(STG) Scandinavian Tobacco - Ratings and Ratios

Scandinavian Tobacco Group A/S is a multinational tobacco company with a rich history dating back to 1750. Headquartered in Gentofte, Denmark, the company has established itself as a leading player in the global tobacco industry, offering a diverse range of products including pipe and fine-cut tobacco, machine-rolled and handmade cigars, and nicotine pouches. With a robust portfolio of brands such as Macanudo, CAO, and Cohiba, STG caters to a wide customer base across North America, Europe, and beyond.

The companys extensive product lineup is marketed through various channels, including wholesale, online, catalogue, and retail, as well as business-to-business transactions. In addition to its branded products, STG also offers contract manufacturing services for third-party clients and sells accessories. This diversified business model enables the company to maintain a strong presence in the market and adapt to changing consumer preferences.

From a technical analysis perspective, STGs stock price has been trending downwards, with the current price of 86.80 being below its 20-day, 50-day, and 200-day moving averages. The Average True Range (ATR) of 2.20 indicates a moderate level of volatility, with a potential price swing of 2.54%. Given the current technical setup, it is likely that the stock will continue to experience downward pressure in the short term.

However, a review of STGs fundamental data reveals a more positive outlook. With a market capitalization of 6676.68M DKK and a price-to-earnings ratio of 8.00, the company appears to be undervalued relative to its earnings. The return on equity (RoE) of 8.98% suggests that STG is generating healthy profits for its shareholders. Based on these fundamental indicators, it is possible that the stock may experience a rebound in the longer term.

Forecasting STGs stock price using a combination of technical and fundamental analysis, we can expect the stock to potentially trade within the range of 85-95 in the short term, driven by the current downward trend. However, as the companys fundamental strengths become more apparent, we may see a gradual recovery in the stock price, potentially reaching 100 or more in the longer term, driven by the companys stable earnings and dividend yield. A key level to watch is the 52-week low of 83.00, which may provide support for the stock price. Conversely, a break above the 52-week high of 100.42 could signal a significant upward trend.