September 7, 2023
Top 10 Stock LEG Immobilien Strong Buy 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: LEG Immobilien – Top 10 Stock in Real Estate in Europe
LEG Immobilien is listed as a top 10 stock on September 07, 2023 in the market index R/E Europe because of its high performance in at least one of the Obermatt investment strategies. As three out of four consolidated Obermatt Ranks exhibit excellent performance, it is a solid investment where the risk of paying too much for the shares is low. Based on the Obermatt 360° View of 89 (top 89% performer), Obermatt assesses an overall strong buy recommendation for LEG Immobilien on September 07, 2023.
Snapshot: Obermatt Ranks
| Country | Germany |
| Industry | Real Estate: Operating Services |
| Index | CDAX, Low Emissions, R/E Europe, Renewables Users, MDAX |
| Size class | Large |
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 LEG Immobilien Strong Buy
| 360 METRICS | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 78 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 97 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 32 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 69 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 89 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 89 (better than 89% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock LEG Immobilien are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for LEG Immobilien. The consolidated Value Rank has an attractive rank of 78, which means that the share price of LEG Immobilien 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 78% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 97, 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. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 69. But the company’s financing is risky with a Safety rank of 32. This means 68% of comparable companies have a safer financing structure than LEG Immobilien. ...read more
RECOMMENDATION: With a consolidated 360° View of 89, LEG Immobilien is better positioned than 89% 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 78), above-average growth (Growth Rank of 97), and positive market sentiment in the professional investor community (Sentiment Rank of 69), 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 company financing structure is on the riskier side (Safety Rank of 32), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of LEG Immobilien is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more
Sentiment Strategy: Professional Market Sentiment for LEG Immobilien positive
ANALYSIS: With an Obermatt Sentiment Rank of 69 (better than 69% compared with alternatives), overall professional sentiment and engagement for the stock LEG Immobilien is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for LEG Immobilien. Analyst Opinions are at a rank of 58 (better than 58% 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 80, 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 LEG Immobilien. Finally, the Professional Investors rank is 66, which means that currently, professional investors hold more stock in this company than in 66% of alternative investment opportunities. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 69 (more positive than 69% compared with investment alternatives), LEG Immobilien has a reputation among professional investors that is above-average compared with 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 35, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 65% of competitors). This could mean future risks and should make investors careful. Attention to negative news for LEG Immobilien 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
Value Strategy: LEG Immobilien Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 78 (better than 78% compared with alternatives) for 2023, LEG Immobilien shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for LEG Immobilien. Price-to-Sales is 55 which means that the stock price compared with what market professionals expect for future sales is lower than for 55% of comparable companies, indicating a good value for LEG Immobilien's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 86% 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 65. Compared with other companies in the same industry, dividend yields of LEG Immobilien are expected to be higher than for 51% of all competitors (a Dividend Yield rank of 51). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 78, is a buy recommendation based on LEG Immobilien'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 LEG Immobilien based on its detailed value metrics.
Growth Strategy: LEG Immobilien Growth Momentum high
| GROWTH METRICS | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 82 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 100 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 66 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 51 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 97 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 97 (better than 97% compared with alternatives) for 2023, LEG Immobilien 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, with all four indicators above average for LEG Immobilien. Sales Growth has a value of 82, which means that, currently, professionals expect the company to grow more than 82% of its competitors. The same is valid for Profit Growth with a value of 100 and for Capital Growth with 66. In addition, Stock Returns had an above-average rank value of 51, which means they have been higher than 51% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 97, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, LEG Immobilien exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. ...read more
Safety Strategy: LEG Immobilien Debt Financing Safety below-average
| SAFETY METRICS | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 39 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 26 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 55 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 32 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 32 (better than 32% compared with alternatives), the company LEG Immobilien has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of LEG Immobilien 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 just one indicator above average for LEG Immobilien. Liquidity is at 55, meaning the company generates more profit to service its debt than 55% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 26, 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 74% of its competitors. Leverage is also high at a rank of 39, which means that the company has an above-average debt-to-equity ratio. It has more debt than 61% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 32 (worse than 68% compared with alternatives), LEG Immobilien has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more
Combined financial peformance: LEG Immobilien Top Financial Performance
| COMBINED PERFORMANCE | September 7, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 78 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 97 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 55 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 94 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), LEG Immobilien (Real Estate: Operating Services, Germany) shares have much better financial characteristics than comparable stocks. Shares of LEG Immobilien are a good value (attractively priced) with a consolidated Value Rank of 78 (better than 78% of alternatives), show above-average growth (Growth Rank of 97) but are riskily financed (Safety Rank of 32), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on LEG Immobilien's financial characteristics. As the company LEG Immobilien's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 78) and above-average growth (Obermatt Growth Rank of 97), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 32) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.