Spanish stock alert

SPAIN

CLOSING UPDATE: Faes Farma increases 1.7% - outperforming 89% of stocks 18 October 2017 19:21 CEST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's Spanish market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Faes Farma, Spain's 2nd largest biotechnology company by market capitalisation, has increased 5.0c (or 1.7%) today to trade at EUR2.98 and has outperformed 89% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the IBEX 35 Index which rose 56.6 points (or 0.6%) in the day, this represented a relative price increase of 1.2%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.02 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings/Growth of 1.86 [5.1]

+ Dividend yield of 3.6% [1.4%]

+ Return on Assets 11% [5.6%]

+ Return on Capital Employed 15.7% [10.7%]

+ Year-on-Year Earnings Growth of 17.6% [3.9%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 0.9 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 14.7% in the last 3 years. This is better than the sector average of 13.5% and suggests a high margin of safety.

Note

Faes Farma today is at a discount of 20.0% to the 12-month high of EUR3.72 on 10 Jan, 2017. It is at a premium of 15.8% to the 12-month low of EUR2.57 on 11 Aug, 2017.

Bearish Signals:

In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend.

Tobin's Q Ratio is 2.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

As per the Du Pont analysis, Return on Equity of 12.8% is lower than sector average of 14.3%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 3.4 [2.6]

Return on Equity 12.8% [14.3%]

TODAY'S ALERTS

Afternoon Alert: Faes Farma in 3rd consecutive rise, nears one-month high

18 October 2017 14:41 CEST

Faes Farma SA (MA:FAE) extended its gains Wednesday, rising an additional 2.50c (or 0.9%) to trade at EUR2.95. The stock increased 0.18% on Monday and 4.09% on Tuesday bringing its 3-day rise to 5.2%. It is now approaching its 28-day high of EUR2.99.

Morning Alert: Faes Farma in 3rd consecutive rise, nears one-month high

18 October 2017 11:38 CEST

Faes Farma SA (MA:FAE) extended its gains Wednesday, rising an additional 4.0c (or 1.4%) to trade at EUR2.96. The stock increased 0.18% on Monday and 4.09% on Tuesday bringing its 3-day rise to 5.7%. It is now approaching its 28-day high of EUR2.99.

Faes Farma SA (MA:FAE; MCE:FAE; MC:FAE; SM:FAE)

ISIN: ES0134950F36

PermID: 4295889471

Source: www.BuySellSignals.com