Fact based stock research
Cargotec (HLSE:CGCBV)

FI0009013429

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Now you can read our analysis of the dynamics behind our ranks. What does it mean if the Value Rank is low but Growth is high? What if only one of the Sentiment metrics is pulling the rank in a certain direction? While ChatGPT may be all the rage, we developed this analysis without using any artificial intelligence, just our own experience built up over the 20+ years we’ve been measuring corporate performance.

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.

Cargotec stock research in summary

cargotec.com

ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), Cargotec (Industrial Machinery, Finland) shares have above-average financial characteristics compared with similar stocks. Shares of Cargotec are a good value (attractively priced) with a consolidated Value Rank of 86 (better than 86% of alternatives), are safely financed (Safety Rank of 60, which means low debt burdens), but show below-average growth (Growth Rank of 37). ...read more

RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on Cargotec's financial characteristics. As the company Cargotec's key financial metrics exhibit good value (Obermatt Value Rank of 86) but low growth (Obermatt Growth Rank of 37) while being safely financed (Obermatt Safety Rank of 60), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 86% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	86
Growth Rank	37
Safety Rank	60
Combined Rank	72

Country	Finland
Industry	Industrial Machinery
Index	OMX 25
Size class	X-Large

This stock has achievements: Insight 2017-11-10, Top 10 Stock, Top 10 Focus Stock, Dividends Europe, Employee Focus EU.

28-Sep-2023. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Cargotec

RESEARCH HISTORY	2020	2021	2022	2023
VALUE
VALUE	79	90	91	86
GROWTH
GROWTH	19	68	89	37
SAFETY
SAFETY	25	22	49	60
SENTIMENT
SENTIMENT	n/a	n/a	51	^new
360° VIEW
360° VIEW	n/a	n/a	95	^new

Most recent update of the stock research: 28-Sep-2023. Financial reporting date used for calculating ranks: 30-Jun-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Cargotec is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2020	2021	2022	2023
VALUE
VALUE	79	90	91	86
GROWTH
GROWTH	19	68	89	37
SAFETY
SAFETY	25	22	49	60
COMBINED
COMBINED	21	72	95	72

Last update of combined financial performance: 28-Sep-2023. Stock analysis on combined financial performance: The higher the rank of Cargotec the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 86 (better than 86% compared with alternatives) for 2023, Cargotec shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Cargotec. Price-to-Sales is 69 which means that the stock price compared with what market professionals expect for future sales is lower than for 69% of comparable companies, indicating a good value for Cargotec's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 87% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 61. Compared with other companies in the same industry, dividend yields of Cargotec are expected to be higher than for 86% of all competitors (a Dividend Yield rank of 86). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 86, is a buy recommendation based on Cargotec's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Cargotec based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2020	2021	2022	2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	90	74	78	69
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	10	95	75	87
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	66	79	61
DIVIDEND YIELD
DIVIDEND YIELD	96	90	79	86
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	79	90	91	86

Last update of Value Rank: 28-Sep-2023. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Cargotec; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), Cargotec 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 half of the indicators below and half above average for Cargotec. Profit Growth has a rank of 83, which means that currently professionals expect the company to grow its profits more than 83% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 65 (above 65% of alternative investments). But Sales Growth has a below the median rank of 1, which means that, currently, professionals expect the company to grow less than 99% of its competitors, and Capital Growth also has a lower rank of 34. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Cargotec. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2020	2021	2022	2023
REVENUE GROWTH
REVENUE GROWTH	4	10	88	1
PROFIT GROWTH
PROFIT GROWTH	47	47	28	83
CAPITAL GROWTH
CAPITAL GROWTH	n/a	n/a	75	34
STOCK RETURNS
STOCK RETURNS	66	80	71	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	68	89	37

Last update of Growth Rank: 28-Sep-2023. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Cargotec.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company Cargotec 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 Cargotec 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 Cargotec. Refinancing is at 64, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 64% of its competitors. Liquidity is also good at 59, meaning the company generates more profit to service its debt than 59% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 45, which means the company has an above-average debt-to-equity ratio. It has more debt than 55% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), Cargotec has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Cargotec could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Cargotec and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2020	2021	2022	2023
LEVERAGE
LEVERAGE	10	16	20	45
REFINANCING
REFINANCING	69	58	79	64
LIQUIDITY
LIQUIDITY	25	39	44	59
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	25	22	49	60

Last update of Safety Rank: 28-Sep-2023. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Cargotec and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2020	2021	2022	2023
ANALYST OPINIONS
ANALYST OPINIONS	n/a	n/a	70	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	n/a	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	n/a	19	^new
MARKET PULSE
MARKET PULSE	n/a	n/a	55	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	n/a	51	^new

Last update of Sentiment Rank: 28-Sep-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Cargotec.
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