December 21, 2023
Top 10 Stock ASM Intl Hold 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 ASM Intl Hold

360 METRICS	December 21, 2023
VALUE
VALUE	16
GROWTH
GROWTH	66
SAFETY
SAFETY	66
SENTIMENT
SENTIMENT	64
360° VIEW
360° VIEW	48

ANALYSIS: With an Obermatt 360° View of 48 (better than 48% compared with alternatives), overall professional sentiment and financial characteristics for the stock ASM Intl are below the industry average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for ASM Intl. The consolidated Growth Rank has a good rank of 66, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 66% of competitors in the same industry. The consolidated Safety Rank at 66 means that the company has a financing structure that is safer than 66% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 64, which means that professional investors are more optimistic about the stock than for 64% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 16, meaning that the share price of ASM Intl is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 84% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 48, ASM Intl is worse than 52% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 66), a safe financing structure (Safety Rank of 66), and positive professional market sentiment (Sentiment Rank of 64), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of ASM Intl compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (66% better than peers). The value rank could be the reverse reflection of that (34%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for ASM Intl positive

SENTIMENT METRICS	December 21, 2023
ANALYST OPINION
ANALYST OPINION	47
OPINIONS CHANGE
OPINIONS CHANGE	54
PRO HOLDINGS
PRO HOLDINGS	43
MARKET PULSE
MARKET PULSE	85
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	64

ANALYSIS: With an Obermatt Sentiment Rank of 64 (better than 64% compared with alternatives), overall professional sentiment and engagement for the stock ASM Intl is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and above average for ASM Intl. Analyst Opinions are at a rank of 47 (worse than 53% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 54 which means that stock research experts are changing their opinions for the better. In other words, they are getting more optimistic of stock investments in ASM Intl. Market Pulse is also positive with a rank of 85, which means that the current professional news and professional social networks are positive in their discussions about this company (more positive news than for 85% of competitors). Only professional investors tend to be absent with a Professional Investors rank of 43, which means that professional investors hold less stock in this company than in 57% of alternative investment opportunities. Pros tend to invest in other companies. But that could also be due to the size of the company. Professional investors tend to invest in XL and XXL companies. If the company is smaller than that, that fact alone may explain why there are fewer pros present. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 64 (more positive than 64% compared with investment alternatives), ASM Intl has a reputation among professional investors that is above-average compared with that of its competitors. Since analysts are getting more optimistic and the professional communication channels are positive, it may be an indication of a company that has the difficult times behind it or the stocks’ value is improving. For medium to smaller companies, the positive sentiment indicators outshine the negative. ...read more

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Value Strategy: ASM Intl Stock Price Value low

VALUE METRICS	December 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	15
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	7
DIVIDEND YIELD
DIVIDEND YIELD	41
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	16

ANALYSIS: With an Obermatt Value Rank of 16 (worse than 84% compared with alternatives), ASM Intl shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for ASM Intl. Price-to-Sales is 11 which means that the stock price compared with what market professionals expect for future profits is higher than 89% of comparable companies, indicating a low value concerning ASM Intl's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 7, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of ASM Intl. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 15 and Dividend Yield, which is lower than 59% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 16, is a sell recommendation based on ASM Intl's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for ASM Intl? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as ASM Intl? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. ASM Intl may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more

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Growth Strategy: ASM Intl Growth Momentum good

GROWTH METRICS	December 21, 2023
REVENUE GROWTH
REVENUE GROWTH	74
PROFIT GROWTH
PROFIT GROWTH	48
CAPITAL GROWTH
CAPITAL GROWTH	27
STOCK RETURNS
STOCK RETURNS	94
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	66

ANALYSIS: With an Obermatt Growth Rank of 66 (better than 66% compared with alternatives), ASM Intl shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for ASM Intl. Sales Growth has a rank of 74 which means that currently professionals expect the company to grow more than 74% of its competitors. Stock Returns are also above average with a rank of 94. But Capital Growth has only a rank of 27, which means that currently professionals expect the company to grow its invested capital less than 73% of its competitors. Profit Growth is also low, with a rank of only 48, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 66, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 94% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. ...read more

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Safety Strategy: ASM Intl Debt Financing Safety above-average

SAFETY METRICS	December 21, 2023
LEVERAGE
LEVERAGE	91
REFINANCING
REFINANCING	12
LIQUIDITY
LIQUIDITY	87
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	66

ANALYSIS: With an Obermatt Safety Rank of 66 (better than 66% compared with alternatives), the company ASM Intl 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 ASM Intl 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, with two out of three indicators above average for ASM Intl. Leverage is at a rank of 91, meaning the company has a below-average debt-to-equity ratio. It has less debt than 91% of its competitors. Liquidity is also good at a rank of 87, meaning the company generates more profit to service its debt than 87% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 12, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 66 (better than 66% compared with alternatives), ASM Intl has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for ASM Intl. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: ASM Intl Below-Average Financial Performance

COMBINED PERFORMANCE	December 21, 2023
VALUE
VALUE	16
GROWTH
GROWTH	66
SAFETY
SAFETY	87
COMBINED
COMBINED	45

ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), ASM Intl (Semiconductor Equipment, Netherlands) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of ASM Intl are low in value (priced high) with a consolidated Value Rank of 16 (worse than 84% of alternatives). But they show above-average growth (Growth Rank of 66) and are safely financed (Safety Rank of 66, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on ASM Intl's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company ASM Intl exhibits low value (Obermatt Value Rank of 16), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 66). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 66) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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