February 22, 2024
Top 10 Stock La Française des Jeux Hold 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 La Française des Jeux Hold

360 METRICS	February 22, 2024
VALUE
VALUE	27
GROWTH
GROWTH	61
SAFETY
SAFETY	82
SENTIMENT
SENTIMENT	69
360° VIEW
360° VIEW	45

ANALYSIS: With an Obermatt 360° View of 45 (better than 45% compared with alternatives), overall professional sentiment and financial characteristics for the stock La Française des Jeux are below the industry average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for La Française des Jeux. The consolidated Growth Rank has a good rank of 61, 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 61% of competitors in the same industry. The consolidated Safety Rank at 82 means that the company has a financing structure that is safer than 82% 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 69, which means that professional investors are more optimistic about the stock than for 69% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 27, meaning that the share price of La Française des Jeux is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 73% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 45, La Française des Jeux is worse than 55% 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 61), a safe financing structure (Safety Rank of 82), and positive professional market sentiment (Sentiment Rank of 69), 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 La Française des Jeux compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (61% better than peers). The value rank could be the reverse reflection of that (39%). 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 La Française des Jeux positive

SENTIMENT METRICS	February 22, 2024
ANALYST OPINION
ANALYST OPINION	16
OPINIONS CHANGE
OPINIONS CHANGE	89
PRO HOLDINGS
PRO HOLDINGS	87
MARKET PULSE
MARKET PULSE	44
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	69

ANALYSIS: With an Obermatt Sentiment Rank of 69 (better than 69% compared with alternatives), overall professional sentiment and engagement for the stock La Française des Jeux is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for La Française des Jeux. Analyst Opinions are at a rank of 16 (worse than 84% 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 89, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in La Française des Jeux. More encouragingly, the Professional Investors rank is 87, which means that professional investors hold more stock in this company than in 87% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 44, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 56% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 69 (more positive than 69% compared with investment alternatives), La Française des Jeux has a reputation among professional investors that is above-average compared with that of its competitors. The sentiment signals are mixed for La Française des Jeux. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: La Française des Jeux Stock Price Value below-average critical

VALUE METRICS	February 22, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	20
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	42
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14
DIVIDEND YIELD
DIVIDEND YIELD	92
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	27

ANALYSIS: With an Obermatt Value Rank of 27 (worse than 73% compared with alternatives), La Française des Jeux 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 La Française des Jeux. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 92% 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 20 which means that the stock price compared with what market professionals expect for future profits is higher than 80% of comparable companies, indicating a low value concerning La Française des Jeux's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 42 which means that the stock price compared with what market professionals expect for future profit levels is higher than 58% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 14 is also low. Compared with invested capital, the stock price is higher than for 86% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 27, is a hold recommendation based on La Française des Jeux's stock price compared with the company's operational size and dividend yields. Should dividend investors pick La Française des Jeux? 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 La Française des Jeux only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: La Française des Jeux Growth Momentum good

GROWTH METRICS	February 22, 2024
REVENUE GROWTH
REVENUE GROWTH	73
PROFIT GROWTH
PROFIT GROWTH	49
CAPITAL GROWTH
CAPITAL GROWTH	45
STOCK RETURNS
STOCK RETURNS	51
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61

ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), La Française des Jeux 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 La Française des Jeux. Sales Growth has a rank of 73 which means that currently professionals expect the company to grow more than 73% of its competitors. Stock Returns are also above average with a rank of 51. But Capital Growth has only a rank of 45, which means that currently professionals expect the company to grow its invested capital less than 55% of its competitors. Profit Growth is also low, with a rank of only 49, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 51% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. ...read more

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Safety Strategy: La Française des Jeux Debt Financing Safety very solid

SAFETY METRICS	February 22, 2024
LEVERAGE
LEVERAGE	71
REFINANCING
REFINANCING	40
LIQUIDITY
LIQUIDITY	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	82

ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2024, the company La Française des Jeux has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of La Française des Jeux 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 La Française des Jeux. Leverage is at a rank of 71, meaning the company has a below-average debt-to-equity ratio. It has less debt than 71% of its competitors. Liquidity is also good at a rank of 98, meaning the company generates more profit to service its debt than 98% 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 40, 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 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), La Française des Jeux has a financing structure that is significantly 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 La Française des Jeux. 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: La Française des Jeux Above-Average Financial Performance

COMBINED PERFORMANCE	February 22, 2024
VALUE
VALUE	27
GROWTH
GROWTH	61
SAFETY
SAFETY	98
COMBINED
COMBINED	61

ANALYSIS: With an Obermatt Combined Rank of 61 (better than 61% compared with investment alternatives), La Française des Jeux (Casinos & Gaming, France) shares have above-average financial characteristics compared with similar stocks. Shares of La Française des Jeux are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives). But they show above-average growth (Growth Rank of 61) and are safely financed (Safety Rank of 82, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 61, is a buy recommendation based on La Française des Jeux's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company La Française des Jeux exhibits low value (Obermatt Value Rank of 27), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 61). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 82) 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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