December 21, 2023
Top 10 Stock PotlatchDeltic 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 PotlatchDeltic Sell

360 METRICS	December 21, 2023
VALUE
VALUE	47
GROWTH
GROWTH	19
SAFETY
SAFETY	55
SENTIMENT
SENTIMENT	39
360° VIEW
360° VIEW	24

ANALYSIS: With an Obermatt 360° View of 24 (better than 24% compared with alternatives), overall professional sentiment and financial characteristics for the stock PotlatchDeltic are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with three out of four metrics below average for PotlatchDeltic. The only rank that is above average is the consolidated Safety Rank at 55, which means that the company has a financing structure that is safer than those of 55% 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 47, which means that the share price of PotlatchDeltic 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 19, 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 39, which means that professional investors are more pessimistic about the stock than for 61% 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 24, PotlatchDeltic is worse than 76% of all alternative stock investment opportunities based on the Obermatt Method. This means that PotlatchDeltic 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 39. The negative market view on PotlatchDeltic 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 PotlatchDeltic only reserved

SENTIMENT METRICS	December 21, 2023
ANALYST OPINION
ANALYST OPINION	48
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	29
MARKET PULSE
MARKET PULSE	48
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	39

ANALYSIS: With an Obermatt Sentiment Rank of 39 (better than 39% compared with alternatives), overall professional sentiment and engagement for the stock PotlatchDeltic is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for PotlatchDeltic. Analyst Opinions are at a rank of 48 (worse than 52% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50, which means that stock research experts have found something to make them more positive about investing in the company. In other words, they are getting more optimistic of stock investments in PotlatchDeltic. But the Professional Investors rank is low at 29, which means that professional investors hold less stock in this company than in 71% of alternative investment opportunities. Pros tend to invest in other companies. Market Pulse is also low at a rank of 48, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 52% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 39 (less encouraging than 61% compared with investment alternatives), PotlatchDeltic has a reputation among professional investors that is below that of its competitors. These are quite a few negative sentiment signals. One may want to trust the analysts that are changing their opinions. They may be early indications of better times, especially if the company is a smaller one. But If they are an extra large company, they should have more professional stockholders than are currently present. ...read more

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Value Strategy: PotlatchDeltic Stock Price Value below-average critical

VALUE METRICS	December 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	9
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	55
DIVIDEND YIELD
DIVIDEND YIELD	79
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	47

ANALYSIS: With an Obermatt Value Rank of 47 (worse than 53% compared with alternatives), PotlatchDeltic shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for PotlatchDeltic. Expected dividend yields are higher than for 79% of comparable companies (a Dividend Yield rank of 79), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 38 which means that the stock price compared with what market professionals expect for future profits is higher than for 62% of comparable companies, indicating a low value concerning PotlatchDeltic's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for PotlatchDeltic with a rank of 9. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 91% of comparable companies, indicating a low value concerning PotlatchDeltic's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 47, is a hold recommendation based on PotlatchDeltic's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, PotlatchDeltic may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. ...read more

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Growth Strategy: PotlatchDeltic Growth Momentum negative

GROWTH METRICS	December 21, 2023
REVENUE GROWTH
REVENUE GROWTH	50
PROFIT GROWTH
PROFIT GROWTH	18
CAPITAL GROWTH
CAPITAL GROWTH	18
STOCK RETURNS
STOCK RETURNS	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19

ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), PotlatchDeltic 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 PotlatchDeltic. While Sales Growth ranks at 50, professionals currently expect the company to grow more than 50% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 18, which means that, currently, professionals expect the company to grow its profits less than 82% of its competitors, and Capital Growth has a low rank of 18. Historic stock returns were also below average with a current Stock Returns rank of 45 which means that the stock returns have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell 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: PotlatchDeltic Debt Financing Safety above-average

SAFETY METRICS	December 21, 2023
LEVERAGE
LEVERAGE	62
REFINANCING
REFINANCING	43
LIQUIDITY
LIQUIDITY	54
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	55

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company PotlatchDeltic 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 PotlatchDeltic 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 PotlatchDeltic. Leverage is at a rank of 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Liquidity is also good at a rank of 54, meaning the company generates more profit to service its debt than 54% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 43, 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 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), PotlatchDeltic has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for PotlatchDeltic. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: PotlatchDeltic Below-Average Financial Performance

COMBINED PERFORMANCE	December 21, 2023
VALUE
VALUE	47
GROWTH
GROWTH	19
SAFETY
SAFETY	54
COMBINED
COMBINED	32

ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), PotlatchDeltic (REITs: Specialized, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of PotlatchDeltic are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives) and show below-average growth (Growth Rank of 19) but are safely financed (Safety Rank of 55), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on PotlatchDeltic's financial characteristics. As the company PotlatchDeltic's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 47) and low growth (Obermatt Growth Rank of 19), 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 55) 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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