September 14, 2023
Top 10 Stock Red Electricaoraci 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 Red Electricaoraci Sell

360 METRICS	September 14, 2023
VALUE
VALUE	48
GROWTH
GROWTH	11
SAFETY
SAFETY	72
SENTIMENT
SENTIMENT	24
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 Red Electricaoraci are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with three out of four metrics below average for Red Electricaoraci. The only rank that is above average is the consolidated Safety Rank at 72, which means that the company has a financing structure that is safer than those of 72% 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 48, which means that the share price of Red Electricaoraci 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 11, 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 24, which means that professional investors are more pessimistic about the stock than for 76% 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, Red Electricaoraci is worse than 76% of all alternative stock investment opportunities based on the Obermatt Method. This means that Red Electricaoraci 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 24. The negative market view on Red Electricaoraci 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 Red Electricaoraci negative

SENTIMENT METRICS	September 14, 2023
ANALYST OPINION
ANALYST OPINION	5
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	62
MARKET PULSE
MARKET PULSE	47
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	24

ANALYSIS: With an Obermatt Sentiment Rank of 24 (better than 24% compared with alternatives), overall professional sentiment and engagement for the stock Red Electricaoraci is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Red Electricaoraci. Analyst Opinions are at a rank of 5 (worse than 95% 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 are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Red Electricaoraci. More encouragingly, the Professional Investors rank is 62, which means that professional investors hold more stock in this company than in 62% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 47, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 53% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 24 (less encouraging than 76% compared with investment alternatives), Red Electricaoraci has a reputation among professional investors that is far below that of its competitors. The sentiment signals are mixed for Red Electricaoraci. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: Red Electricaoraci Stock Price Value below-average critical

VALUE METRICS	September 14, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	55
DIVIDEND YIELD
DIVIDEND YIELD	74
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	48

ANALYSIS: With an Obermatt Value Rank of 48 (worse than 52% compared with alternatives), Red Electricaoraci shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Red Electricaoraci. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 53 which means that the stock price compared with what market professionals expect for future profits is lower than for 53% of comparable companies, indicating a good value concerning Red Electricaoraci'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 55, and for Dividend Yield with a Dividend Yield Rank of 74. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 83% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 17). 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 48, is a hold recommendation based on Red Electricaoraci'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 Red Electricaoraci 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 Red Electricaoraci shares. ...read more

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Growth Strategy: Red Electricaoraci Growth Momentum negative

GROWTH METRICS	September 14, 2023
REVENUE GROWTH
REVENUE GROWTH	16
PROFIT GROWTH
PROFIT GROWTH	36
CAPITAL GROWTH
CAPITAL GROWTH	53
STOCK RETURNS
STOCK RETURNS	27
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	11

ANALYSIS: With an Obermatt Growth Rank of 11 (better than 11% compared with alternatives), Red Electricaoraci 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 Red Electricaoraci. Only Capital Growth has a good rank of 53, which means that currently professionals expect the company to grow its invested capital more than 36% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 16 which means that currently professionals expect the company to grow less than 84% of its competitors. Profit Growth with a rank of 36 and Stock Returns with a rank of 27 are also low (below 73% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 11, is a sell 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 Red Electricaoraci 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: Red Electricaoraci Debt Financing Safety above-average

SAFETY METRICS	September 14, 2023
LEVERAGE
LEVERAGE	56
REFINANCING
REFINANCING	49
LIQUIDITY
LIQUIDITY	73
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	72

ANALYSIS: With an Obermatt Safety Rank of 72 (better than 72% compared with alternatives), the company Red Electricaoraci 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 Red Electricaoraci 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 Red Electricaoraci. Leverage is at a rank of 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors. Liquidity is also good at a rank of 73, meaning the company generates more profit to service its debt than 73% 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 49, 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 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 72 (better than 72% compared with alternatives), Red Electricaoraci 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 Red Electricaoraci. 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: Red Electricaoraci Below-Average Financial Performance

COMBINED PERFORMANCE	September 14, 2023
VALUE
VALUE	48
GROWTH
GROWTH	11
SAFETY
SAFETY	73
COMBINED
COMBINED	32

ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Red Electricaoraci (Electric Utilities, Spain) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Red Electricaoraci are low in value (priced high) with a consolidated Value Rank of 48 (worse than 52% of alternatives) and show below-average growth (Growth Rank of 11) but are safely financed (Safety Rank of 72), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Red Electricaoraci's financial characteristics. As the company Red Electricaoraci's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 48) and low growth (Obermatt Growth Rank of 11), 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 72) 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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