● The company usually posts poor financials for mid or long term investments.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at EUR 4.96, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.41 for the 2017 fiscal year.
● 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.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● Low profitability weakens the company.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's earnings releases usually do not meet expectations.
● The company is not the most generous with respect to shareholders' compensation.
● For the past year, analysts have significantly revised downwards their profit estimates.