September 7, 2023
Top 10 Stock BBVA Sell 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 BBVA Sell

360 METRICS	September 7, 2023
VALUE
VALUE	31
GROWTH
GROWTH	33
SAFETY
SAFETY	46
SENTIMENT
SENTIMENT	35
360° VIEW
360° VIEW	22

ANALYSIS: With an Obermatt 360° View of 22 (better than 22% compared with alternatives), overall professional sentiment and financial characteristics for the stock BBVA are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with all four indicators below average for BBVA. The consolidated Value Rank has a low rank of 31 which means that the share price of BBVA is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 69% of alternative stocks in the same industry. The consolidated Growth Rank also has a low rank of 33, which means that the company exhibits below-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 lower than for 33% of competitors in the same industry. The consolidated Safety Rank has a riskier rank of 46, which means that the company has a riskier financing structure than 54% 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 low rank of 35, which means that professional investors are more pessimistic about the stock than for 65% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 22, BBVA is worse than 78% of all alternative stock investment opportunities based on the Obermatt Method. This means that BBVA shares are on the riskier side for investors. As all consolidated Obermatt Ranks are below-average, this is a risky stock investment proposition, especially since professional investor sentiment, the consolidated Obermatt Sentiment Rank, is also low at 35. The negative market view on BBVA may stem from the high stock price (low value), the low level of growth, or the risky financing structures. That's several problems with no good news anywhere. Based on the current information, we don’t see any compelling arguments to make a case for this stock investment. The company may have a strong future which would justify the high stock price, but this is not confirmed by investor behavior today. While BBVA may have a bright future, it is reflected in neither the financial indicators nor the market sentiment. ...read more

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Sentiment Strategy: Professional Market Sentiment for BBVA only reserved

SENTIMENT METRICS	September 7, 2023
ANALYST OPINION
ANALYST OPINION	37
OPINIONS CHANGE
OPINIONS CHANGE	n/a
PRO HOLDINGS
PRO HOLDINGS	59
MARKET PULSE
MARKET PULSE	24
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	35

ANALYSIS: With an Obermatt Sentiment Rank of 35 (better than 35% compared with alternatives), overall professional sentiment and engagement for the stock BBVA is below industry average.

RECOMMENDATION: With a consolidated Sentiment Rank of 35 (less encouraging than 65% compared with investment alternatives), BBVA has a reputation among professional investors that is below that of its competitors.

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Value Strategy: BBVA Stock Price Value below-average critical

VALUE METRICS	September 7, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	84
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	32
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	34
DIVIDEND YIELD
DIVIDEND YIELD	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	31

ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), BBVA shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for BBVA. Price-to-Sales (P/S) is 84, which means that the stock price compared with what market professionals expect for future sales is lower than 84% of comparable companies, indicating a good value concerning to BBVA's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 66% of alternatives (only 34% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 68% of comparable companies, 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 31, is a hold recommendation based on BBVA's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in BBVA could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, BBVA looks like an expensive investment today. ...read more

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Growth Strategy: BBVA Growth Momentum low

GROWTH METRICS	September 7, 2023
REVENUE GROWTH
REVENUE GROWTH	27
PROFIT GROWTH
PROFIT GROWTH	30
CAPITAL GROWTH
CAPITAL GROWTH	1
STOCK RETURNS
STOCK RETURNS	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	33

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), BBVA 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 BBVA. Sales Growth has a below market rank of 27, which means that, currently, professionals expect the company to grow less than 73% of its competitors. The same is valid for Capital Growth, with a rank of 1, and Profit Growth, with a rank of 30. Currently, professionals expect the company to grow its profits less than 70% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 100, which means that the stock returns have recently been above 100% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for BBVA, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. ...read more

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Safety Strategy: BBVA Debt Financing Safety below-average

SAFETY METRICS	September 7, 2023
LEVERAGE
LEVERAGE	90
REFINANCING
REFINANCING	49
LIQUIDITY
LIQUIDITY	4
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	46

ANALYSIS: With an Obermatt Safety Rank of 46 (better than 46% compared with alternatives), the company BBVA has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of BBVA is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for BBVA and the other two below average. Leverage is at a rank of 90 meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors.Refinancing is at a rank of 49, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. Liquidity is at a rank of 4, meaning that the company generates less profit to service its debt than 96% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 46 (worse than 54% compared with alternatives), BBVA has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of BBVA are on the safer side. ...read more

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Combined financial peformance: BBVA Lowest Financial Performance

COMBINED PERFORMANCE	September 7, 2023
VALUE
VALUE	31
GROWTH
GROWTH	33
SAFETY
SAFETY	4
COMBINED
COMBINED	14

ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), BBVA (Diversified Banks, Argentina) shares have lower financial characteristics compared with similar stocks. Shares of BBVA are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives), show below-average growth (Growth Rank of 33), and are riskily financed (Safety Rank of 46), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on BBVA's financial characteristics. As the company BBVA's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 31), low growth (Obermatt Growth Rank of 33), and risky financing practices (Obermatt Safety Rank of 46), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. ...read more

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