Shionogi & Co., Ltd. : The trend should regain control
Entry price | Target | Stop-loss | Potential |
---|
JP¥7,273 |
JP¥7,700 |
JP¥6,900 |
+5.87% |
---|
The timing appears opportune to go long in shares of Shionogi & Co., Ltd. as we anticipate another pick-up in the underlying trend.
Summary● According to Refinitiv, the company's ESG score for its industry is good.
Strengths● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Sales forecast by analysts have been recently revised upwards.
● The opinion of analysts covering the stock has improved over the past four months.
Weaknesses● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● With an enterprise value anticipated at 3.66 times the sales for the current fiscal year, the company turns out to be overvalued.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.