In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
Strengths
The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
This company will be of major interest to investors in search of a high dividend stock.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
The group usually releases earnings worse than estimated.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
Analysts covering the stock have recently lowered their earnings forecast.
For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
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 underlying tendency is negative on the weekly chart below the resistance at 4.13 EUR
Ratings chart
Sector Integrated Telecommunications Services - NEC