September 7, 2023
Top 10 Stock Catena 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 Catena Strong Buy

360 METRICS	September 7, 2023
VALUE
VALUE	22
GROWTH
GROWTH	90
SAFETY
SAFETY	81
SENTIMENT
SENTIMENT	92
360° VIEW
360° VIEW	98

ANALYSIS: With an Obermatt 360° View of 98 (better than 98% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Catena are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Catena. The consolidated Growth Rank has a good rank of 90, 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 90% of competitors in the same industry. The consolidated Safety Rank at 81 means that the company has a financing structure that is safer than 81% 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 92, which means that professional investors are more optimistic about the stock than for 92% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 22, meaning that the share price of Catena is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 78% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 98, Catena is better positioned than 98% 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 90), a safe financing structure (Safety Rank of 81), and positive professional market sentiment (Sentiment Rank of 92), 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 Catena compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (90% better than peers). The value rank could be the reverse reflection of that (10%). 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 Catena very positive

SENTIMENT METRICS	September 7, 2023
ANALYST OPINION
ANALYST OPINION	91
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	79
MARKET PULSE
MARKET PULSE	69
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	92

ANALYSIS: With an Obermatt Sentiment Rank of 92 (better than 92% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Catena is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for Catena. Analyst Opinions are at a rank of 91 (better than 91% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive with a rank of 50, which means that stock research experts are changing their opinions for the better and recommending investing in the company. They are getting more optimistic about stock investments in Catena. The Professional Investors rank is 79, which means that currently, professional investors hold more stock in this company than in 79% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 69 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 69% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 92 (more positive than 92% compared with investment alternatives), Catena has a reputation among professional investors that is significantly higher than that of its competitors. Since all market sentiment indicators are positive, the professional community highly recommends investment in the company. Does this mean Catena stocks are a safe investment? Far from it. Even professionals make mistakes. Especially in stock investing, there is a tendency to follow the leaders. Since trees don't grow to the heavens, such positive sentiment may also be interpreted as a danger sign. A lot of optimism can often be a sign of troubles to come, albeit unforeseen by most. ...read more

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Value Strategy: Catena Stock Price Value low

VALUE METRICS	September 7, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	28
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	56
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	18
DIVIDEND YIELD
DIVIDEND YIELD	26
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	22

ANALYSIS: With an Obermatt Value Rank of 22 (worse than 78% compared with alternatives), Catena shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Catena. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 56, which means that the stock price compared with what market professionals expect for future profits is lower than for 56% of comparable companies, indicating a good value concerning Catena's profit levels. But Price-to-Sales is 28 which means that the stock price compared with what market professionals expect for future profits is higher than for 72% of comparable companies, indicating a low value concerning Catena'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 18 and for dividend yield, which is lower than for 74% 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 22, is a sell recommendation based on Catena'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 Catena 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: Catena Growth Momentum high

GROWTH METRICS	September 7, 2023
REVENUE GROWTH
REVENUE GROWTH	84
PROFIT GROWTH
PROFIT GROWTH	84
CAPITAL GROWTH
CAPITAL GROWTH	55
STOCK RETURNS
STOCK RETURNS	58
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	90

ANALYSIS: With an Obermatt Growth Rank of 90 (better than 90% compared with alternatives) for 2023, Catena 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 four indicators above average for Catena. Sales Growth has a value of 84, which means that, currently, professionals expect the company to grow more than 84% of its competitors. The same is valid for Profit Growth with a value of 84 and for Capital Growth with 55. In addition, Stock Returns had an above-average rank value of 58, which means they have been higher than 58% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 90, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Catena exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. ...read more

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Safety Strategy: Catena Debt Financing Safety very solid

SAFETY METRICS	September 7, 2023
LEVERAGE
LEVERAGE	83
REFINANCING
REFINANCING	52
LIQUIDITY
LIQUIDITY	72
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	81

ANALYSIS: With an Obermatt Safety Rank of 81 (better than 81% compared with alternatives) for 2023, the company Catena has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Catena 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 Catena. Leverage is at 83, meaning the company has a below-average debt-to-equity ratio. It has less debt than 83% of its competitors. Refinancing is at a rank of 52, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 52% of its competitors. Finally, Liquidity is also good at a rank of 72, which means that the company generates more profit to service its debt than 72% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 81 (better than 81% compared with alternatives), Catena 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: Catena Top Financial Performance

COMBINED PERFORMANCE	September 7, 2023
VALUE
VALUE	22
GROWTH
GROWTH	90
SAFETY
SAFETY	72
COMBINED
COMBINED	89

ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Catena (Real Estate: Operating Services, Sweden) shares have much better financial characteristics than comparable stocks. Shares of Catena are low in value (priced high) with a consolidated Value Rank of 22 (worse than 78% of alternatives). But they show above-average growth (Growth Rank of 90) and are safely financed (Safety Rank of 81, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Catena's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Catena exhibits low value (Obermatt Value Rank of 22), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 90). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 81) 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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