September 28, 2023
Top 10 Stock First Resources 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 First Resources Buy

360 METRICS	September 28, 2023
VALUE
VALUE	57
GROWTH
GROWTH	25
SAFETY
SAFETY	70
SENTIMENT
SENTIMENT	77
360° VIEW
360° VIEW	64

ANALYSIS: With an Obermatt 360° View of 64 (better than 64% compared with alternatives), overall professional sentiment and financial characteristics for the stock First Resources are above average. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for First Resources. The consolidated Value Rank has an attractive rank of 57, which means that the share price of First Resources is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 57% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 70. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 77. But the consolidated Growth Rank has a low rank of 25, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 75 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 64, First Resources is better positioned than 64% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 57), secure financing practices (Safety Rank of 70), and positive market sentiment in the professional investor community (Sentiment Rank of 77). 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. The company’s growth expectations are below the industry average (Growth Rank of 25), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of First Resources is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for First Resources very positive

SENTIMENT METRICS	September 28, 2023
ANALYST OPINION
ANALYST OPINION	47
OPINIONS CHANGE
OPINIONS CHANGE	35
PRO HOLDINGS
PRO HOLDINGS	81
MARKET PULSE
MARKET PULSE	95
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	77

ANALYSIS: With an Obermatt Sentiment Rank of 77 (better than 77% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock First Resources is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for First Resources. Analyst Opinions are at a rank of 47 (worse than 53% 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 35, which means that stock research experts are getting even more pessimistic. Other sentiment indicators are positive: The Professional Investors rank is 81, which means that professional investors hold more stock in this company than in 81% of alternative investment opportunities. So, pros tend to favor investing in this company. In addition, Market Pulse has a rank of 95, which means that the current professional news and professional social networks tend to be positive when discussing this company (more positive news than for 95% of competitors). While stock research analysts are getting ever more critical, many professional investors are committed to First Resources and the professional news channels are on the positive side. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 77 (more positive than 77% compared with investment alternatives), First Resources has a reputation among professional investors that is significantly higher than that of its competitors. This is an ambiguous picture: analysts are negative and getting even more critical, while the news in the market is positive. Who should investors believe? This is a difficult question in such a situation. Investors should proceed cautiously and verify not only the financial performance in the Obermatt Value, Growth and Safety Ranks but also independent news coverage of the company. ...read more

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Value Strategy: First Resources Stock Price Value better than average

VALUE METRICS	September 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	21
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	87
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	34
DIVIDEND YIELD
DIVIDEND YIELD	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	57

ANALYSIS: With an Obermatt Value Rank of 57 (better than 57% compared with alternatives), First Resources shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for First Resources. Price-to-Profit (also referred to as price-earnings, P/E) is 87 which means that the stock price compared with what market professionals expect for future profits is lower than for 87% of comparable companies, indicating a good value concerning First Resources's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34, which means that the stock price is lower as regards to invested capital than for 34% of comparable investments. On the other hand, Price-to-Sales is less favorable than 79% of alternatives (only 21% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 0% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 57, is a buy recommendation based on First Resources's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. ...read more

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Growth Strategy: First Resources Growth Momentum low

GROWTH METRICS	September 28, 2023
REVENUE GROWTH
REVENUE GROWTH	49
PROFIT GROWTH
PROFIT GROWTH	8
CAPITAL GROWTH
CAPITAL GROWTH	47
STOCK RETURNS
STOCK RETURNS	63
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	25

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), First Resources shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for First Resources. Sales Growth has a below market rank of 49, which means that, currently, professionals expect the company to grow less than 51% of its competitors. The same is valid for Capital Growth, with a rank of 47, and Profit Growth, with a rank of 8. Currently, professionals expect the company to grow its profits less than 92% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 63, which means that the stock returns have recently been above 63% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for First Resources, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. ...read more

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Safety Strategy: First Resources Debt Financing Safety above-average

SAFETY METRICS	September 28, 2023
LEVERAGE
LEVERAGE	61
REFINANCING
REFINANCING	46
LIQUIDITY
LIQUIDITY	70
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	70

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company First Resources 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 First Resources 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 First Resources. Leverage is at a rank of 61, meaning the company has a below-average debt-to-equity ratio. It has less debt than 61% of its competitors. Liquidity is also good at a rank of 70, meaning the company generates more profit to service its debt than 70% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 46, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), First Resources has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for First Resources. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: First Resources Above-Average Financial Performance

COMBINED PERFORMANCE	September 28, 2023
VALUE
VALUE	57
GROWTH
GROWTH	25
SAFETY
SAFETY	70
COMBINED
COMBINED	50

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% compared with investment alternatives), First Resources (Agricultural Products, Singapore) shares have above-average financial characteristics compared with similar stocks. Shares of First Resources are a good value (attractively priced) with a consolidated Value Rank of 57 (better than 57% of alternatives), are safely financed (Safety Rank of 70, which means low debt burdens), but show below-average growth (Growth Rank of 25). ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on First Resources's financial characteristics. As the company First Resources's key financial metrics exhibit good value (Obermatt Value Rank of 57) but low growth (Obermatt Growth Rank of 25) while being safely financed (Obermatt Safety Rank of 70), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 57% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more

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