May 18, 2023
Top 10 Stock BW Offshore Hold Recommendation
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Snapshot: BW Offshore – Top 10 Stock in OBX Index
BW Offshore is listed as a top 10 stock on May 18, 2023 in the market index OBX Index because of its high performance in at least one of the Obermatt investment strategies. As three out of four consolidated Obermatt Ranks exhibit excellent performance, it is a solid investment where the risk of paying too much for the shares is low. Based on the Obermatt 360° View of 48 (48% performer), Obermatt assesses an overall hold recommendation for BW Offshore on May 18, 2023.
Snapshot: Obermatt Ranks
| Country | Bermuda |
| Industry | Oil & Gas Equipment |
| Index | Human Rights, OBX Index |
| Size class | Medium |
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
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° Assessment BW Offshore Hold
| 360 METRICS | May 18, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 50 |
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| GROWTH | ||||||||
| GROWTH | 85 |
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| SAFETY | ||||||||
| SAFETY | 12 |
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| SENTIMENT | ||||||||
| SENTIMENT | 61 |
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| 360° VIEW | ||||||||
| 360° VIEW | 48 |
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ANALYSIS: With an Obermatt 360° View of 48 (better than 48% compared with alternatives), overall professional sentiment and engagement for the stock BW Offshore are below the industry average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for BW Offshore. The consolidated Value Rank has an attractive rank of 50, which means that the share price of BW Offshore 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 50% of alternative stocks in the same industry. 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. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 61. But the company’s financing is risky with a Safety rank of 12. This means 88% of comparable companies have a safer financing structure than BW Offshore. ...read more
RECOMMENDATION: With a 360° View of 48, BW Offshore 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 good value (Value Rank of 50), above-average growth (Growth Rank of 85), and positive market sentiment in the professional investor community (Sentiment Rank of 61), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 12), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of BW Offshore is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more
Sentiment Strategy: Professional Market Sentiment for BW Offshore positive
ANALYSIS: With an Obermatt Sentiment Rank of 61 (better than 61% compared with alternatives), overall professional sentiment and engagement for the stock BW Offshore is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for BW Offshore. Analyst Opinions are at a rank of 77 (better than 77% 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 50, which means that stock research experts are changing their opinions for the better in recommending investing in the company. In other words, they are getting even more optimistic about investments in BW Offshore. Finally, the Professional Investors rank is 99, which means that currently, professional investors hold more stock in this company than in 99% of alternative investment opportunities. ...read more
RECOMMENDATION: With an Obermatt Sentiment Rank of 61 (more positive than 61% compared with investment alternatives), BW Offshore has a reputation among professional investors that is above-average compared with that of its competitors. Pros tend to favor investing in this company. But there is also a signal for caution. Market Pulse has a rank of 8, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 92% of competitors). This could mean future risks and should make investors careful. Attention to negative news for BW Offshore is worthwhile because they may be early warning signals. Without those, all other professional signals are encouraging, especially since analysts are getting more optimistic. ...read more
Value Strategy: BW Offshore Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 50 (better than 50% compared with alternatives), BW Offshore shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for BW Offshore. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 68 which means that the stock price compared with what market professionals expect for future profits is lower than 68% of comparable companies, indicating a good value concerning BW Offshore's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 85, and it's also true for Dividend Yield with an Dividend Yield Rank of 61. But, compared with other companies in the same industry, the stock price is higher than average if compared with expected revenues; only 67% of all competitors have an even higher stock price compared with sales revenues (a Price-to-Sales Rank of 33). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 50, is a BUY recommendation based on BW Offshore's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that BW Offshore has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing BW Offshore shares. ...read more
Growth Strategy: BW Offshore Growth Momentum high
ANALYSIS: With an Obermatt Growth Rank of 85 (better than 85% compared with alternatives) for 2023, BW Offshore 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 BW Offshore. Profit Growth has a rank of 79 which means that currently professionals expect the company to grow its profits more than 79% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 93, and Stock Returns has a rank of 53 which means that the stock returns have recently been above 53% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 26 (74% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 85, is a BUY recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. ...read more
Safety Strategy: BW Offshore Debt Financing Safety risky
| SAFETY METRICS | May 18, 2023 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 32 |
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| REFINANCING | ||||||||
| REFINANCING | 9 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 24 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 12 |
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ANALYSIS: With an Obermatt Safety Rank of 12 (better than 12% compared with alternatives), the company BW Offshore has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of BW Offshore 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 all three metrics below average for BW Offshore. Liquidity is at 24, meaning that the company generates less profit to service its debt than 76% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Finally, Refinancing is at a rank of 9 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 91% of its competitors. ...read more
RECOMMENDATION: With an Obermatt Safety Rank of 12 (worse than 88% compared with alternatives), BW Offshore has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. ...read more
Combined financial peformance: BW Offshore Below-Average Financial Performance
| COMBINED PERFORMANCE | May 18, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 50 |
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| GROWTH | ||||||||
| GROWTH | 85 |
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| SAFETY | ||||||||
| SAFETY | 24 |
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| COMBINED | ||||||||
| COMBINED | 43 |
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ANALYSIS: With an Obermatt Combined Rank of 43 (worse than 57% compared with investment alternatives), BW Offshore (Oil & Gas Equipment, Bermuda) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of BW Offshore are a good value (attractively priced) with a consolidated Obermatt Value Rank of 50 (better than 50% of alternatives), show above-average growth (Growth Rank of 85) but are riskily financed (Safety Rank of 12), which means above-average debt burdens. ...read more
RECOMMENDATION: An Obermatt Combined Rank of 43, is a hold recommendation based on BW Offshore's financial characteristics. As the company BW Offshore's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 50) and above-average growth (Obermatt Growth Rank of 85), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 12) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more
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