Fact based stock research
Grafton (LSE:GFTU)
IE00B00MZ448
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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.
Grafton stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 19 (worse than 81% compared with investment alternatives), Grafton (Trading & Distribution, Ireland) shares have lower financial characteristics compared with similar stocks. Shares of Grafton are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives) and show below-average growth (Growth Rank of 8) but are safely financed (Safety Rank of 75), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 19, is a sell recommendation based on Grafton's financial characteristics. As the company Grafton's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 35) and low growth (Obermatt Growth Rank of 8), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 75) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | Ireland |
Industry | Trading & Distribution |
Index | FTSE All Shares, FTSE 250, FTSE 350, Sound Pay Europe |
Size class | Large |
This stock has achievements: Insight 2019-03-08.
10-Oct-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Grafton
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 72 |
|
22 |
|
42 |
|
35 |
|
GROWTH | ||||||||
GROWTH | 93 |
|
29 |
|
43 |
|
8 |
|
SAFETY | ||||||||
SAFETY | 75 |
|
38 |
|
62 |
|
75 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
59 |
|
76 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
10 |
|
57 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 19 (worse than 81% compared with investment alternatives), Grafton (Trading & Distribution, Ireland) shares have lower financial characteristics compared with similar stocks. Shares of Grafton are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives) and show below-average growth (Growth Rank of 8) but are safely financed (Safety Rank of 75), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 19, is a sell recommendation based on Grafton's financial characteristics. As the company Grafton's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 35) and low growth (Obermatt Growth Rank of 8), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 75) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 72 |
|
22 |
|
42 |
|
35 |
|
GROWTH | ||||||||
GROWTH | 93 |
|
29 |
|
43 |
|
8 |
|
SAFETY | ||||||||
SAFETY | 75 |
|
38 |
|
62 |
|
75 |
|
COMBINED | ||||||||
COMBINED | 98 |
|
1 |
|
30 |
|
19 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), Grafton shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Grafton. Expected dividend yields are higher than for 58% of comparable companies (a Dividend Yield rank of 58), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 38 which means that the stock price compared with what market professionals expect for future profits is higher than for 62% of comparable companies, indicating a low value concerning Grafton's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Grafton with a rank of 19. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 81% of comparable companies, indicating a low value concerning Grafton's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on Grafton's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Grafton may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 49 |
|
38 |
|
43 |
|
38 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 94 |
|
36 |
|
29 |
|
19 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 48 |
|
1 |
|
61 |
|
55 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 32 |
|
61 |
|
63 |
|
58 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 72 |
|
22 |
|
42 |
|
35 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 8 (better than 8% compared with alternatives), Grafton shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Grafton. Sales Growth has a below market rank of 38, which means that, currently, professionals expect the company to grow less than 62% of its competitors. The same is valid for Capital Growth, with a rank of 4, and Profit Growth, with a rank of 15. Currently, professionals expect the company to grow its profits less than 85% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 60, which means that the stock returns have recently been above 60% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 8, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Grafton, 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. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 81 |
|
45 |
|
23 |
|
38 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 50 |
|
45 |
|
23 |
|
15 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
6 |
|
73 |
|
4 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 80 |
|
59 |
|
73 |
|
60 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 93 |
|
29 |
|
43 |
|
8 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 75 (better than 75% compared with alternatives) for 2024, the company Grafton has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Grafton 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 Grafton. Leverage is at 76, meaning the company has a below-average debt-to-equity ratio. It has less debt than 76% of its competitors. Refinancing is at a rank of 63, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Finally, Liquidity is also good at a rank of 50, which means that the company generates more profit to service its debt than 50% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 75 (better than 75% compared with alternatives), Grafton has a financing structure that is significantly 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. Investors may not have a debt issue with Grafton but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 56 |
|
43 |
|
68 |
|
76 |
|
REFINANCING | ||||||||
REFINANCING | 62 |
|
77 |
|
83 |
|
63 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 82 |
|
27 |
|
30 |
|
50 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 75 |
|
38 |
|
62 |
|
75 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
75 |
|
80 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
92 |
|
50 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
13 |
|
13 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
54 |
|
88 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
59 |
|
76 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for Grafton from October 10, 2024.
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