The recent downturn has taken Bureau Veritas SA shares close to a medium term support level around 25.58 EUR. The timing for a long trade in the stock appears good.
Summary
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company's profit outlook over the next few years is a strong asset.
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
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Bureau Veritas SA is No. 1 worldwide in providing compliance evaluation and certification services applied to the quality, safety, health, environment and social responsibility fields. The group's activity consists of inspecting, analyzing, auditing, and certifying products, assets (buildings, industrial infrastructures, equipment, ships, etc.) and management systems (primarily ISO standards) compared to regulatory or volunteering reference standards. Net sales break down by activity as follows:
- industry and infrastructures (79.1%): analysis and control of hygiene, safety and environment, inspection and certification of industrial equipment, verification of construction compliance, certification of management systems,
- consumer goods (12.8%);
- marine (8.1%): inspection and classification of ships.
At the end of 2024, the group owns a network of nearly 1,600 offices and laboratories worldwide.
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.
