September 14, 2023
Top 10 Stock Saint Gobain Strong Buy 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 Saint Gobain Strong Buy

360 METRICS	September 14, 2023
VALUE
VALUE	62
GROWTH
GROWTH	64
SAFETY
SAFETY	42
SENTIMENT
SENTIMENT	86
360° VIEW
360° VIEW	81

ANALYSIS: With an Obermatt 360° View of 81 (better than 81% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Saint Gobain are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Saint Gobain. The consolidated Value Rank has an attractive rank of 62, which means that the share price of Saint Gobain is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 62% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 64, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 86. But the company’s financing is risky with a Safety rank of 42. This means 58% of comparable companies have a safer financing structure than Saint Gobain. ...read more

RECOMMENDATION: With a consolidated 360° View of 81, Saint Gobain is better positioned than 81% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 62), above-average growth (Growth Rank of 64), and positive market sentiment in the professional investor community (Sentiment Rank of 86), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 42), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Saint Gobain is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Saint Gobain very positive

SENTIMENT METRICS	September 14, 2023
ANALYST OPINION
ANALYST OPINION	72
OPINIONS CHANGE
OPINIONS CHANGE	54
PRO HOLDINGS
PRO HOLDINGS	58
MARKET PULSE
MARKET PULSE	89
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	86

ANALYSIS: With an Obermatt Sentiment Rank of 86 (better than 86% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Saint Gobain is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for Saint Gobain. Analyst Opinions are at a rank of 72 (better than 72% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive with a rank of 54, which means that stock research experts are changing their opinions for the better and recommending investing in the company. They are getting more optimistic about stock investments in Saint Gobain. The Professional Investors rank is 58, which means that currently, professional investors hold more stock in this company than in 58% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 89 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 89% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 86 (more positive than 86% compared with investment alternatives), Saint Gobain has a reputation among professional investors that is significantly higher than that of its competitors. Since all market sentiment indicators are positive, the professional community highly recommends investment in the company. Does this mean Saint Gobain stocks are a safe investment? Far from it. Even professionals make mistakes. Especially in stock investing, there is a tendency to follow the leaders. Since trees don't grow to the heavens, such positive sentiment may also be interpreted as a danger sign. A lot of optimism can often be a sign of troubles to come, albeit unforeseen by most. ...read more

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Value Strategy: Saint Gobain Stock Price Value better than average

VALUE METRICS	September 14, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	73
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	59
DIVIDEND YIELD
DIVIDEND YIELD	68
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	62

ANALYSIS: With an Obermatt Value Rank of 62 (better than 62% compared with alternatives), Saint Gobain shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Saint Gobain. Price-to-Sales is 50 which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value for Saint Gobain's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 73% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 59. Compared with other companies in the same industry, dividend yields of Saint Gobain are expected to be higher than for 68% of all competitors (a Dividend Yield rank of 68). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 62, is a buy recommendation based on Saint Gobain's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Saint Gobain based on its detailed value metrics.

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Growth Strategy: Saint Gobain Growth Momentum good

GROWTH METRICS	September 14, 2023
REVENUE GROWTH
REVENUE GROWTH	22
PROFIT GROWTH
PROFIT GROWTH	53
CAPITAL GROWTH
CAPITAL GROWTH	43
STOCK RETURNS
STOCK RETURNS	93
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	64

ANALYSIS: With an Obermatt Growth Rank of 64 (better than 64% compared with alternatives), Saint Gobain 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 Saint Gobain. Profit Growth has a rank of 53, which means that currently professionals expect the company to grow its profits more than 53% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 93 (above 93% of alternative investments). But Sales Growth has a below the median rank of 22, which means that, currently, professionals expect the company to grow less than 78% of its competitors, and Capital Growth also has a lower rank of 43. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 64, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Saint Gobain. ...read more

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Safety Strategy: Saint Gobain Debt Financing Safety below-average

SAFETY METRICS	September 14, 2023
LEVERAGE
LEVERAGE	51
REFINANCING
REFINANCING	38
LIQUIDITY
LIQUIDITY	60
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	42

ANALYSIS: With an Obermatt Safety Rank of 42 (better than 42% compared with alternatives), the company Saint Gobain has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Saint Gobain is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, 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 Saint Gobain. Leverage is at a rank of 51, meaning the company has a below-average debt-to-equity ratio. It has less debt than 51% of its competitors. Liquidity is also good at a rank of 60, meaning the company generates more profit to service its debt than 60% 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 38, 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 62% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 42 (worse than 58% compared with alternatives), Saint Gobain has a financing structure that is riskier 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 Saint Gobain. 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: Saint Gobain Above-Average Financial Performance

COMBINED PERFORMANCE	September 14, 2023
VALUE
VALUE	62
GROWTH
GROWTH	64
SAFETY
SAFETY	60
COMBINED
COMBINED	55

ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Saint Gobain (Building Products, France) shares have above-average financial characteristics compared with similar stocks. Shares of Saint Gobain are a good value (attractively priced) with a consolidated Value Rank of 62 (better than 62% of alternatives), show above-average growth (Growth Rank of 64) but are riskily financed (Safety Rank of 42), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Saint Gobain's financial characteristics. As the company Saint Gobain's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 62) and above-average growth (Obermatt Growth Rank of 64), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 42) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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