September 28, 2023
Top 10 Stock Hera 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 Hera Buy

360 METRICS	September 28, 2023
VALUE
VALUE	90
GROWTH
GROWTH	51
SAFETY
SAFETY	77
SENTIMENT
SENTIMENT	38
360° VIEW
360° VIEW	72

ANALYSIS: With an Obermatt 360° View of 72 (better than 72% compared with alternatives), overall professional sentiment and financial characteristics for the stock Hera are above average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators above average for Hera. The consolidated Value Rank has an attractive rank of 90, which means that the share price of Hera 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 90% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 51, 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 77. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of only 38. Professional investors are more confident in 62% other stocks. ...read more

RECOMMENDATION: With a consolidated 360° View of 72, Hera is better positioned than 72% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 90), above-average growth (Growth Rank of 51), and safe financing practices (Safety 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, unless information not publicly available. Only the professional market sentiment is on the riskier side (Sentiment Rank of 38), but that could also mean an overreaction to negative news in the past. Good value is sometimes an indication that the company's future is challenging. If they have been enjoying above average growth and are still a good value, this may not continue. We recommend evaluating whether the future of Hera is as challenging as the low price of the stock despite good growth and safe financing practices suggest. Since the professional community is pessimistic, you may want to reflect these negative opinions in light of what you find reasonable to expect for the future. If you believe this pessimistic view is transitory, you have a solid investment case based on current financial factors. ...read more

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Sentiment Strategy: Professional Market Sentiment for Hera only reserved

SENTIMENT METRICS	September 28, 2023
ANALYST OPINION
ANALYST OPINION	75
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	62
MARKET PULSE
MARKET PULSE	1
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	38

ANALYSIS: With an Obermatt Sentiment Rank of 38 (better than 38% compared with alternatives), overall professional sentiment and engagement for the stock Hera is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Hera. Analyst Opinions are at a rank of 75 (better than 75% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. In addition, Analyst Opinions Change has a rank of 50, which means that stock research experts are changing their opinions for the better in recommending investing in the company. In other words, they are getting even more optimistic about investments in Hera. Finally, the Professional Investors rank is 62, which means that currently, professional investors hold more stock in this company than in 62% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 38 (less encouraging than 62% compared with investment alternatives), Hera has a reputation among professional investors that is below that of its competitors. Pros tend to favor investing in this company. But there is also a signal for caution. Market Pulse has a rank of 1, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 99% of competitors). This could mean future risks and should make investors careful. Attention to negative news for Hera is worthwhile because they may be early warning signals. Without those, all other professional signals are encouraging, especially since analysts are getting more optimistic. ...read more

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Value Strategy: Hera Stock Price Value at the top

VALUE METRICS	September 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	91
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	63
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	82
DIVIDEND YIELD
DIVIDEND YIELD	58
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	90

ANALYSIS: With an Obermatt Value Rank of 90 (better than 90% compared with alternatives) for 2023, Hera shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Hera. Price-to-Sales 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 for Hera's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 63% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 82. Compared with other companies in the same industry, dividend yields of Hera are expected to be higher than for 58% of all competitors (a Dividend Yield rank of 58). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 90, is a buy recommendation based on Hera's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Hera based on its detailed value metrics.

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Growth Strategy: Hera Growth Momentum good

GROWTH METRICS	September 28, 2023
REVENUE GROWTH
REVENUE GROWTH	30
PROFIT GROWTH
PROFIT GROWTH	67
CAPITAL GROWTH
CAPITAL GROWTH	27
STOCK RETURNS
STOCK RETURNS	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	51

ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), Hera 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 half of the indicators below and half above average for Hera. Profit Growth has a rank of 67, which means that currently professionals expect the company to grow its profits more than 67% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 81 (above 81% of alternative investments). But Sales Growth has a below the median rank of 30, which means that, currently, professionals expect the company to grow less than 70% of its competitors, and Capital Growth also has a lower rank of 27. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Hera. ...read more

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Safety Strategy: Hera Debt Financing Safety very solid

SAFETY METRICS	September 28, 2023
LEVERAGE
LEVERAGE	38
REFINANCING
REFINANCING	89
LIQUIDITY
LIQUIDITY	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	77

ANALYSIS: With an Obermatt Safety Rank of 77 (better than 77% compared with alternatives) for 2023, the company Hera has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Hera 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 Hera. Refinancing is at 89, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 89% of its competitors. Liquidity is also good at 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 38, which means the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 77 (better than 77% compared with alternatives), Hera has a financing structure that is significantly 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 Hera 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: Hera Top Financial Performance

COMBINED PERFORMANCE	September 28, 2023
VALUE
VALUE	90
GROWTH
GROWTH	51
SAFETY
SAFETY	67
COMBINED
COMBINED	90

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Hera (Multi-Utilities, Italy) shares have much better financial characteristics than comparable stocks. Shares of Hera are a good value (attractively priced) with a consolidated Value Rank of 90 (better than 90% of alternatives), show above-average growth (Growth Rank of 51), and are safely financed (Safety Rank of 77), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Hera's financial characteristics. As the company Hera's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 90), above-average growth (Obermatt Growth Rank of 51), and indicate that the company is safely financed (Obermatt Safety Rank of 77), 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 Hera. 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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