SAVENCIA ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.27 for the 2020 fiscal year.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● 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 past year, analysts have regularly revised upwards their sales forecast for the company.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 57.
● The company does not generate enough profits, which is an alarming weak point.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● 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.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 57 EUR
