Fact based stock research
Palace Capital (LSE:PCA)
GB00BF5SGF06
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.
Palace Capital stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 31 (worse than 69% compared with investment alternatives), Palace Capital (Real Estate: Operating Services, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Palace Capital are a good value (attractively priced) with a consolidated Value Rank of 58 (better than 58% of alternatives), are safely financed (Safety Rank of 70, which means low debt burdens), but show below-average growth (Growth Rank of 3). ...read more
RECOMMENDATION: A Combined Rank of 31, is a hold recommendation based on Palace Capital's financial characteristics. As the company Palace Capital's key financial metrics exhibit good value (Obermatt Value Rank of 58) but low growth (Obermatt Growth Rank of 3) while being safely financed (Obermatt Safety Rank of 70), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 58% 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. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
Latest Obermatt Ranks
Log in or sign up to see the new 360° View and Sentiment ranks.
360° Viewnew| Country | United Kingdom |
| Industry | Real Estate: Operating Services |
| Index | FTSE All Shares, R/E Europe |
| Size class | X-Small |
This stock has achievements: Top 10 Stock.
25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Palace Capital
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 59 |
|
88 |
|
92 |
|
58 |
|
| GROWTH | ||||||||
| GROWTH | 95 |
|
13 |
|
5 |
|
3 |
|
| SAFETY | ||||||||
| SAFETY | 55 |
|
49 |
|
63 |
|
70 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
17 |
|
62 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
21 |
|
59 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 31 (worse than 69% compared with investment alternatives), Palace Capital (Real Estate: Operating Services, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Palace Capital are a good value (attractively priced) with a consolidated Value Rank of 58 (better than 58% of alternatives), are safely financed (Safety Rank of 70, which means low debt burdens), but show below-average growth (Growth Rank of 3). ...read more
RECOMMENDATION: A Combined Rank of 31, is a hold recommendation based on Palace Capital's financial characteristics. As the company Palace Capital's key financial metrics exhibit good value (Obermatt Value Rank of 58) but low growth (Obermatt Growth Rank of 3) while being safely financed (Obermatt Safety Rank of 70), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 58% 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. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 59 |
|
88 |
|
92 |
|
58 |
|
| GROWTH | ||||||||
| GROWTH | 95 |
|
13 |
|
5 |
|
3 |
|
| SAFETY | ||||||||
| SAFETY | 55 |
|
49 |
|
63 |
|
70 |
|
| COMBINED | ||||||||
| COMBINED | 50 |
|
42 |
|
50 |
|
31 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 58 (better than 58% compared with alternatives), Palace Capital shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Palace Capital. Price-to-Sales (P/S) is 56 which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value for Palace Capital's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 52. Finally, compared with other companies in the same industry, dividend yields of Palace Capital are expected to be higher than for 96% of all competitors (a Dividend Yield rank of 96). The only low rank is for expected profits with a Price-to-Profit Rank of 13, indicating that the market expects the company's profit to be low despite a high dividend. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 58, is a buy recommendation based on Palace Capital's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 38 |
|
74 |
|
71 |
|
56 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 24 |
|
74 |
|
69 |
|
13 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 66 |
|
89 |
|
55 |
|
52 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 86 |
|
86 |
|
92 |
|
96 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 59 |
|
88 |
|
92 |
|
58 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 3 (better than 3% compared with alternatives), Palace Capital 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 Palace Capital. Sales Growth has a below market rank of 1, which means that, currently, professionals expect the company to grow less than 99% of its competitors. The same is valid for Capital Growth, with a rank of 6, and Profit Growth, with a rank of 20. Currently, professionals expect the company to grow its profits less than 80% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 73, which means that the stock returns have recently been above 73% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 3, 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 Palace Capital, 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. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 93 |
|
33 |
|
3 |
|
1 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
12 |
|
1 |
|
20 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
5 |
|
3 |
|
6 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 78 |
|
75 |
|
71 |
|
73 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 95 |
|
13 |
|
5 |
|
3 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Palace Capital 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 Palace Capital 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 two out of three are above average for Palace Capital.Leverage is at 81, meaning the company has a below-average debt-to-equity ratio. It has less debt than 81% of its competitors.Refinancing is at a rank of 72, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 72% of its competitors. Liquidity is at 43, meaning that the company generates less profit to service its debt than 57% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Palace Capital has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Palace Capital more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 42 |
|
56 |
|
82 |
|
81 |
|
| REFINANCING | ||||||||
| REFINANCING | 52 |
|
73 |
|
67 |
|
72 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 54 |
|
24 |
|
26 |
|
43 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 55 |
|
49 |
|
63 |
|
70 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
92 |
|
34 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
1 |
|
43 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
3 |
|
89 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
17 |
|
62 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Palace Capital from April 25, 2024.
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.