September 7, 2023
Top 10 Stock DEFAMA Deutsche Fachmarkt Buy 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: DEFAMA Deutsche Fachmarkt – Top 10 Stock in Real Estate in Europe
DEFAMA Deutsche Fachmarkt is listed as a top 10 stock on September 07, 2023 in the market index R/E Europe because of its high performance in at least one of the Obermatt investment strategies. Two consolidated Obermatt Ranks are above-average. The company is growing above average and professional investor sentiment is positive. Both are encouraging signals for a stock purchase decision, albeit at an above-average share price. Based on the Obermatt 360° View of 61 (high 61% performer), Obermatt assesses an overall buy recommendation for DEFAMA Deutsche Fachmarkt on September 07, 2023.
Snapshot: Obermatt Ranks
| Country | Germany |
| Industry | Real Estate: Operating Services |
| Index | CDAX, R/E Europe |
| Size class | X-Small |
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 DEFAMA Deutsche Fachmarkt Buy
| 360 METRICS | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 30 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 94 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 8 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 80 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 61 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 61 (better than 61% compared with alternatives), overall professional sentiment and financial characteristics for the stock DEFAMA Deutsche Fachmarkt are above average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for DEFAMA Deutsche Fachmarkt. The consolidated Growth Rank has a good rank of 94, 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 94% of competitors in the same industry. The consolidated Sentiment Rank also has a good rank of 80, which means that professional investors are more optimistic about the stock than for 80% of alternative investment opportunities. But the consolidated Value Rank has a less desirable rank of 30, which means that the share price of DEFAMA Deutsche Fachmarkt is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 70% of alternative stocks in the same industry. Finally, the consolidated Safety Rank has a riskier rank of 8, which means that the company has a financing structure that is riskier than those of 92% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more
RECOMMENDATION: With a consolidated 360° View of 61, DEFAMA Deutsche Fachmarkt is better positioned than 61% of all alternative stock investment opportunities based on the Obermatt Method. Only half of the consolidated Obermatt Ranks exhibit excellent performance, so one needs to take a close look. Growth is above-average (Growth Rank of 94), and professional market sentiment is positive (Sentiment Rank of 80), but value and safety are below average. The Safety Rank is the least significant of the four consolidated ranks, because it only reflects financing practices. In the case of high growth, aggressive financing is a good thing. So the question is: How to assess below-average value against above-average growth and sentiment? Growth may be the strongest driver of the investment rationale in this case, which is reflected in institutional investors' opinions. 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 do you sacrifice value for growth? You can use the following rule of thumb: If you take 100 minus the growth rank, you arrive at a possibly minimum level for the value rank. For example, if the growth rank is at 75, and the value rank is at 5, you should tread carefully. If the value rank is at 40, it still might be a good value if the growth rank is above 60. Sometimes market sentiment just extrapolates the past, but sometimes it reflects reality. You pay more than the market average for this stock, but it may be worth it. ...read more
Sentiment Strategy: Professional Market Sentiment for DEFAMA Deutsche Fachmarkt very positive
ANALYSIS: With an Obermatt Sentiment Rank of 80 (better than 80% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock DEFAMA Deutsche Fachmarkt is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for DEFAMA Deutsche Fachmarkt. Analyst Opinions are at a rank of 100 (better than 100% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. In addition, Analyst Opinions Change has a rank of 50, which means that stock research experts are changing their opinions for the better in recommending investing in the company. In other words, they are getting even more optimistic about investments in DEFAMA Deutsche Fachmarkt. Finally, the Professional Investors rank is 88, which means that currently, professional investors hold more stock in this company than in 88% of alternative investment opportunities. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 80 (more positive than 80% compared with investment alternatives), DEFAMA Deutsche Fachmarkt has a reputation among professional investors that is significantly higher than that of its competitors. Pros tend to favor investing in this company. But there is also a signal for caution. Market Pulse has a rank of 27, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 73% of competitors). This could mean future risks and should make investors careful. Attention to negative news for DEFAMA Deutsche Fachmarkt is worthwhile because they may be early warning signals. Without those, all other professional signals are encouraging, especially since analysts are getting more optimistic. ...read more
Value Strategy: DEFAMA Deutsche Fachmarkt Stock Price Value below-average critical
ANALYSIS: With an Obermatt Value Rank of 30 (worse than 70% compared with alternatives), DEFAMA Deutsche Fachmarkt 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 DEFAMA Deutsche Fachmarkt. Price-to-Sales (P/S) is 74, which means that the stock price compared with what market professionals expect for future sales is lower than 74% of comparable companies, indicating a good value concerning to DEFAMA Deutsche Fachmarkt's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 37, meaning that dividends are expected to be lower than for 63% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 97% of alternatives (only 3% 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 70% 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 30, is a hold recommendation based on DEFAMA Deutsche Fachmarkt'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 DEFAMA Deutsche Fachmarkt 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, DEFAMA Deutsche Fachmarkt looks like an expensive investment today. ...read more
Growth Strategy: DEFAMA Deutsche Fachmarkt Growth Momentum high
| GROWTH METRICS | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 89 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 44 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 96 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 56 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 94 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 94 (better than 94% compared with alternatives) for 2023, DEFAMA Deutsche Fachmarkt 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 but one indicator above average for DEFAMA Deutsche Fachmarkt. Sales Growth has a rank of 89 which means that currently, professionals expect the company to grow more than 89% of its competitors. Capital Growth is also above 44% of competitors with a rank of 96, and Stock Returns with the rank of 56 is also an outperformance. Only Profit Growth is low with a rank of 44 which means that currently, professionals expect the company to grow its profits less than 56% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 94, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, DEFAMA Deutsche Fachmarkt is a good growth stock. ...read more
Safety Strategy: DEFAMA Deutsche Fachmarkt Debt Financing Safety risky
| SAFETY METRICS | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 3 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 6 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 67 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 8 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 8 (better than 8% compared with alternatives), the company DEFAMA Deutsche Fachmarkt has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of DEFAMA Deutsche Fachmarkt 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 DEFAMA Deutsche Fachmarkt. Liquidity is at 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 6, 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 94% of its competitors. Leverage is also high at a rank of 3, which means that the company has an above-average debt-to-equity ratio. It has more debt than 97% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 8 (worse than 92% compared with alternatives), DEFAMA Deutsche Fachmarkt has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more
Combined financial peformance: DEFAMA Deutsche Fachmarkt Below-Average Financial Performance
| COMBINED PERFORMANCE | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 30 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 94 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 67 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 32 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), DEFAMA Deutsche Fachmarkt (Real Estate: Operating Services, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of DEFAMA Deutsche Fachmarkt are low in value (priced high) with a consolidated Value Rank of 30 (worse than 70% of alternatives), and are riskily financed (Safety Rank of 8, which means above-average debt burdens) but show above-average growth (Growth Rank of 94). ...read more
RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on DEFAMA Deutsche Fachmarkt's financial characteristics. As the company DEFAMA Deutsche Fachmarkt shows low value with an Obermatt Value Rank of 30 (70% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 94% of comparable companies (Obermatt Growth Rank is 94). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 8 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for DEFAMA Deutsche Fachmarkt, even a low-value company (in terms of its key financial indicators) can be a good investment. ...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.