September 21, 2023
Top 10 Stock MLP 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 MLP Strong Buy

360 METRICS	September 21, 2023
VALUE
VALUE	97
GROWTH
GROWTH	41
SAFETY
SAFETY	55
SENTIMENT
SENTIMENT	64
360° VIEW
360° VIEW	78

ANALYSIS: With an Obermatt 360° View of 78 (better than 78% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock MLP are very positive. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for MLP. The consolidated Value Rank has an attractive rank of 97, which means that the share price of MLP is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 97% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 55. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 64. But the consolidated Growth Rank has a low rank of 41, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 59 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 78, MLP is better positioned than 78% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 97), secure financing practices (Safety Rank of 55), and positive market sentiment in the professional investor community (Sentiment Rank of 64). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 41), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of MLP is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for MLP positive

SENTIMENT METRICS	September 21, 2023
ANALYST OPINION
ANALYST OPINION	91
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	72
MARKET PULSE
MARKET PULSE	26
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	64

ANALYSIS: With an Obermatt Sentiment Rank of 64 (better than 64% compared with alternatives), overall professional sentiment and engagement for the stock MLP is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for MLP. Analyst Opinions are at a rank of 91 (better than 91% 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 50, 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 MLP. Finally, the Professional Investors rank is 72, which means that currently, professional investors hold more stock in this company than in 72% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 64 (more positive than 64% compared with investment alternatives), MLP 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 26, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 74% of competitors). This could mean future risks and should make investors careful. Attention to negative news for MLP 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

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Value Strategy: MLP Stock Price Value at the top

VALUE METRICS	September 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	95
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	83
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	75
DIVIDEND YIELD
DIVIDEND YIELD	85
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	97

ANALYSIS: With an Obermatt Value Rank of 97 (better than 97% compared with alternatives) for 2023, MLP shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for MLP. Price-to-Sales is 95 which means that the stock price compared with what market professionals expect for future sales is lower than for 95% of comparable companies, indicating a good value for MLP's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 83% 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 75. Compared with other companies in the same industry, dividend yields of MLP are expected to be higher than for 85% of all competitors (a Dividend Yield rank of 85). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 97, is a buy recommendation based on MLP'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 MLP based on its detailed value metrics.

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Growth Strategy: MLP Growth Momentum low

GROWTH METRICS	September 21, 2023
REVENUE GROWTH
REVENUE GROWTH	44
PROFIT GROWTH
PROFIT GROWTH	40
CAPITAL GROWTH
CAPITAL GROWTH	72
STOCK RETURNS
STOCK RETURNS	35
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	41

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), MLP shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for MLP. Only Capital Growth has a good rank of 72, which means that currently professionals expect the company to grow its invested capital more than 40% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 44 which means that currently professionals expect the company to grow less than 56% of its competitors. Profit Growth with a rank of 40 and Stock Returns with a rank of 35 are also low (below 65% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for MLP is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. ...read more

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Safety Strategy: MLP Debt Financing Safety above-average

SAFETY METRICS	September 21, 2023
LEVERAGE
LEVERAGE	9
REFINANCING
REFINANCING	91
LIQUIDITY
LIQUIDITY	56
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	55

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company MLP 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 MLP 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 MLP. Refinancing is at 91, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 91% of its competitors. Liquidity is also good at 56, meaning the company generates more profit to service its debt than 56% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 9, which means the company has an above-average debt-to-equity ratio. It has more debt than 91% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), MLP has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and MLP could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. ...read more

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Combined financial peformance: MLP Top Financial Performance

COMBINED PERFORMANCE	September 21, 2023
VALUE
VALUE	97
GROWTH
GROWTH	41
SAFETY
SAFETY	56
COMBINED
COMBINED	78

ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), MLP (Asset Management & Custody, Germany) shares have much better financial characteristics than comparable stocks. Shares of MLP are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), are safely financed (Safety Rank of 55, which means low debt burdens), but show below-average growth (Growth Rank of 41). ...read more

RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on MLP's financial characteristics. As the company MLP's key financial metrics exhibit good value (Obermatt Value Rank of 97) but low growth (Obermatt Growth Rank of 41) while being safely financed (Obermatt Safety Rank of 55), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 97% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. ...read more

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