November 23, 2023
Top 10 Stock Indocement Strong 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 Indocement Strong Buy

360 METRICS	November 23, 2023
VALUE
VALUE	32
GROWTH
GROWTH	79
SAFETY
SAFETY	86
SENTIMENT
SENTIMENT	94
360° VIEW
360° VIEW	96

ANALYSIS: With an Obermatt 360° View of 96 (better than 96% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Indocement are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Indocement. The consolidated Growth Rank has a good rank of 79, 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. This means that growth is higher than for 79% of competitors in the same industry. The consolidated Safety Rank at 86 means that the company has a financing structure that is safer than 86% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 94, which means that professional investors are more optimistic about the stock than for 94% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 32, meaning that the share price of Indocement is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 68% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 96, Indocement is better positioned than 96% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 79), a safe financing structure (Safety Rank of 86), and positive professional market sentiment (Sentiment Rank of 94), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Indocement compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (79% better than peers). The value rank could be the reverse reflection of that (21%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Indocement very positive

SENTIMENT METRICS	November 23, 2023
ANALYST OPINION
ANALYST OPINION	74
OPINIONS CHANGE
OPINIONS CHANGE	47
PRO HOLDINGS
PRO HOLDINGS	70
MARKET PULSE
MARKET PULSE	89
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	94

ANALYSIS: With an Obermatt Sentiment Rank of 94 (better than 94% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Indocement is very positive. The Sentiment Rank is based on consolidating four sentiment indicators where all but one are above average for Indocement. Analyst Opinions are at a rank of 74 (better than 74% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. The Professional Investors rank is also good at 70, which means that currently, professional investors hold more stock in this company than in 70% of alternative investment opportunities. Pros tend to favor investing in this company. In addition, Market Pulse has a rank of 89 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 89% of competitors). But Analyst Opinions Change has a below-average rank of 47, which means that stock research experts are currently changing their opinions for the worse when it comes to recommending this stock. In other words, they are getting more critical of investments in Indocement. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 94 (more positive than 94% compared with investment alternatives), Indocement has a reputation among professional investors that is significantly higher than that of its competitors. This is an early sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it might just materialize in the future. ...read more

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Value Strategy: Indocement Stock Price Value below-average critical

VALUE METRICS	November 23, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	34
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	30
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	42
DIVIDEND YIELD
DIVIDEND YIELD	79
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	32

ANALYSIS: With an Obermatt Value Rank of 32 (worse than 68% compared with alternatives), Indocement shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Indocement. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 79% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 34 which means that the stock price compared with what market professionals expect for future profits is higher than 66% of comparable companies, indicating a low value concerning Indocement's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 30 which means that the stock price compared with what market professionals expect for future profit levels is higher than 70% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 42 is also low. Compared with invested capital, the stock price is higher than for 58% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 32, is a hold recommendation based on Indocement's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Indocement? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Indocement only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: Indocement Growth Momentum high

GROWTH METRICS	November 23, 2023
REVENUE GROWTH
REVENUE GROWTH	49
PROFIT GROWTH
PROFIT GROWTH	63
CAPITAL GROWTH
CAPITAL GROWTH	91
STOCK RETURNS
STOCK RETURNS	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79

ANALYSIS: With an Obermatt Growth Rank of 79 (better than 79% compared with alternatives) for 2023, Indocement 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 Indocement. Profit Growth, with a rank of 63 (better than 63% of its competitors), and Capital Growth, with a rank of 91, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 49, which means that, currently, professionals expect the company to grow less than 51% of its competitors, and Stock Returns are at a rank of 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 79, 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

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Safety Strategy: Indocement Debt Financing Safety very solid

SAFETY METRICS	November 23, 2023
LEVERAGE
LEVERAGE	80
REFINANCING
REFINANCING	69
LIQUIDITY
LIQUIDITY	78
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	86

ANALYSIS: With an Obermatt Safety Rank of 86 (better than 86% compared with alternatives) for 2023, the company Indocement has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Indocement 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 Indocement. Leverage is at 80, meaning the company has a below-average debt-to-equity ratio. It has less debt than 80% 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 78, which means that the company generates more profit to service its debt than 78% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 86 (better than 86% compared with alternatives), Indocement 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. ...read more

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Combined financial peformance: Indocement Top Financial Performance

COMBINED PERFORMANCE	November 23, 2023
VALUE
VALUE	32
GROWTH
GROWTH	79
SAFETY
SAFETY	78
COMBINED
COMBINED	88

ANALYSIS: With an Obermatt Combined Rank of 88 (better than 88% compared with investment alternatives), Indocement (Construction Materials, Indonesia) shares have much better financial characteristics than comparable stocks. Shares of Indocement are low in value (priced high) with a consolidated Value Rank of 32 (worse than 68% of alternatives). But they show above-average growth (Growth Rank of 79) and are safely financed (Safety Rank of 86, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 88, is a strong buy recommendation based on Indocement's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Indocement exhibits low value (Obermatt Value Rank of 32), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 79). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 86) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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