● 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
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Sales forecast by analysts have been recently revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● With an expected P/E ratio at 62.45 and 61.23 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company appears highly valued given the size of its balance sheet.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.