December 21, 2023
Top 10 Stock Oeneo 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 Oeneo Hold

360 METRICS	December 21, 2023
VALUE
VALUE	4
GROWTH
GROWTH	47
SAFETY
SAFETY	96
SENTIMENT
SENTIMENT	16
360° VIEW
360° VIEW	31

ANALYSIS: With an Obermatt 360° View of 31 (better than 31% compared with alternatives), overall professional sentiment and financial characteristics for the stock Oeneo are below the industry average. The 360° View is based on consolidating four consolidated indicators, with three out of four metrics below average for Oeneo. The only rank that is above average is the consolidated Safety Rank at 96, which means that the company has a financing structure that is safer than those of 96% 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 4, which means that the share price of Oeneo 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 47, 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 16, which means that professional investors are more pessimistic about the stock than for 84% 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 31, Oeneo is worse than 69% of all alternative stock investment opportunities based on the Obermatt Method. 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 16. The negative market view on Oeneo 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 Oeneo negative

SENTIMENT METRICS	December 21, 2023
ANALYST OPINION
ANALYST OPINION	15
OPINIONS CHANGE
OPINIONS CHANGE	1
PRO HOLDINGS
PRO HOLDINGS	30
MARKET PULSE
MARKET PULSE	79
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	16

ANALYSIS: With an Obermatt Sentiment Rank of 16 (better than 16% compared with alternatives), overall professional sentiment and engagement for the stock Oeneo is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half the indicators below and half above average for Oeneo. Analyst Opinions are at a rank of 15 (worse than 85% 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 1, which means that stock research experts are getting even more pessimistic. In addition, the Professional Investors rank is 30, which means that professional investors hold less stock in this company than in 70% of alternative investment opportunities. Pros tend to invest in other companies. The only positive sentiment indicator for Oeneo is Market Pulse, with a rank of 79, which means that the current professional news and professional social networks tend to be positive when discussing this company (more positive news than for 79% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 16 (less encouraging than 84% compared with investment alternatives), Oeneo has a reputation among professional investors that is far below that of its competitors. This is an ambiguous picture: analysts are negative and getting even more critical while the news in the market is positive. Who should investors believe? This is a difficult question in such a situation. Investors should proceed cautiously and verify not only the financial performance in the Obermatt Value, Growth and Safety Ranks but also independent news coverage of the company. ...read more

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Value Strategy: Oeneo Stock Price Value low

VALUE METRICS	December 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	5
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	12
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	21
DIVIDEND YIELD
DIVIDEND YIELD	40
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	4

ANALYSIS: With an Obermatt Value Rank of 4 (worse than 96% compared with alternatives), Oeneo shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Oeneo. Price-to-Sales is 5 which means that the stock price compared with what market professionals expect for future profits is higher than 95% of comparable companies, indicating a low value concerning Oeneo's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 21, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Oeneo. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 12 and Dividend Yield, which is lower than 60% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 4, is a sell recommendation based on Oeneo's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Oeneo? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Oeneo? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Oeneo may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more

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Growth Strategy: Oeneo Growth Momentum low

GROWTH METRICS	December 21, 2023
REVENUE GROWTH
REVENUE GROWTH	63
PROFIT GROWTH
PROFIT GROWTH	49
CAPITAL GROWTH
CAPITAL GROWTH	45
STOCK RETURNS
STOCK RETURNS	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	47

ANALYSIS: With an Obermatt Growth Rank of 47 (better than 47% compared with alternatives), Oeneo 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 Oeneo. While Sales Growth ranks at 63, professionals currently expect the company to grow more than 63% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 49, which means that, currently, professionals expect the company to grow its profits less than 51% of its competitors, and Capital Growth has a low rank of 45. Historic stock returns were also below average with a current Stock Returns rank of 37 which means that the stock returns have recently been below 63% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 47, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. ...read more

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Safety Strategy: Oeneo Debt Financing Safety very solid

SAFETY METRICS	December 21, 2023
LEVERAGE
LEVERAGE	90
REFINANCING
REFINANCING	55
LIQUIDITY
LIQUIDITY	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	96

ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2023, the company Oeneo has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Oeneo 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 Oeneo. Leverage is at 90, meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors. Refinancing is at a rank of 55, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Finally, Liquidity is also good at a rank of 82, which means that the company generates more profit to service its debt than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), Oeneo has a financing structure that is significantly 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: Oeneo Above-Average Financial Performance

COMBINED PERFORMANCE	December 21, 2023
VALUE
VALUE	4
GROWTH
GROWTH	47
SAFETY
SAFETY	82
COMBINED
COMBINED	50

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% compared with investment alternatives), Oeneo (Metal & Glass Containers, France) shares have above-average financial characteristics compared with similar stocks. Shares of Oeneo are low in value (priced high) with a consolidated Value Rank of 4 (worse than 96% of alternatives) and show below-average growth (Growth Rank of 47) but are safely financed (Safety Rank of 96), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on Oeneo's financial characteristics. As the company Oeneo's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 4) and low growth (Obermatt Growth Rank of 47), 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 96) 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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