November 23, 2023
Top 10 Stock Exxaro 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 Exxaro Buy

360 METRICS	November 23, 2023
VALUE
VALUE	60
GROWTH
GROWTH	57
SAFETY
SAFETY	70
SENTIMENT
SENTIMENT	50
360° VIEW
360° VIEW	69

ANALYSIS: With an Obermatt 360° View of 69 (better than 69% compared with alternatives), overall professional sentiment and financial characteristics for the stock Exxaro are above average. The 360° View is based on consolidating four consolidated indicators, with all four indicators above average for Exxaro. The consolidated Value Rank has an attractive rank of 60, which means that the share price of Exxaro 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 60% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 57, 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. The company is also safely financed with a Safety rank of 70. Finally, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 50. ...read more

RECOMMENDATION: With a consolidated 360° View of 69, Exxaro is better positioned than 69% of all alternative stock investment opportunities based on the Obermatt Method. As all consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 60), above-average growth (Growth Rank of 57), safe financing practices (Safety Rank of 70), and a positive market sentiment in the professional investor community (Sentiment Rank of 50), it is a solid stock investment where the risk of paying too much for the shares is limited and disappointments are less likely to occur, unless information not publicly available. High-Value Ranks sometimes indicate that the company's future is challenging. If they are safely financed and have above average growth, and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Exxaro is as difficult as the stock’s low price, despite what good growth and safe financing practice suggest. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible, which may indicate good timing right now. ...read more

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Sentiment Strategy: Professional Market Sentiment for Exxaro positive

SENTIMENT METRICS	November 23, 2023
ANALYST OPINION
ANALYST OPINION	39
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	49
MARKET PULSE
MARKET PULSE	59
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	50

ANALYSIS: With an Obermatt Sentiment Rank of 50 (better than 50% compared with alternatives), overall professional sentiment and engagement for the stock Exxaro is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and above average for Exxaro. Analyst Opinions are at a rank of 39 (worse than 61% 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 50 which means that stock research experts are changing their opinions for the better. In other words, they are getting more optimistic of stock investments in Exxaro. Market Pulse is also positive with a rank of 59, which means that the current professional news and professional social networks are positive in their discussions about this company (more positive news than for 59% of competitors). Only professional investors tend to be absent with a Professional Investors rank of 49, which means that professional investors hold less stock in this company than in 51% of alternative investment opportunities. Pros tend to invest in other companies. But that could also be due to the size of the company. Professional investors tend to invest in XL and XXL companies. If the company is smaller than that, that fact alone may explain why there are fewer pros present. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 50 (more positive than 50% compared with investment alternatives), Exxaro has a reputation among professional investors that is above-average compared with that of its competitors. Since analysts are getting more optimistic and the professional communication channels are positive, it may be an indication of a company that has the difficult times behind it or the stocks’ value is improving. For medium to smaller companies, the positive sentiment indicators outshine the negative. ...read more

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Value Strategy: Exxaro Stock Price Value better than average

VALUE METRICS	November 23, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	23
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	80
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56
DIVIDEND YIELD
DIVIDEND YIELD	98
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	60

ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Exxaro shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Exxaro. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 80 which means that the stock price compared with what market professionals expect for future profits is lower than for 80% of comparable companies, indicating a good value concerning Exxaro's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56, and for Dividend Yield with a Dividend Yield Rank of 98. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 77% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 23). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Exxaro's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Exxaro has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Exxaro shares. ...read more

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Growth Strategy: Exxaro Growth Momentum good

GROWTH METRICS	November 23, 2023
REVENUE GROWTH
REVENUE GROWTH	55
PROFIT GROWTH
PROFIT GROWTH	39
CAPITAL GROWTH
CAPITAL GROWTH	60
STOCK RETURNS
STOCK RETURNS	51
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	57

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Exxaro 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 all but one indicator above average for Exxaro. Sales Growth has a rank of 55 which means that currently, professionals expect the company to grow more than 55% of its competitors. Capital Growth is also above 39% of competitors with a rank of 60, and Stock Returns with the rank of 51 is also an outperformance. Only Profit Growth is low with a rank of 39 which means that currently, professionals expect the company to grow its profits less than 61% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, 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, Exxaro is a good growth stock. ...read more

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Safety Strategy: Exxaro Debt Financing Safety above-average

SAFETY METRICS	November 23, 2023
LEVERAGE
LEVERAGE	70
REFINANCING
REFINANCING	69
LIQUIDITY
LIQUIDITY	60
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	70

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Exxaro 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 Exxaro 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, where all three are above average for Exxaro. Leverage is at 70, meaning the company has a below-average debt-to-equity ratio. It has less debt than 70% of its competitors. Refinancing is at a rank of 69, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 69% of its competitors. Finally, Liquidity is also good at a rank of 60, which means that the company generates more profit to service its debt than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Exxaro has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Exxaro Above-Average Financial Performance

COMBINED PERFORMANCE	November 23, 2023
VALUE
VALUE	60
GROWTH
GROWTH	57
SAFETY
SAFETY	60
COMBINED
COMBINED	73

ANALYSIS: With an Obermatt Combined Rank of 73 (better than 73% compared with investment alternatives), Exxaro (Coal & Consumable Fuels, South Africa) shares have above-average financial characteristics compared with similar stocks. Shares of Exxaro are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives), show above-average growth (Growth Rank of 57), and are safely financed (Safety Rank of 70), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on Exxaro's financial characteristics. As the company Exxaro's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 60), above-average growth (Obermatt Growth Rank of 57), and indicate that the company is safely financed (Obermatt Safety Rank of 70), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Exxaro. 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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