August 24, 2023
Top 10 Stock CyberAgent Sell 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: CyberAgent – Top 10 Stock in Artificial Intelligence & Big Data
CyberAgent is listed as a top 10 stock on August 24, 2023 in the market index Artificial Intelligence because of its high performance in at least one of the Obermatt investment strategies. While half the consolidated Obermatt Ranks are above-average, investor sentiment is negative and growth performance is below market average, both a sign for caution. Based on the Obermatt 360° View of 22 (22% performer), Obermatt issues an overall sell recommendation for CyberAgent on August 24, 2023.
Snapshot: Obermatt Ranks
| Country | Japan |
| Industry | Advertising |
| Index | Artificial Intelligence, Nikkei 225 |
| Size class | X-Large |
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° View CyberAgent Sell
| 360 METRICS | August 24, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 74 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 3 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 92 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 1 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 22 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 22 (better than 22% compared with alternatives), overall professional sentiment and financial characteristics for the stock CyberAgent are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with half the metrics below and half above average for CyberAgent. The consolidated Value Rank has an attractive rank of 74, which means that the share price of CyberAgent is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 74% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 92. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of 1. Professional investors are more confident in 99% other stocks. The consolidated Growth Rank also has a low rank of 3, which means that the company is below average in terms of growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. 97 of its competitors have better growth. ...read more
RECOMMENDATION: With a consolidated 360° View of 22, CyberAgent is worse than 78% of all alternative stock investment opportunities based on the Obermatt Method. This means that CyberAgent shares are on the riskier side for investors. The picture is mixed here. The stock seems to be a good value (Value Rank of 74), and the financing structure is on the safer side (Safety Rank of 92). However, sentiment in the professional investor community is below-average (Sentiment Rank of 1), as is the growth momentum for the company (Growth Rank of 3). Since the company is good value and the share price low, it should attract investors, yet professionals are skeptical. Even though the financing structure is not as important as Value, Growth, and Sentiment, investors should still be careful with this decision and conduct further research if they are serious about investing in this company. ...read more
Sentiment Strategy: Professional Market Sentiment for CyberAgent negative
ANALYSIS: With an Obermatt Sentiment Rank of 1 (better than 1% compared with alternatives), overall professional sentiment and engagement for the stock CyberAgent is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for CyberAgent. Analyst Opinions are at a rank of 7 (worse than 93% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. Worse, Analyst Opinions Change has a rank of 19 which means that stock research experts are getting even more pessimistic. It doesn't end with the analysts. Market Pulse is also low with a rank of 13, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 87% of competitors). No wonder, the Professional Investors rank is only 1, which means that professional investors hold less stock in this company than in 99% of alternative investment opportunities. Pros tend to stay away from CyberAgent, which may be due to a small company size but just as likely because of its relatively low Sentiment Rank. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 1 (less encouraging than 99% compared with investment alternatives), CyberAgent has a reputation among professional investors that is far below that of its competitors. Investors should be careful with this stock right now. Further research is required if an investment is desired, because the facts found in the professional community are all negative. ...read more
Value Strategy: CyberAgent Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 74 (better than 74% compared with alternatives), CyberAgent shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for CyberAgent. Price-to-Sales is 91 which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value for CyberAgent's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 52% 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 50. Compared with other companies in the same industry, dividend yields of CyberAgent are expected to be higher than for 67% of all competitors (a Dividend Yield rank of 67). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 74, is a buy recommendation based on CyberAgent'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 CyberAgent based on its detailed value metrics.
Growth Strategy: CyberAgent Growth Momentum negative
ANALYSIS: With an Obermatt Growth Rank of 3 (better than 3% compared with alternatives), CyberAgent shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for CyberAgent. Sales Growth has a rank of 28, which means that currently professionals expect the company to grow less than 72% of its competitors. The same is valid for Profit Growth, with a rank of 4, and Capital Growth with 1. In addition, Stock Returns have a below market rank of 19, which means that the stock returns have recently been below 81% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 3, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. ...read more
Safety Strategy: CyberAgent Debt Financing Safety very solid
| SAFETY METRICS | August 24, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 44 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 91 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 94 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 92 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 92 (better than 92% compared with alternatives) for 2023, the company CyberAgent has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of CyberAgent 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 CyberAgent. Refinancing is at 91, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 91% of its competitors. Liquidity is also good at 94, meaning the company generates more profit to service its debt than 94% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 44, which means the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 92 (better than 92% compared with alternatives), CyberAgent has a financing structure that is significantly 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 CyberAgent 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. ...read more
Combined financial peformance: CyberAgent Above-Average Financial Performance
| COMBINED PERFORMANCE | August 24, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 74 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 3 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 94 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 67 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), CyberAgent (Advertising, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of CyberAgent are a good value (attractively priced) with a consolidated Value Rank of 74 (better than 74% of alternatives), are safely financed (Safety Rank of 92, which means low debt burdens), but show below-average growth (Growth Rank of 3). ...read more
RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on CyberAgent's financial characteristics. As the company CyberAgent's key financial metrics exhibit good value (Obermatt Value Rank of 74) but low growth (Obermatt Growth Rank of 3) while being safely financed (Obermatt Safety Rank of 92), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 74% 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. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.