August 31, 2023
Top 10 Stock Deutsche Börse 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 Deutsche Börse Buy

360 METRICS	August 31, 2023
VALUE
VALUE	13
GROWTH
GROWTH	77
SAFETY
SAFETY	77
SENTIMENT
SENTIMENT	65
360° VIEW
360° VIEW	74

ANALYSIS: With an Obermatt 360° View of 74 (better than 74% compared with alternatives), overall professional sentiment and financial characteristics for the stock Deutsche Börse are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Deutsche Börse. The consolidated Growth Rank has a good rank of 77, 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 77% of competitors in the same industry. The consolidated Safety Rank at 77 means that the company has a financing structure that is safer than 77% 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 65, which means that professional investors are more optimistic about the stock than for 65% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 13, meaning that the share price of Deutsche Börse is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 87% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 74, Deutsche Börse is better positioned than 74% 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 77), a safe financing structure (Safety Rank of 77), and positive professional market sentiment (Sentiment Rank of 65), 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 Deutsche Börse compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (77% better than peers). The value rank could be the reverse reflection of that (23%). 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 Deutsche Börse positive

SENTIMENT METRICS	August 31, 2023
ANALYST OPINION
ANALYST OPINION	34
OPINIONS CHANGE
OPINIONS CHANGE	55
PRO HOLDINGS
PRO HOLDINGS	61
MARKET PULSE
MARKET PULSE	80
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	65

ANALYSIS: With an Obermatt Sentiment Rank of 65 (better than 65% compared with alternatives), overall professional sentiment and engagement for the stock Deutsche Börse is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Deutsche Börse. Analyst Opinions are at a rank of 34 (worse than 66% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 55, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Deutsche Börse. Even better, the Professional Investors rank is 61, meaning that professional investors hold more stock in this company than in 61% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 80, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 80% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 65 (more positive than 65% compared with investment alternatives), Deutsche Börse has a reputation among professional investors that is above-average compared with that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: Deutsche Börse Stock Price Value low

VALUE METRICS	August 31, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	22
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14
DIVIDEND YIELD
DIVIDEND YIELD	20
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	13

ANALYSIS: With an Obermatt Value Rank of 13 (worse than 87% compared with alternatives), Deutsche Börse shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Deutsche Börse. Price-to-Sales is 22 which means that the stock price compared with what market professionals expect for future profits is higher than 78% of comparable companies, indicating a low value concerning Deutsche Börse's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 14, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Deutsche Börse. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 19 and Dividend Yield, which is lower than 80% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 13, is a sell recommendation based on Deutsche Börse's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Deutsche Börse? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Deutsche Börse? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Deutsche Börse may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more

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Growth Strategy: Deutsche Börse Growth Momentum high

GROWTH METRICS	August 31, 2023
REVENUE GROWTH
REVENUE GROWTH	46
PROFIT GROWTH
PROFIT GROWTH	71
CAPITAL GROWTH
CAPITAL GROWTH	93
STOCK RETURNS
STOCK RETURNS	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	77

ANALYSIS: With an Obermatt Growth Rank of 77 (better than 77% compared with alternatives) for 2023, Deutsche Börse 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, where half of the indicators are below and half above average for Deutsche Börse. Profit Growth, with a rank of 71 (better than 71% of its competitors), and Capital Growth, with a rank of 93, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 46, which means that, currently, professionals expect the company to grow less than 54% of its competitors, and Stock Returns are at a rank of 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 77, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. ...read more

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Safety Strategy: Deutsche Börse Debt Financing Safety very solid

SAFETY METRICS	August 31, 2023
LEVERAGE
LEVERAGE	18
REFINANCING
REFINANCING	87
LIQUIDITY
LIQUIDITY	79
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	77

ANALYSIS: With an Obermatt Safety Rank of 77 (better than 77% compared with alternatives) for 2023, the company Deutsche Börse has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Deutsche Börse 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 Deutsche Börse. Refinancing is at 87, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 87% of its competitors. Liquidity is also good at 79, meaning the company generates more profit to service its debt than 79% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 18, which means the company has an above-average debt-to-equity ratio. It has more debt than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 77 (better than 77% compared with alternatives), Deutsche Börse 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 Deutsche Börse 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

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Combined financial peformance: Deutsche Börse Above-Average Financial Performance

COMBINED PERFORMANCE	August 31, 2023
VALUE
VALUE	13
GROWTH
GROWTH	77
SAFETY
SAFETY	79
COMBINED
COMBINED	67

ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), Deutsche Börse (Financial Exchanges & Data, Germany) shares have above-average financial characteristics compared with similar stocks. Shares of Deutsche Börse are low in value (priced high) with a consolidated Value Rank of 13 (worse than 87% of alternatives). But they show above-average growth (Growth Rank of 77) and are safely financed (Safety Rank of 77, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on Deutsche Börse's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Deutsche Börse exhibits low value (Obermatt Value Rank of 13), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 77). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 77) 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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