September 21, 2023
Top 10 Stock PageGroup Sell 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 PageGroup Sell

360 METRICS	September 21, 2023
VALUE
VALUE	33
GROWTH
GROWTH	13
SAFETY
SAFETY	73
SENTIMENT
SENTIMENT	5
360° VIEW
360° VIEW	8

ANALYSIS: With an Obermatt 360° View of 8 (better than 8% compared with alternatives), overall professional sentiment and financial characteristics for the stock PageGroup are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with three out of four metrics below average for PageGroup. The only rank that is above average is the consolidated Safety Rank at 73, which means that the company has a financing structure that is safer than those of 73% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the Value, Growth and Sentiment Ranks are all below average. The consolidated Value Rank has a less desirable rank of 33, which means that the share price of PageGroup is on the high side compared with typical size in indicators such as revenues, profits, and invested capital. The consolidated Growth Rank also has a low rank of 13, which implies that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. Finally, the consolidated Sentiment Rank is also low at a rank of 5, which means that professional investors are more pessimistic about the stock than for 95% of alternative investment opportunities. While Safety is strong, it’s not the most critical indicator, so we suggest proceeding with caution if you are considering this stock. ...read more

RECOMMENDATION: With a consolidated 360° View of 8, PageGroup is worse than 92% of all alternative stock investment opportunities based on the Obermatt Method. This means that PageGroup shares are on the riskier side for investors. As only the financing structure, namely the Safety Rank, is on the safer side and all other consolidated Obermatt Ranks are below-average, this is a riskier stock investment proposition. This is especially the case, since professional investor sentiment, the consolidated Obermatt Sentiment Rank, is also low at 5. The negative market view on PageGroup may be the high stock price (low value) or the low level of growth. This is a problem. As the Safety Rank is the least significant of the four consolidated Obermatt Ranks, we cannot identify enough positive facts that are visible today to make a case for this stock investment. The company may have a strong future which would justify the high stock price, but this is not visible from investor behavior today. As market sentiment is critical, you should be careful with paying more than market-average for this stock, and conduct further research into the company's future growth potential. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for PageGroup negative

SENTIMENT METRICS	September 21, 2023
ANALYST OPINION
ANALYST OPINION	27
OPINIONS CHANGE
OPINIONS CHANGE	33
PRO HOLDINGS
PRO HOLDINGS	14
MARKET PULSE
MARKET PULSE	20
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	5

ANALYSIS: With an Obermatt Sentiment Rank of 5 (better than 5% compared with alternatives), overall professional sentiment and engagement for the stock PageGroup is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for PageGroup. Analyst Opinions are at a rank of 27 (worse than 73% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. Worse, Analyst Opinions Change has a rank of 33 which means that stock research experts are getting even more pessimistic. It doesn't end with the analysts. Market Pulse is also low with a rank of 20, 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 80% of competitors). No wonder, the Professional Investors rank is only 14, which means that professional investors hold less stock in this company than in 86% of alternative investment opportunities. Pros tend to stay away from PageGroup, which may be due to a small company size but just as likely because of its relatively low Sentiment Rank. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 5 (less encouraging than 95% compared with investment alternatives), PageGroup has a reputation among professional investors that is far below that of its competitors. Investors should be careful with this stock right now. Further research is required if an investment is desired, because the facts found in the professional community are all negative. ...read more

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Value Strategy: PageGroup Stock Price Value below-average critical

VALUE METRICS	September 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	62
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	16
DIVIDEND YIELD
DIVIDEND YIELD	94
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	33

ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), PageGroup shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for PageGroup. Price-to-Sales (P/S) is 62, which means that the stock price compared with what market professionals expect for future sales is lower than for 62% of comparable companies, indicating a good value concerning PageGroup's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 94, which means that dividends are expected to be higher than for 94% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 84% of alternatives (only 16% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 57% of comparable companies, 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 33, is a hold recommendation based on PageGroup's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. ...read more

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Growth Strategy: PageGroup Growth Momentum negative

GROWTH METRICS	September 21, 2023
REVENUE GROWTH
REVENUE GROWTH	12
PROFIT GROWTH
PROFIT GROWTH	4
CAPITAL GROWTH
CAPITAL GROWTH	29
STOCK RETURNS
STOCK RETURNS	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	13

ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), PageGroup 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 PageGroup. Sales Growth has a below market rank of 12, which means that, currently, professionals expect the company to grow less than 88% of its competitors. The same is valid for Capital Growth, with a rank of 29, and Profit Growth, with a rank of 4. Currently, professionals expect the company to grow its profits less than 96% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 61, which means that the stock returns have recently been above 61% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, 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 PageGroup, 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

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Safety Strategy: PageGroup Debt Financing Safety above-average

SAFETY METRICS	September 21, 2023
LEVERAGE
LEVERAGE	53
REFINANCING
REFINANCING	63
LIQUIDITY
LIQUIDITY	83
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	73

ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company PageGroup has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of PageGroup 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 PageGroup. Leverage is at 53, meaning the company has a below-average debt-to-equity ratio. It has less debt than 53% of its competitors. Refinancing is at a rank of 63, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Finally, Liquidity is also good at a rank of 83, which means that the company generates more profit to service its debt than 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), PageGroup has a financing structure that is 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: PageGroup Lowest Financial Performance

COMBINED PERFORMANCE	September 21, 2023
VALUE
VALUE	33
GROWTH
GROWTH	13
SAFETY
SAFETY	83
COMBINED
COMBINED	10

ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), PageGroup (HR- & Employment Services, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of PageGroup are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives) and show below-average growth (Growth Rank of 13) but are safely financed (Safety Rank of 73), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on PageGroup's financial characteristics. As the company PageGroup's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 33) and low growth (Obermatt Growth Rank of 13), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 73) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. ...read more

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