Fact based stock research
Real Estate Credit Investments (LSE:RECI)
GB00B0HW5366
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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.
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Real Estate Credit Investments stock research in summary
realestatecreditinvestments.com
ANALYSIS: With an Obermatt Combined Rank of 96 (better than 96% compared with investment alternatives), Real Estate Credit Investments (Thrifts & Mortgage Finance, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Real Estate Credit Investments are a good value (attractively priced) with a consolidated Value Rank of 84 (better than 84% of alternatives), show above-average growth (Growth Rank of 52), and are safely financed (Safety Rank of 82), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 96, is a strong buy recommendation based on Real Estate Credit Investments's financial characteristics. As the company Real Estate Credit Investments's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 84), above-average growth (Obermatt Growth Rank of 52), and indicate that the company is safely financed (Obermatt Safety Rank of 82), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Real Estate Credit Investments. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | United Kingdom |
Industry | Thrifts & Mortgage Finance |
Index | FTSE All Shares |
Size class | X-Small |
25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Real Estate Credit Investments
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 85 |
|
75 |
|
74 |
|
84 |
|
GROWTH | ||||||||
GROWTH | 6 |
|
29 |
|
60 |
|
52 |
|
SAFETY | ||||||||
SAFETY | 84 |
|
72 |
|
75 |
|
82 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
10 |
|
68 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
33 |
|
93 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 96 (better than 96% compared with investment alternatives), Real Estate Credit Investments (Thrifts & Mortgage Finance, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Real Estate Credit Investments are a good value (attractively priced) with a consolidated Value Rank of 84 (better than 84% of alternatives), show above-average growth (Growth Rank of 52), and are safely financed (Safety Rank of 82), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 96, is a strong buy recommendation based on Real Estate Credit Investments's financial characteristics. As the company Real Estate Credit Investments's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 84), above-average growth (Obermatt Growth Rank of 52), and indicate that the company is safely financed (Obermatt Safety Rank of 82), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Real Estate Credit Investments. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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 | 85 |
|
75 |
|
74 |
|
84 |
|
GROWTH | ||||||||
GROWTH | 6 |
|
29 |
|
60 |
|
52 |
|
SAFETY | ||||||||
SAFETY | 84 |
|
72 |
|
75 |
|
82 |
|
COMBINED | ||||||||
COMBINED | 75 |
|
72 |
|
98 |
|
96 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 84 (better than 84% compared with alternatives) for 2024, Real Estate Credit Investments shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Real Estate Credit Investments. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 73 which means that the stock price compared with what market professionals expect for future profits is lower than for 73% of comparable companies, indicating a good value concerning Real Estate Credit Investments's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 65, and for Dividend Yield with a Dividend Yield Rank of 100. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 75% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 25). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 84, is a buy recommendation based on Real Estate Credit Investments's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Real Estate Credit Investments has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Real Estate Credit Investments shares. 9. 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) | 43 |
|
25 |
|
27 |
|
25 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 74 |
|
51 |
|
51 |
|
73 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 62 |
|
62 |
|
59 |
|
65 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 98 |
|
98 |
|
94 |
|
100 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 85 |
|
75 |
|
74 |
|
84 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 52 (better than 52% compared with alternatives), Real Estate Credit Investments shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Real Estate Credit Investments. Sales Growth has a rank of 72, which means that, currently, professionals expect the company to grow more than 72% of its competitors. Profit Growth with a rank of 86 is also above average. But Capital Growth has only a rank of 31, and Stock Returns with 34 are also below-average. Stock returns for Real Estate Credit Investments have recently been below 66% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 52, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Real Estate Credit Investments. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 1 |
|
90 |
|
73 |
|
72 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | n/a |
|
15 |
|
81 |
|
86 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
16 |
|
25 |
|
31 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 60 |
|
43 |
|
46 |
|
34 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 6 |
|
29 |
|
60 |
|
52 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2024, the company Real Estate Credit Investments has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Real Estate Credit Investments 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 Real Estate Credit Investments. Refinancing is at 61, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 61% of its competitors. Liquidity is also good at 88, meaning the company generates more profit to service its debt than 88% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 34, which means the company has an above-average debt-to-equity ratio. It has more debt than 66% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), Real Estate Credit Investments has a financing structure that is significantly 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 Real Estate Credit Investments 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. In the long-term, investors may have a debt challenge with Real Estate Credit Investments and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 72 |
|
48 |
|
41 |
|
34 |
|
REFINANCING | ||||||||
REFINANCING | 68 |
|
53 |
|
51 |
|
61 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 61 |
|
78 |
|
82 |
|
88 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 84 |
|
72 |
|
75 |
|
82 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
78 |
|
91 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
14 |
|
98 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
7 |
|
11 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
10 |
|
68 |
|
new |
Stock analysis by the purely fact based Obermatt Method for Real Estate Credit Investments from April 25, 2024.
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