November 9, 2023
Top 10 Stock DO & CO 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 DO & CO Strong Buy

360 METRICS	November 9, 2023
VALUE
VALUE	6
GROWTH
GROWTH	95
SAFETY
SAFETY	63
SENTIMENT
SENTIMENT	85
360° VIEW
360° VIEW	76

ANALYSIS: With an Obermatt 360° View of 76 (better than 76% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock DO & CO are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for DO & CO. The consolidated Growth Rank has a good rank of 95, 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 95% of competitors in the same industry. The consolidated Safety Rank at 63 means that the company has a financing structure that is safer than 63% 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 85, which means that professional investors are more optimistic about the stock than for 85% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 6, meaning that the share price of DO & CO is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 94% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 76, DO & CO is better positioned than 76% 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 95), a safe financing structure (Safety Rank of 63), and positive professional market sentiment (Sentiment Rank of 85), 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 DO & CO compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (95% better than peers). The value rank could be the reverse reflection of that (5%). 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 DO & CO very positive

SENTIMENT METRICS	November 9, 2023
ANALYST OPINION
ANALYST OPINION	90
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	61
MARKET PULSE
MARKET PULSE	87
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	85

ANALYSIS: With an Obermatt Sentiment Rank of 85 (better than 85% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock DO & CO is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for DO & CO. Analyst Opinions are at a rank of 90 (better than 90% 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 50, 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 DO & CO. The Professional Investors rank is 61, which means that currently, professional investors hold more stock in this company than in 61% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 87 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 87% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 85 (more positive than 85% compared with investment alternatives), DO & CO 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 DO & CO 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: DO & CO Stock Price Value low

VALUE METRICS	November 9, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	32
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	37
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1
DIVIDEND YIELD
DIVIDEND YIELD	22
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	6

ANALYSIS: With an Obermatt Value Rank of 6 (worse than 94% compared with alternatives), DO & CO 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 DO & CO. Price-to-Sales is 32 which means that the stock price compared with what market professionals expect for future profits is higher than 68% of comparable companies, indicating a low value concerning DO & CO's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 1, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of DO & CO. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 37 and Dividend Yield, which is lower than 78% 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 6, is a sell recommendation based on DO & CO's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for DO & CO? 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 DO & CO? 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. DO & CO 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: DO & CO Growth Momentum high

GROWTH METRICS	November 9, 2023
REVENUE GROWTH
REVENUE GROWTH	100
PROFIT GROWTH
PROFIT GROWTH	93
CAPITAL GROWTH
CAPITAL GROWTH	36
STOCK RETURNS
STOCK RETURNS	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	95

ANALYSIS: With an Obermatt Growth Rank of 95 (better than 95% compared with alternatives) for 2023, DO & CO 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 DO & CO. Sales Growth has a rank of 100 which means that currently, professionals expect the company to grow more than 100% of its competitors. Both Profit Growth, with a rank of 93, and Stock Returns, with a rank of 81, are also above average. But Capital Growth only has a rank of 36, which means that, currently, professionals expect the company to grow its invested capital less than 64% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 95, is a buy 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: DO & CO Debt Financing Safety above-average

SAFETY METRICS	November 9, 2023
LEVERAGE
LEVERAGE	18
REFINANCING
REFINANCING	81
LIQUIDITY
LIQUIDITY	56
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	63

ANALYSIS: With an Obermatt Safety Rank of 63 (better than 63% compared with alternatives), the company DO & CO has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of DO & CO 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 DO & CO. Refinancing is at 81, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 81% of its competitors. Liquidity is also good at 56, meaning the company generates more profit to service its debt than 56% 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 63 (better than 63% compared with alternatives), DO & CO has a financing structure that is 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 DO & CO 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: DO & CO Above-Average Financial Performance

COMBINED PERFORMANCE	November 9, 2023
VALUE
VALUE	6
GROWTH
GROWTH	95
SAFETY
SAFETY	56
COMBINED
COMBINED	56

ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), DO & CO (Diversified Support Services, Austria) shares have above-average financial characteristics compared with similar stocks. Shares of DO & CO are low in value (priced high) with a consolidated Value Rank of 6 (worse than 94% of alternatives). But they show above-average growth (Growth Rank of 95) and are safely financed (Safety Rank of 63, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 56, is a buy recommendation based on DO & CO's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company DO & CO exhibits low value (Obermatt Value Rank of 6), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 95). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 63) 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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