M3, Inc. : Good timing to anticipate a continuation of the trend

11/24/2020 | 08:20am EST

Jordan Dufee

long trade Target price hit

Entry price : 8242¥ | Target : 10000¥ | Stop-loss : 7200¥ | Potential : 21.33%

Shares in M3, Inc. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good. Investors have an opportunity to buy the stock and target the ¥ 10000.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

Strengths

• According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
• The group's activity appears highly profitable thanks to its outperforming net margins.
• Thanks to a sound financial situation, the firm has significant leeway for investment.
• Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
• Over the last twelve months, the sales forecast has been frequently revised upwards.
• For several months, analysts have been revising their EPS estimates roughly upwards.
• For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• The tendency within the weekly time frame is positive above the technical support level at 4455 JPY

Weaknesses

• Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
• Based on current prices, the company has particularly high valuation levels.
• The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 167.52 times its estimated earnings per share for the ongoing year.
• The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
• The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

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