four months, analysts' average price target has been revised downwards significantly.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
● The group usually releases earnings worse than estimated.
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Ence Energia y Celulosa SA, formerly Grupo Empresarial ENCE SA, is a Spain-based company engaged in the operation of pulp mills. The Company' activities are divided into two business units: Pulp and Energy. The Pulp business unit is subdivided into three segments: Pulp, manufacturing pulp and pulp derivatives, such as lignin and biomass, as well as co-generating energy; Forest Management, providing forest crops and wood raw materials, and Forest Services & Other, including residual business activities, as well as forest support services. The Energy business unit focuses on generating energy using forestry and agricultural biomass, as well as, thermos and solar electric energy generation. The Company operates pulp mills and power generation plants in Spain.