In a sector such as that of agricultural vehicles/machinery where CNH Industrial stands out in terms of capitalization, Tesmec asserts itself by taking the honor of being the best stock in its reference sector.
Since the beginning of the year, Tesmec is the only share, among its competitors, to be in positive territory with an increase of approximately 35%.
This increase is based on a good valuation of the stock based on market multiples. The security, in fact, appears to be undervalued whatever the indicator used. Looking at the price/earnings ratio, Tesmec’s prices appear to be undervalued by around 80%. If we then look at the relationship between price and turnover (PS), we discover that Tesmec stock is not only undervalued in absolute terms, given that the PS is equal to 0.4, but also by over 80% compared to its sector of reference. This level of undervaluation is also confirmed by the fair value calculated using the discounted cash flow method. In this case, in fact, the underestimation is estimated to be over 60%.
The liquidity index is greater than 1, so from this point of view the stock is well placed. The debt to capitalization ratio, on the other hand, is over 200%. We recall that the liquidity ratio of a company indicates its ability to meet short-term commitments using already liquid or liquid resources.
The best stock in its sector could continue to run on the Ftse Mib: the indications of the graphic analysis
The title Tesmec (MIL:TES) closed the session of 18 November at 0.1434 euro, up 1.41% on the previous session.
The current trend is bullish and has already exceeded the 1st price target in the 0.1386 euro area. However, after this exploit, the prices remained trapped within the trading range of 0.1386 euro – 0.1469 euro. Only the break of one of these two levels could give directionality to the quotations.
On the upside, the objectives are those indicated in the figure. On the downside, however, it could go to touch up the annual lows.