June 8, 2023
Top 10 Stock Embracer Group 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: Embracer Group – Top 10 Stock in Sound Pay Practices in Europe
Embracer Group is listed as a top 10 stock on June 08, 2023 in the market index Sound Pay Europe 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 below average and thus a signal for caution. Based on the Obermatt 360° View of 73 (high 73% performer), Obermatt assesses an overall buy recommendation for Embracer Group on June 08, 2023.
Snapshot: Obermatt Ranks
| Country | Sweden |
| Industry | Interactive Home Entertainment |
| Index | Sound Pay Europe |
| 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° Assessment Embracer Group Buy
| 360 METRICS | June 8, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 91 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 97 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 29 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 23 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 73 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 73 (better than 73% compared with alternatives), overall professional sentiment and engagement for the stock Embracer Group are above average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for Embracer Group. The consolidated Value Rank has an attractive rank of 91, which means that the share price of Embracer Group 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 91% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 97, 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. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of 23. Professional investors are more confident in 77% other stocks. Worryingly, the company has risky financing, with a Safety rank of 29. This means 71% of comparable companies have a safer financing structure than Embracer Group. ...read more
RECOMMENDATION: With a 360° View of 73, Embracer Group is better positioned than 73% of all alternative stock investment opportunities based on the Obermatt Method. Even though half of the consolidated Obermatt Ranks are above-average, namely the Value Rank at 91 and the Growth Rank above-average at 97, the picture is still mixed. The professional investor community is skeptical, with the Sentiment Rank below-average at 23. In addition, the company financing structure is on the riskier side (Safety Rank of 29). Since the company is good value and the share price low, it should attract investors, yet professionals are skeptical. One may be tempted by above-average growth, but that could also change quickly, as past performance is not a good indicator of future performance. Since the financing structure is on the risky side, investors should 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 Embracer Group negative
ANALYSIS: With an Obermatt Sentiment Rank of 23 (better than 23% compared with alternatives), overall professional sentiment and engagement for the stock Embracer Group 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 Embracer Group. Analyst Opinions are at a rank of 45 (worse than 55% 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 34 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 33, 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 67% of competitors). No wonder, the Professional Investors rank is only 34, which means that professional investors hold less stock in this company than in 66% of alternative investment opportunities. Pros tend to stay away from Embracer Group, which may be due to a small company size but just as likely because of its relatively low Sentiment Rank. ...read more
RECOMMENDATION: With an Obermatt Sentiment Rank of 23 (less encouraging than 77% compared with investment alternatives), Embracer Group 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: Embracer Group Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2023, Embracer Group shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Embracer Group. Price-to-Sales (P/S) 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 regarding Embracer Group's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 100% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 95. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Embracer Group (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 91, is a strong buy recommendation based on Embracer Group's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. ...read more
Growth Strategy: Embracer Group Growth Momentum high
ANALYSIS: With an Obermatt Growth Rank of 97 (better than 97% compared with alternatives) for 2023, Embracer Group 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 Embracer Group. Profit Growth, with a rank of 98 (better than 98% of its competitors), and Capital Growth, with a rank of 98, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 42, which means that, currently, professionals expect the company to grow less than 58% of its competitors, and Stock Returns are at a rank of 25. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 97, 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
Safety Strategy: Embracer Group Debt Financing Safety below-average
| SAFETY METRICS | June 8, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 40 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 50 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 11 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 29 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company Embracer Group 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 Embracer Group 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 Embracer Group and the other two below average. Refinancing is at 50, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 50% of its competitors. But Leverage is high with a rank of 40, meaning the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. Liquidity is also on the riskier side with a rank of 11, meaning the company generates less profit to service its debt than 89% of its competitors. ...read more
RECOMMENDATION: With an Obermatt Safety Rank of 29 (worse than 71% compared with alternatives), Embracer Group has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Embracer Group are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. ...read more
Combined financial peformance: Embracer Group Top Financial Performance
| COMBINED PERFORMANCE | June 8, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 91 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 97 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 11 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 94 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Embracer Group (Interactive Home Entertainment, Sweden) shares have much better financial characteristics than comparable stocks. Shares of Embracer Group are a good value (attractively priced) with a consolidated Obermatt Value Rank of 91 (better than 91% of alternatives), show above-average growth (Growth Rank of 97) but are riskily financed (Safety Rank of 29), which means above-average debt burdens. ...read more
RECOMMENDATION: An Obermatt Combined Rank of 94, is a strong buy recommendation based on Embracer Group's financial characteristics. As the company Embracer Group's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 91) and above-average growth (Obermatt Growth Rank of 97), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 29) 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
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.