December 28, 2023
Top 10 Stock DFDS 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 DFDS Buy

360 METRICS	December 28, 2023
VALUE
VALUE	58
GROWTH
GROWTH	70
SAFETY
SAFETY	33
SENTIMENT
SENTIMENT	56
360° VIEW
360° VIEW	70

ANALYSIS: With an Obermatt 360° View of 70 (better than 70% compared with alternatives), overall professional sentiment and financial characteristics for the stock DFDS are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for DFDS. The consolidated Value Rank has an attractive rank of 58, which means that the share price of DFDS 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 58% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 70, 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. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 56. But the company’s financing is risky with a Safety rank of 33. This means 67% of comparable companies have a safer financing structure than DFDS. ...read more

RECOMMENDATION: With a consolidated 360° View of 70, DFDS is better positioned than 70% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 58), above-average growth (Growth Rank of 70), and positive market sentiment in the professional investor community (Sentiment Rank of 56), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 33), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of DFDS is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for DFDS positive

SENTIMENT METRICS	December 28, 2023
ANALYST OPINION
ANALYST OPINION	71
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	37
MARKET PULSE
MARKET PULSE	66
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	56

ANALYSIS: With an Obermatt Sentiment Rank of 56 (better than 56% compared with alternatives), overall professional sentiment and engagement for the stock DFDS is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for DFDS. Analyst Opinions are at a rank of 71 (better than 71% 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 currently, stock research experts are getting even more optimistic. Obermatt Market Pulse further supports this with a rank of 66, which means that the current professional news and professional social networks are generally positive when discussing this company (more positive news than for 66% of competitors). But there are few stock holdings by institutional investors. The Professional Investors rank is low at 37, which means that currently, professional investors hold less stock in this company than in 63% of alternative investment opportunities. Pros tend to invest in other companies. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 56 (more positive than 56% compared with investment alternatives), DFDS has a reputation among professional investors that is above-average compared with that of its competitors. Not having too many professionals invested in DFDS may be less of an issue, especially if the stock is from a smaller company where professionals typically invest less. It is natural for professional investors to focus on large and extra-large companies, as they provide more safety. Smaller companies attract fewer professionals in the shareholder community. Overall, the signals from the professionals are still quite favorable for investments in DFDS. ...read more

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Value Strategy: DFDS Stock Price Value better than average

VALUE METRICS	December 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	69
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	45
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56
DIVIDEND YIELD
DIVIDEND YIELD	63
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	58

ANALYSIS: With an Obermatt Value Rank of 58 (better than 58% compared with alternatives), DFDS shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for DFDS. Price-to-Sales (P/S) is 69 which means that the stock price compared with what market professionals expect for future sales is lower than for 69% of comparable companies, indicating a good value for DFDS's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56. Finally, compared with other companies in the same industry, dividend yields of DFDS are expected to be higher than for 63% of all competitors (a Dividend Yield rank of 63). The only low rank is for expected profits with a Price-to-Profit Rank of 45, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 58, is a buy recommendation based on DFDS's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. ...read more

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Growth Strategy: DFDS Growth Momentum good

GROWTH METRICS	December 28, 2023
REVENUE GROWTH
REVENUE GROWTH	71
PROFIT GROWTH
PROFIT GROWTH	33
CAPITAL GROWTH
CAPITAL GROWTH	100
STOCK RETURNS
STOCK RETURNS	16
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	70

ANALYSIS: With an Obermatt Growth Rank of 70 (better than 70% compared with alternatives), DFDS shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for DFDS. Sales Growth has a rank of 71 which means that currently, professionals expect the company to grow more than 71% of its competitors. Capital Growth is also above 33% of competitors with a rank of 100. But Profit Growth only has a rank of 33, which means that currently professionals expect the company to grow its profits less than 67% of its competitors. And Stock Returns have also been below average with a rank of only 16. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 70, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. ...read more

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Safety Strategy: DFDS Debt Financing Safety below-average

SAFETY METRICS	December 28, 2023
LEVERAGE
LEVERAGE	42
REFINANCING
REFINANCING	25
LIQUIDITY
LIQUIDITY	48
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	33

ANALYSIS: With an Obermatt Safety Rank of 33 (better than 33% compared with alternatives), the company DFDS 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 DFDS 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 all three metrics below average for DFDS. Liquidity is at 48, meaning that the company generates less profit to service its debt than 52% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 42, meaning the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. Finally, Refinancing is at a rank of 25 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 75% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 33 (worse than 67% compared with alternatives), DFDS has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing.

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Combined financial peformance: DFDS Above-Average Financial Performance

COMBINED PERFORMANCE	December 28, 2023
VALUE
VALUE	58
GROWTH
GROWTH	70
SAFETY
SAFETY	48
COMBINED
COMBINED	60

ANALYSIS: With an Obermatt Combined Rank of 60 (better than 60% compared with investment alternatives), DFDS (Marine, Denmark) shares have above-average financial characteristics compared with similar stocks. Shares of DFDS are a good value (attractively priced) with a consolidated Value Rank of 58 (better than 58% of alternatives), show above-average growth (Growth Rank of 70) but are riskily financed (Safety Rank of 33), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 60, is a buy recommendation based on DFDS's financial characteristics. As the company DFDS's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 58) and above-average growth (Obermatt Growth Rank of 70), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 33) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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