November 23, 2023
Top 10 Stock Bellway Strong 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 Bellway Strong Buy

360 METRICS	November 23, 2023
VALUE
VALUE	20
GROWTH
GROWTH	85
SAFETY
SAFETY	94
SENTIMENT
SENTIMENT	56
360° VIEW
360° VIEW	80

ANALYSIS: With an Obermatt 360° View of 80 (better than 80% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Bellway are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Bellway. The consolidated Growth Rank has a good rank of 85, 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 85% of competitors in the same industry. The consolidated Safety Rank at 94 means that the company has a financing structure that is safer than 94% 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 56, which means that professional investors are more optimistic about the stock than for 56% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 20, meaning that the share price of Bellway is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 80% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 80, Bellway is better positioned than 80% 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 85), a safe financing structure (Safety Rank of 94), and positive professional market sentiment (Sentiment Rank of 56), 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 Bellway compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (85% better than peers). The value rank could be the reverse reflection of that (15%). 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 Bellway positive

SENTIMENT METRICS	November 23, 2023
ANALYST OPINION
ANALYST OPINION	67
OPINIONS CHANGE
OPINIONS CHANGE	31
PRO HOLDINGS
PRO HOLDINGS	68
MARKET PULSE
MARKET PULSE	36
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	56

ANALYSIS: With an Obermatt Sentiment Rank of 56 (better than 56% compared with alternatives), overall professional sentiment and engagement for the stock Bellway is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and the other half above average for Bellway. Analyst Opinions are at a rank of 67 (better than 67% of alternative investments). Currently, stock research analysts tend to recommend a stock investment in the company. There are also many institutional investors invested in the stock, represented by a Professional Investors rank of 68 which means that currently, professional investors hold more stock in this company than in 68% of alternative investment opportunities. But Analyst Opinions Change has a rank of 31, which means that stock research experts are changing their opinions for the worse in recommending investing in the company. In other words, they are getting more critical of investments in Bellway. Furthermore, Market Pulse has a rank of 36, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 64% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 56 (more positive than 56% compared with investment alternatives), Bellway has a reputation among professional investors that is above-average compared with that of its competitors. Three below-market sentiment indicators are a sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it may be around the corner. ...read more

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Value Strategy: Bellway Stock Price Value low

VALUE METRICS	November 23, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	29
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	22
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	72
DIVIDEND YIELD
DIVIDEND YIELD	22
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	20

ANALYSIS: With an Obermatt Value Rank of 20 (worse than 80% compared with alternatives), Bellway shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators where three out of four are below average for Bellway. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 72, which means that the stock price is lower compared with invested capital than for 72% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 29 which means the stock price compared with what market professionals expect for future profits is higher than 71% of comparable companies, indicating a low value concerning Bellway's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 72 and for the dividend yields rank which is lower than for 78% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 20, is a sell recommendation based on Bellway's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Bellway, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. ...read more

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Growth Strategy: Bellway Growth Momentum high

GROWTH METRICS	November 23, 2023
REVENUE GROWTH
REVENUE GROWTH	96
PROFIT GROWTH
PROFIT GROWTH	10
CAPITAL GROWTH
CAPITAL GROWTH	88
STOCK RETURNS
STOCK RETURNS	79
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	85

ANALYSIS: With an Obermatt Growth Rank of 85 (better than 85% compared with alternatives) for 2023, Bellway 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 Bellway. Sales Growth has a rank of 96 which means that currently, professionals expect the company to grow more than 96% of its competitors. Capital Growth is also above 10% of competitors with a rank of 88, and Stock Returns with the rank of 79 is also an outperformance. Only Profit Growth is low with a rank of 10 which means that currently, professionals expect the company to grow its profits less than 90% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 85, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Bellway is a good growth stock. ...read more

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Safety Strategy: Bellway Debt Financing Safety very solid

SAFETY METRICS	November 23, 2023
LEVERAGE
LEVERAGE	87
REFINANCING
REFINANCING	94
LIQUIDITY
LIQUIDITY	86
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	94

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2023, the company Bellway has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Bellway 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 Bellway. Leverage is at 87, meaning the company has a below-average debt-to-equity ratio. It has less debt than 87% of its competitors. Refinancing is at a rank of 94, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 94% of its competitors. Finally, Liquidity is also good at a rank of 86, which means that the company generates more profit to service its debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Bellway has a financing structure that is significantly 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: Bellway Top Financial Performance

COMBINED PERFORMANCE	November 23, 2023
VALUE
VALUE	20
GROWTH
GROWTH	85
SAFETY
SAFETY	86
COMBINED
COMBINED	82

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Bellway (Homebuilding, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Bellway are low in value (priced high) with a consolidated Value Rank of 20 (worse than 80% of alternatives). But they show above-average growth (Growth Rank of 85) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Bellway's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Bellway exhibits low value (Obermatt Value Rank of 20), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 85). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) 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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