Fact based stock research
Scatec Solar ASA (OB:SSO)

NO0010715139

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.

Scatec Solar ASA stock research in summary

scatecsolar.com

ANALYSIS: With an Obermatt Combined Rank of 4 (worse than 96% compared with investment alternatives), Scatec Solar ASA (Renewable Electricity, Norway) shares have lower financial characteristics compared with similar stocks. Shares of Scatec Solar ASA are low in value (priced high) with a consolidated Value Rank of 36 (worse than 64% of alternatives), show below-average growth (Growth Rank of 43), and are riskily financed (Safety Rank of 1), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 4, is a sell recommendation based on Scatec Solar ASA's financial characteristics. As the company Scatec Solar ASA's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 36), low growth (Obermatt Growth Rank of 43), and risky financing practices (Obermatt Safety Rank of 1), 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. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. 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


360° View^new
Sentiment Rank^new
Value Rank	36
Growth Rank	43
Safety Rank	1
Combined Rank	4

Country	Norway
Industry	Renewable Electricity
Index	SDG 17, SDG 4, SDG 7, SDG 8, OBX Index
Size class	Medium

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.

Further information

Multiple opinions. One number.

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.

Why popular stocks have low ratings

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: Scatec Solar ASA

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	1	23	22	36
GROWTH
GROWTH	8	81	61	43
SAFETY
SAFETY	36	50	1	1
SENTIMENT
SENTIMENT	n/a	5	46	^new
360° VIEW
360° VIEW	n/a	27	16	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Scatec Solar ASA is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	1	23	22	36
GROWTH
GROWTH	8	81	61	43
SAFETY
SAFETY	36	50	1	1
COMBINED
COMBINED	11	54	4	4

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Scatec Solar ASA the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 36 (worse than 64% compared with alternatives), Scatec Solar ASA shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Scatec Solar ASA. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 69, which means that the stock price is lower compared with invested capital than for 69% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 38 which means the stock price compared with what market professionals expect for future profits is higher than 62% of comparable companies, indicating a low value concerning Scatec Solar ASA's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 69 and for the dividend yields rank which is lower than for 72% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 36, is a hold recommendation based on Scatec Solar ASA's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Scatec Solar ASA, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	5	18	26	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	14	7	33
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	25	39	64	69
DIVIDEND YIELD
DIVIDEND YIELD	19	41	29	28
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	1	23	22	36

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Scatec Solar ASA; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Scatec Solar ASA shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Scatec Solar ASA. Sales Growth has a rank of 94 which means that currently professionals expect the company to grow more than 94% of its competitors. Stock Returns are also above average with a rank of 58. But Capital Growth has only a rank of 7, which means that currently professionals expect the company to grow its invested capital less than 93% of its competitors. Profit Growth is also low, with a rank of only 34, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 58% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. 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 mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	50	70	88	94
PROFIT GROWTH
PROFIT GROWTH	n/a	87	85	34
CAPITAL GROWTH
CAPITAL GROWTH	n/a	100	6	7
STOCK RETURNS
STOCK RETURNS	6	1	41	58
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	8	81	61	43

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Scatec Solar ASA.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 1 (better than 1% compared with alternatives), the company Scatec Solar ASA has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Scatec Solar ASA 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 all three metrics below average for Scatec Solar ASA. Liquidity is at 12, meaning that the company generates less profit to service its debt than 88% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 9, meaning the company has an above-average debt-to-equity ratio. It has more debt than 91% of its competitors. Finally, Refinancing is at a rank of 27 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 73% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 1 (worse than 99% compared with alternatives), Scatec Solar ASA has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Scatec Solar ASA because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	45	52	12	9
REFINANCING
REFINANCING	62	83	15	27
LIQUIDITY
LIQUIDITY	13	12	12	12
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	36	50	1	1

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Scatec Solar ASA and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	5	73	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	49	54	^new
MARKET PULSE
MARKET PULSE	n/a	28	29	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	5	46	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Scatec Solar ASA.
Upgrade to a Premium Account to access the latest ranks.