September 7, 2023
Top 10 Stock Laboratorios Richmond Sell Recommendation
How to read the ranks
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.
Snapshot: Laboratorios Richmond – Top 10 Stock in Mercado de Valores de Buenos Aires Index MERVAL
Laboratorios Richmond is listed as a top 10 stock on September 07, 2023 in the market index MERVAL because of its high performance in at least one of the Obermatt investment strategies. Based on the Obermatt 360° View of 7 (7% performer), Obermatt issues an overall sell recommendation for Laboratorios Richmond on September 07, 2023.
Snapshot: Obermatt Ranks
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
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 Laboratorios Richmond Sell
| 360 METRICS | September 7, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 55 |
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| GROWTH | ||||||||
| GROWTH | 23 |
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| SAFETY | ||||||||
| SAFETY | 10 |
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| SENTIMENT | ||||||||
| SENTIMENT | n/a |
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| 360° VIEW | ||||||||
| 360° VIEW | 7 |
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ANALYSIS: With an Obermatt 360° View of 7 (better than 7% compared with alternatives), overall professional sentiment and financial characteristics for the stock Laboratorios Richmond are critical, mostly below average.
RECOMMENDATION: With a consolidated 360° View of 7, Laboratorios Richmond is worse than 93% of all alternative stock investment opportunities based on the Obermatt Method. This means that Laboratorios Richmond shares are on the riskier side for investors.
Sentiment Strategy: n/a
| SENTIMENT METRICS | September 7, 2023 | |||||||
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| ANALYST OPINION | ||||||||
| ANALYST OPINION | n/a |
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| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
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| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | 9 |
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| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
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| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
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ANALYSIS:
RECOMMENDATION:
Value Strategy: Laboratorios Richmond Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Laboratorios Richmond shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Laboratorios Richmond. Price-to-Sales (P/S) is 92, which means that the stock price compared with what market professionals expect for future sales is lower than for 92% of comparable companies, indicating a good value concerning Laboratorios Richmond's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 52% of alternatives (48% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 1, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Laboratorios Richmond's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Laboratorios Richmond may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). ...read more
Growth Strategy: Laboratorios Richmond Growth Momentum negative
ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), Laboratorios Richmond 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 Laboratorios Richmond. Sales Growth has a below market rank of 3, which means that, currently, professionals expect the company to grow less than 97% of its competitors. The same is valid for Capital Growth, with a rank of 8, and Profit Growth, with a rank of 12. Currently, professionals expect the company to grow its profits less than 88% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 99, which means that the stock returns have recently been above 99% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, 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 Laboratorios Richmond, 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
Safety Strategy: Laboratorios Richmond Debt Financing Safety risky
| SAFETY METRICS | September 7, 2023 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 2 |
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| REFINANCING | ||||||||
| REFINANCING | 49 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 14 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 10 |
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ANALYSIS: With an Obermatt Safety Rank of 10 (better than 10% compared with alternatives), the company Laboratorios Richmond has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Laboratorios Richmond is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Laboratorios Richmond. Liquidity is at 14, meaning that the company generates less profit to service its debt than 86% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 2, meaning the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. Finally, Refinancing is at a rank of 49 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 51% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 10 (worse than 90% compared with alternatives), Laboratorios Richmond has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing.
Combined financial peformance: Laboratorios Richmond Lowest Financial Performance
| COMBINED PERFORMANCE | September 7, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 55 |
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| GROWTH | ||||||||
| GROWTH | 23 |
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| SAFETY | ||||||||
| SAFETY | 14 |
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| COMBINED | ||||||||
| COMBINED | 8 |
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ANALYSIS: With an Obermatt Combined Rank of 8 (worse than 92% compared with investment alternatives), Laboratorios Richmond (Pharmaceuticals, Argentina) shares have lower financial characteristics compared with similar stocks. Shares of Laboratorios Richmond are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives) but show below-average growth (Growth Rank of 23), and are riskily financed (Safety Rank of 10), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 8, is a sell recommendation based on Laboratorios Richmond's financial characteristics. As the company Laboratorios Richmond's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 23) and risky financing practices (Obermatt Safety Rank of 10), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 55% of comparable companies, may indicate 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. ...read more
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