September 21, 2023
Top 10 Stock Beazley 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 Beazley Buy

360 METRICS	September 21, 2023
VALUE
VALUE	35
GROWTH
GROWTH	95
SAFETY
SAFETY	55
SENTIMENT
SENTIMENT	78
360° VIEW
360° VIEW	61

ANALYSIS: With an Obermatt 360° View of 61 (better than 61% compared with alternatives), overall professional sentiment and financial characteristics for the stock Beazley are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Beazley. The consolidated Growth Rank has a good rank of 95, 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 95% of competitors in the same industry. The consolidated Safety Rank at 55 means that the company has a financing structure that is safer than 55% 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 78, which means that professional investors are more optimistic about the stock than for 78% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 35, meaning that the share price of Beazley is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 65% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 61, Beazley is better positioned than 61% 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 95), a safe financing structure (Safety Rank of 55), and positive professional market sentiment (Sentiment Rank of 78), 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 Beazley compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (95% better than peers). The value rank could be the reverse reflection of that (5%). 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 Beazley very positive

SENTIMENT METRICS	September 21, 2023
ANALYST OPINION
ANALYST OPINION	79
OPINIONS CHANGE
OPINIONS CHANGE	75
PRO HOLDINGS
PRO HOLDINGS	35
MARKET PULSE
MARKET PULSE	73
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	78

ANALYSIS: With an Obermatt Sentiment Rank of 78 (better than 78% compared with alternatives) for 2022, overall professional sentiment and engagement for the stock Beazley is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Beazley. Analyst Opinions are at a rank of 79 (better than 79% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. In addition, Analyst Opinions Change has a rank of 75, which means that currently, stock research experts are getting even more optimistic. Obermatt Market Pulse further supports this with a rank of 73, which means that the current professional news and professional social networks are generally positive when discussing this company (more positive news than for 73% of competitors). But there are few stock holdings by institutional investors. The Professional Investors rank is low at 35, which means that currently, professional investors hold less stock in this company than in 65% of alternative investment opportunities. Pros tend to invest in other companies. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 78 (more positive than 78% compared with investment alternatives), Beazley has a reputation among professional investors that is significantly higher than that of its competitors. Not having too many professionals invested in Beazley may be less of an issue, especially if the stock is from a smaller company where professionals typically invest less. It is natural for professional investors to focus on large and extra-large companies, as they provide more safety. Smaller companies attract fewer professionals in the shareholder community. Overall, the signals from the professionals are still quite favorable for investments in Beazley. ...read more

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Value Strategy: Beazley Stock Price Value below-average critical

VALUE METRICS	September 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	34
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	68
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	23
DIVIDEND YIELD
DIVIDEND YIELD	22
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	35

ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), Beazley shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Beazley. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 68, which means that the stock price compared with what market professionals expect for future profits is lower than for 68% of comparable companies, indicating a good value concerning Beazley's profit levels. But Price-to-Sales is 34 which means that the stock price compared with what market professionals expect for future profits is higher than for 66% of comparable companies, indicating a low value concerning Beazley's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 23 and for dividend yield, which is lower than for 78% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on Beazley's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Beazley is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. ...read more

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Growth Strategy: Beazley Growth Momentum high

GROWTH METRICS	September 21, 2023
REVENUE GROWTH
REVENUE GROWTH	91
PROFIT GROWTH
PROFIT GROWTH	92
CAPITAL GROWTH
CAPITAL GROWTH	99
STOCK RETURNS
STOCK RETURNS	21
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	95

ANALYSIS: With an Obermatt Growth Rank of 95 (better than 95% compared with alternatives) for 2022, Beazley shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Beazley. Sales Growth has a value of 91 which means that currently professionals expect the company to grow more than 91% of its competitors. Profit Growth with a value of 92 and Capital Growth with a rank of 99 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 21, which means that stock returns have recently been below 79% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 95, is a buy recommendation for growth and momentum investors. Beazley has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Beazley, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. ...read more

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Safety Strategy: Beazley Debt Financing Safety above-average

SAFETY METRICS	September 21, 2023
LEVERAGE
LEVERAGE	78
REFINANCING
REFINANCING	66
LIQUIDITY
LIQUIDITY	68
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	55

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company Beazley 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 Beazley 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 Beazley. Leverage is at 78, meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors. Refinancing is at a rank of 66, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 66% of its competitors. Finally, Liquidity is also good at a rank of 68, which means that the company generates more profit to service its debt than 68% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), Beazley 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: Beazley Lowest Financial Performance

COMBINED PERFORMANCE	September 21, 2023
VALUE
VALUE	35
GROWTH
GROWTH	95
SAFETY
SAFETY	68
COMBINED
COMBINED	8

ANALYSIS: With an Obermatt Combined Rank of 8 (worse than 92% compared with investment alternatives), Beazley (Property & Casualty Insurance, Ireland) shares have lower financial characteristics compared with similar stocks. Shares of Beazley are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives). But they show above-average growth (Growth Rank of 95) and are safely financed (Safety Rank of 55, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 8, is a sell recommendation based on Beazley's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Beazley exhibits low value (Obermatt Value Rank of 35), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 95). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 55) 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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