November 23, 2023
Top 10 Stock Cranswick 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 Cranswick Strong Buy

360 METRICS	November 23, 2023
VALUE
VALUE	25
GROWTH
GROWTH	40
SAFETY
SAFETY	90
SENTIMENT
SENTIMENT	94
360° VIEW
360° VIEW	81

ANALYSIS: With an Obermatt 360° View of 81 (better than 81% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Cranswick are very positive. The 360° View is based on consolidating four consolidated indicators, with half below and half above average for Cranswick. The consolidated Sentiment Rank has a good rank of 94, which means that professional investors are more optimistic about the stock than for 94% of alternative investment opportunities. It also rates well regarding its financing structure, with the consolidated Safety Rank at 90 or better than 90% of its peers when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the stock is expensive and expects low growth. The consolidated Value Rank is only 25, meaning that the share price of Cranswick is on the high side, compared with indicators such as revenues, profits, and invested capital. The company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth,and stock returns, with its Growth Rank at 40. ...read more

RECOMMENDATION: With a consolidated 360° View of 81, Cranswick is better positioned than 81% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, namely the positive professional market sentiment (Sentiment Rank of 94) and safe financing practices (Safety Rank of 90), the case for investing in this stock needs further thought. The Value and the Safety Ranks are below average. The Safety Rank is the least critical of the four consolidated ranks, because it only reflects financing practices. So the question is: How to assess below-average value against above-average sentiment? This may be a case where growth is in the future, not yet reflected in current performance. Companies that might fall into this category are those with intellectual property, such as technology and pharmaceutical companies. In early phases, they are expensive relative to their size and have a lot of capital on their books, as is the case here. Investors expect a better future and are willing to pay a higher price than is warranted by the current company size. These higher prices drive stock price value down in the short term. In this case, future growth may be the strongest driver of the investment case, reflected by institutional investors' opinions. With a weak Value Rank, the question is how much to sacrifice value at the cost of positive sentiment. Sometimes market sentiment is just hype, but sometimes it is right. You pay more than market-average for this stock, but it may be worth it, if the future of Cranswicḳ is bright. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for Cranswick very positive

SENTIMENT METRICS	November 23, 2023
ANALYST OPINION
ANALYST OPINION	82
OPINIONS CHANGE
OPINIONS CHANGE	55
PRO HOLDINGS
PRO HOLDINGS	94
MARKET PULSE
MARKET PULSE	82
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	94

ANALYSIS: With an Obermatt Sentiment Rank of 94 (better than 94% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Cranswick is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for Cranswick. Analyst Opinions are at a rank of 82 (better than 82% 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 55, 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 Cranswick. The Professional Investors rank is 94, which means that currently, professional investors hold more stock in this company than in 94% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 82 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 82% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 94 (more positive than 94% compared with investment alternatives), Cranswick 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 Cranswick 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: Cranswick Stock Price Value below-average critical

VALUE METRICS	November 23, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	26
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	30
DIVIDEND YIELD
DIVIDEND YIELD	33
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	25

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Cranswick shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Cranswick. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than 50% of comparable companies, indicating a good value concerning to Cranswick's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 33, meaning that dividends are expected to be lower than for 67% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 70% of alternatives (only 30% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 74% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Cranswick's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Cranswick could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Cranswick looks like an expensive investment today. ...read more

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Growth Strategy: Cranswick Growth Momentum low

GROWTH METRICS	November 23, 2023
REVENUE GROWTH
REVENUE GROWTH	50
PROFIT GROWTH
PROFIT GROWTH	53
CAPITAL GROWTH
CAPITAL GROWTH	21
STOCK RETURNS
STOCK RETURNS	68
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	40

ANALYSIS: With an Obermatt Growth Rank of 40 (better than 40% compared with alternatives), Cranswick 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 all but one indicator above average for Cranswick. Sales Growth has a rank of 50 which means that currently, professionals expect the company to grow more than 50% of its competitors. Both Profit Growth, with a rank of 53, and Stock Returns, with a rank of 68, are also above average. But Capital Growth only has a rank of 21, which means that, currently, professionals expect the company to grow its invested capital less than 79% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 40, is a hold recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. ...read more

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Safety Strategy: Cranswick Debt Financing Safety very solid

SAFETY METRICS	November 23, 2023
LEVERAGE
LEVERAGE	97
REFINANCING
REFINANCING	40
LIQUIDITY
LIQUIDITY	90
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90

ANALYSIS: With an Obermatt Safety Rank of 90 (better than 90% compared with alternatives) for 2023, the company Cranswick has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Cranswick 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 Cranswick. Leverage is at a rank of 97, meaning the company has a below-average debt-to-equity ratio. It has less debt than 97% of its competitors. Liquidity is also good at a rank of 90, meaning the company generates more profit to service its debt than 90% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 40, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 90 (better than 90% compared with alternatives), Cranswick has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Cranswick. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Cranswick Above-Average Financial Performance

COMBINED PERFORMANCE	November 23, 2023
VALUE
VALUE	25
GROWTH
GROWTH	40
SAFETY
SAFETY	90
COMBINED
COMBINED	55

ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Cranswick (Packaged Foods & Meats, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Cranswick are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives) and show below-average growth (Growth Rank of 40) but are safely financed (Safety Rank of 90), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Cranswick's financial characteristics. As the company Cranswick's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 25) and low growth (Obermatt Growth Rank of 40), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 90) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. ...read more

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