September 7, 2023
Top 10 Stock CLS Hold 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 CLS Hold

360 METRICS	September 7, 2023
VALUE
VALUE	82
GROWTH
GROWTH	27
SAFETY
SAFETY	33
SENTIMENT
SENTIMENT	49
360° VIEW
360° VIEW	37

ANALYSIS: With an Obermatt 360° View of 37 (better than 37% compared with alternatives), overall professional sentiment and financial characteristics for the stock CLS are below the industry average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for CLS. Only the consolidated Value Rank has an attractive rank of 82, which means that the share price of CLS is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 82% of alternative stocks in the same industry. All other consolidated ranks are below average. The consolidated Growth Rank has a low rank of 27, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The consolidated Safety Rank has a riskier rank of 33, meaning the company has a riskier financing structure than 67% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, professionals are more pessimistic about the stock than for 51% of alternative investment opportunities, reflected in the consolidated Sentiment Rank of 49. ...read more

RECOMMENDATION: With a consolidated 360° View of 37, CLS is worse than 63% of all alternative stock investment opportunities based on the Obermatt Method. Only one of the consolidated Obermatt Ranks exhibits above-average performance, namely the Value Rank at a level of 82. All other ranks are below average, so proceed with caution. The company has below-average growth expectations (Growth Rank of 27), a riskier financing structure than the competition (Safety Rank of 33), and the market sentiment in the professional investor community ranking at (Sentiment Rank of 49) is negative. This combination is sensitive to a crisis, because high debt levels (low safety) require growth to finance the debt burden. It’s no wonder that the investor community indicators are skeptical (low sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. We recommend evaluating whether the future of CLS is as challenging as the low price of the stock suggests. Since the professional community is pessimistic, you might need to worry about the future of CLS. Only invest if you have solid reasons to believe that the low growth is temporary and the current market sentiment is an overreaction, possibly due to reputational issues in the past. ...read more

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Sentiment Strategy: Professional Market Sentiment for CLS only reserved

SENTIMENT METRICS	September 7, 2023
ANALYST OPINION
ANALYST OPINION	76
OPINIONS CHANGE
OPINIONS CHANGE	2
PRO HOLDINGS
PRO HOLDINGS	28
MARKET PULSE
MARKET PULSE	91
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	49

ANALYSIS: With an Obermatt Sentiment Rank of 49 (better than 49% compared with alternatives), overall professional sentiment and engagement for the stock CLS is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and half above average for CLS. Analyst Opinions are at a rank of 76 (better than 76% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. Market Pulse is also positive with a rank of 91, which means that the current professional news and professional social networks are positive when discussing this company (more positive news than for 91% of competitors). But Analyst Opinions Change is negative with a below 50 rank of 2, which means that stock research experts are changing their opinions for the worse in recommending the company. In other words, they are getting more critical of investments in CLS. There are also only so many institutional investors holding company stock with a Professional Investors rank of 28, which means that, currently, professional investors hold less stock in this company than in 72% of alternative investment opportunities. Pros tend to invest in other companies. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 49 (less encouraging than 51% compared with investment alternatives), CLS has a reputation among professional investors that is below that of its competitors. The signals are ambivalent. The positive news in the market contradicts the negative change in analyst recommendations. Since the overall analyst recommendations are still above average, the stock may be safer for investing, especially if it is not an extra-large company where Pros tend to be less present. In such a case, the Pro Investor rank is not a problem. ...read more

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Value Strategy: CLS Stock Price Value at the top

VALUE METRICS	September 7, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	60
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	87
DIVIDEND YIELD
DIVIDEND YIELD	89
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	82

ANALYSIS: With an Obermatt Value Rank of 82 (better than 82% compared with alternatives) for 2023, CLS shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for CLS. Price-to-Sales is 50 which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value for CLS's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 60% 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 87. Compared with other companies in the same industry, dividend yields of CLS are expected to be higher than for 89% of all competitors (a Dividend Yield rank of 89). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 82, is a buy recommendation based on CLS'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 CLS based on its detailed value metrics.

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Growth Strategy: CLS Growth Momentum low

GROWTH METRICS	September 7, 2023
REVENUE GROWTH
REVENUE GROWTH	15
PROFIT GROWTH
PROFIT GROWTH	94
CAPITAL GROWTH
CAPITAL GROWTH	21
STOCK RETURNS
STOCK RETURNS	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	27

ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), CLS 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 three out of four metrics below average for CLS. While Profit Growth has a good rank of 94, as professionals currently expect the company to grow its profits more than 94% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 15, which means that currently professionals expect the company to grow less than 85% of its competitors, while Capital Growth has a rank of 21 and Stock Returns have been below market median, with a rank of 31 (69% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. ...read more

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Safety Strategy: CLS Debt Financing Safety below-average

SAFETY METRICS	September 7, 2023
LEVERAGE
LEVERAGE	37
REFINANCING
REFINANCING	60
LIQUIDITY
LIQUIDITY	30
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	33

ANALYSIS: With an Obermatt Safety Rank of 33 (better than 33% compared with alternatives), the company CLS has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of CLS 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 just one indicator above average for CLS and the other two below average. Refinancing is at 60, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 60% of its competitors. But Leverage is high with a rank of 37, meaning the company has an above-average debt-to-equity ratio. It has more debt than 63% of its competitors. Liquidity is also on the riskier side with a rank of 30, meaning the company generates less profit to service its debt than 70% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 33 (worse than 67% compared with alternatives), CLS has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for CLS are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. ...read more

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Combined financial peformance: CLS Below-Average Financial Performance

COMBINED PERFORMANCE	September 7, 2023
VALUE
VALUE	82
GROWTH
GROWTH	27
SAFETY
SAFETY	30
COMBINED
COMBINED	46

ANALYSIS: With an Obermatt Combined Rank of 46 (worse than 54% compared with investment alternatives), CLS (REITs: Offices, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of CLS are a good value (attractively priced) with a consolidated Value Rank of 82 (better than 82% of alternatives) but show below-average growth (Growth Rank of 27), and are riskily financed (Safety Rank of 33), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 46, is a hold recommendation based on CLS's financial characteristics. As the company CLS's key financial metrics exhibit good value (Obermatt Value Rank of 82) but low growth (Obermatt Growth Rank of 27) and risky financing practices (Obermatt Safety Rank of 33), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 82% of comparable companies, may indicate 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. ...read more

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