September 28, 2023
Top 10 Stock Sumitomo Metal Mining Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Sumitomo Metal Mining Buy

360 METRICS	September 28, 2023
VALUE
VALUE	54
GROWTH
GROWTH	29
SAFETY
SAFETY	74
SENTIMENT
SENTIMENT	66
360° VIEW
360° VIEW	59

ANALYSIS: With an Obermatt 360° View of 59 (better than 59% compared with alternatives), overall professional sentiment and financial characteristics for the stock Sumitomo Metal Mining are above average. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for Sumitomo Metal Mining. The consolidated Value Rank has an attractive rank of 54, which means that the share price of Sumitomo Metal Mining is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 54% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 74. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 66. But the consolidated Growth Rank has a low rank of 29, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 71 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 59, Sumitomo Metal Mining is better positioned than 59% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 54), secure financing practices (Safety Rank of 74), and positive market sentiment in the professional investor community (Sentiment Rank of 66). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 29), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of Sumitomo Metal Mining is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Sumitomo Metal Mining positive

SENTIMENT METRICS	September 28, 2023
ANALYST OPINION
ANALYST OPINION	33
OPINIONS CHANGE
OPINIONS CHANGE	35
PRO HOLDINGS
PRO HOLDINGS	65
MARKET PULSE
MARKET PULSE	82
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	66

ANALYSIS: With an Obermatt Sentiment Rank of 66 (better than 66% compared with alternatives), overall professional sentiment and engagement for the stock Sumitomo Metal Mining is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Sumitomo Metal Mining. Analyst Opinions are at a rank of 33 (worse than 67% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. Worse, Analyst Opinions Change has a rank of 35, which means that stock research experts are getting even more pessimistic. Other sentiment indicators are positive: The Professional Investors rank is 65, which means that professional investors hold more stock in this company than in 65% of alternative investment opportunities. So, pros tend to favor investing in this company. In addition, Market Pulse has a rank of 82, which means that the current professional news and professional social networks tend to be positive when discussing this company (more positive news than for 82% of competitors). While stock research analysts are getting ever more critical, many professional investors are committed to Sumitomo Metal Mining and the professional news channels are on the positive side. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 66 (more positive than 66% compared with investment alternatives), Sumitomo Metal Mining has a reputation among professional investors that is above-average compared with that of its competitors. This is an ambiguous picture: analysts are negative and getting even more critical, while the news in the market is positive. Who should investors believe? This is a difficult question in such a situation. Investors should proceed cautiously and verify not only the financial performance in the Obermatt Value, Growth and Safety Ranks but also independent news coverage of the company. ...read more

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Value Strategy: Sumitomo Metal Mining Stock Price Value better than average

VALUE METRICS	September 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	56
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	29
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	79
DIVIDEND YIELD
DIVIDEND YIELD	34
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	54

ANALYSIS: With an Obermatt Value Rank of 54 (better than 54% compared with alternatives), Sumitomo Metal Mining shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Sumitomo Metal Mining. Price-to-Sales (P/S) is 56, which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value concerning Sumitomo Metal Mining's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 79% of alternatives (21% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 34 are lower than average (dividends are expected to be lower than 66% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 29, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 54, is a buy recommendation based on Sumitomo Metal Mining's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Sumitomo Metal Mining may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). ...read more

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Growth Strategy: Sumitomo Metal Mining Growth Momentum low

GROWTH METRICS	September 28, 2023
REVENUE GROWTH
REVENUE GROWTH	66
PROFIT GROWTH
PROFIT GROWTH	8
CAPITAL GROWTH
CAPITAL GROWTH	31
STOCK RETURNS
STOCK RETURNS	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	29

ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% compared with alternatives), Sumitomo Metal Mining shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Sumitomo Metal Mining. While Sales Growth ranks at 66, professionals currently expect the company to grow more than 66% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 8, which means that, currently, professionals expect the company to grow its profits less than 92% of its competitors, and Capital Growth has a low rank of 31. Historic stock returns were also below average with a current Stock Returns rank of 45 which means that the stock returns have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. ...read more

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Safety Strategy: Sumitomo Metal Mining Debt Financing Safety above-average

SAFETY METRICS	September 28, 2023
LEVERAGE
LEVERAGE	60
REFINANCING
REFINANCING	61
LIQUIDITY
LIQUIDITY	74
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	74

ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% compared with alternatives), the company Sumitomo Metal Mining has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Sumitomo Metal Mining is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Sumitomo Metal Mining. Leverage is at 60, meaning the company has a below-average debt-to-equity ratio. It has less debt than 60% of its competitors. Refinancing is at a rank of 61, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 61% of its competitors. Finally, Liquidity is also good at a rank of 74, which means that the company generates more profit to service its debt than 74% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 74 (better than 74% compared with alternatives), Sumitomo Metal Mining has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Sumitomo Metal Mining Below-Average Financial Performance

COMBINED PERFORMANCE	September 28, 2023
VALUE
VALUE	54
GROWTH
GROWTH	29
SAFETY
SAFETY	74
COMBINED
COMBINED	49

ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Sumitomo Metal Mining (Diversified Metals & Mining, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Sumitomo Metal Mining are a good value (attractively priced) with a consolidated Value Rank of 54 (better than 54% of alternatives), are safely financed (Safety Rank of 74, which means low debt burdens), but show below-average growth (Growth Rank of 29). ...read more

RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Sumitomo Metal Mining's financial characteristics. As the company Sumitomo Metal Mining's key financial metrics exhibit good value (Obermatt Value Rank of 54) but low growth (Obermatt Growth Rank of 29) while being safely financed (Obermatt Safety Rank of 74), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 54% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more

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