The recent downturn has taken SPIE SA shares close to a medium term support level around 29.98 EUR. The timing for a long trade in the stock appears good.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.68 for the 2024 fiscal year.
● The company has a low valuation given the cash flows generated by its activity.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● 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 a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company does not generate enough profits, which is an alarming weak point.
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SPIE SA specializes in providing multi-technical services in the electrical, mechanical and climatic engineering, communication systems fields as well as specialized service related to energy. The group ensures the design, implementation, operation and maintenance of energy saving and environmentally friendly facilities.
Net sales are distributed geographically as follows: France (35%), Germany (32.1%), the Netherlands (16.5%) and other (16.4%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
