May 11, 2023
Top 10 Stock Shih Wei Navigation Buy Recommendation
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.
Snapshot: Shih Wei Navigation – Top 10 Stock in Wood & Timber Industry
Shih Wei Navigation is listed as a top 10 stock on May 11, 2023 in the market index Timber Industry because of its high performance in at least one of the Obermatt investment strategies. While half of the consolidated Obermatt Ranks exhibit above-average performance and professional market sentiment is positive, it may be a solid investment proposition, especially if it can be expected that growth recovers soon. Based on the Obermatt 360° Rank of 59 (high 59% performer), Obermatt assesses an overall buy recommendation for Shih Wei Navigation on May 11, 2023.
Snapshot: Obermatt Ranks
| Country | Taiwan |
| Industry | Marine |
| Index | Timber Industry, FTSE Taiwan |
| Size class | Small |
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
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° Assessment Shih Wei Navigation Buy
| 360 METRICS | May 11, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 77 |
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| GROWTH | ||||||||
| GROWTH | 31 |
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| SAFETY | ||||||||
| SAFETY | 46 |
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| SENTIMENT | ||||||||
| SENTIMENT | 93 |
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| 360° VIEW | ||||||||
| 360° VIEW | 59 |
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ANALYSIS: With an Obermatt 360° Rank of 59 (better than 59% compared with alternatives), overall professional sentiment and engagement for the stock Shih Wei Navigation are above average. The 360° Rank is based on consolidating four consolidated indicators, with half the metrics below and half above average for Shih Wei Navigation. The consolidated Value Rank has an attractive rank of 77, which means that the share price of Shih Wei Navigation is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 77% of alternative stocks in the same industry. The consolidated Sentiment Rank has a good rank of 93, which means that professional investors are more optimistic about the stock than for 93% of alternative investment opportunities. But the consolidated Growth Rank has a low rank of 31, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. The consolidated Safety Rank has a riskier rank of 46, meaning the company has a riskier financing structure than 54 comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more
RECOMMENDATION: With a 360° Rank of 59, Shih Wei Navigation is better than 59% of all alternative stock investment opportunities based on the Obermatt Method. Half of the consolidated Obermatt Ranks exhibit above-average performance, but the other half are below market levels. The company enjoys a good value (Value Rank of 77) and positive market sentiment in the professional investor community (Sentiment Rank of 93), but growth expectations are below-average (Growth Rank of 31) and the financing structure is on the risky side(Safety Rank of 46). This combination is rather dangerous, because high debt levels (low safety) require growth to finance the debt burden. The current low growth level may be temporary, because professionals are actually optimistic (high sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. Companies with less growth typically have a lower price than fast-growing competitors. Even though professional investor sentiment is strong, we recommend further evaluating whether the future of Shih Wei Navigation is as challenging as the stock's low price suggests. Since the professional community is optimistic, the stock might just be going through a more challenging phase now, indicating that timing might be good now. ...read more
Sentiment Strategy: Professional Market Sentiment for Shih Wei Navigation very positive
ANALYSIS: With an Obermatt Sentiment Rank of 93 (better than 93% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Shih Wei Navigation is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Shih Wei Navigation. Analyst Opinions are at a rank of 42 (worse than 58% 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 indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Shih Wei Navigation. Even better, the Professional Investors rank is 97, meaning that professional investors hold more stock in this company than in 97% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 100, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 100% of competitors). ...read more
RECOMMENDATION: With an Obermatt Sentiment Rank of 93 (more positive than 93% compared with investment alternatives), Shih Wei Navigation has a reputation among professional investors that is significantly higher than that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more
Value Strategy: Shih Wei Navigation Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 77 (better than 77% compared with alternatives) for 2023, Shih Wei Navigation 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 Shih Wei Navigation. Price-to-Profit (also referred to as price to earnings, P/E ratio) has a value of 83 which means that the stock price compared with what market professionals expect for future profits is lower than 83% of comparable companies, indicating a good value concerning Shih Wei Navigation's profit levels. The same is valid for expected Price-to-Book Capital (also referred to as market-to-book ratio) with an Obermatt Price-to-Capital Rank of 64, and it's also true for Dividend Yield with an Obermatt Dividend Yield Rank of 81. But, compared with other companies in the same industry, the stock price is higher than average if compared with expected revenues; only 68% of all competitors have an even higher stock price compared with sales revenues (an Obermatt Price-to-Sales Rank of 32). 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 77, is a strong buy recommendation based on Shih Wei Navigation'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 Shih Wei Navigation 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 Shih Wei Navigation shares. ...read more
Growth Strategy: Shih Wei Navigation Growth Momentum low
ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), Shih Wei Navigation 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 Shih Wei Navigation. Sales Growth has a rank of 65, which means that, currently, professionals expect the company to grow more than 65% of its competitors. Profit Growth with a rank of 53 is also above average. But Capital Growth has only a rank of 43, and Stock Returns with 7 are also below-average. Stock returns for Shih Wei Navigation have recently been below 93% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a HOLD 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 Shih Wei Navigation. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. ...read more
Safety Strategy: Shih Wei Navigation Debt Financing Safety below-average
| SAFETY METRICS | May 11, 2023 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 31 |
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| REFINANCING | ||||||||
| REFINANCING | 46 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 55 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 46 |
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ANALYSIS: With an Obermatt Safety Rank of 46 (better than 46% compared with alternatives), the company Shih Wei Navigation 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 Shih Wei Navigation 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 just one indicator above average for Shih Wei Navigation. Liquidity is at 55, meaning the company generates more profit to service its debt than 55% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 46, 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 54% of its competitors. Leverage is also high at a rank of 31, which means that the company has an above-average debt-to-equity ratio. It has more debt than 69% of its competitors. ...read more
RECOMMENDATION: With an Obermatt Safety Rank of 46 (worse than 54% compared with alternatives), Shih Wei Navigation has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usuallyl indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more
Combined financial peformance: Shih Wei Navigation Above-Average Financial Performance
| COMBINED PERFORMANCE | May 11, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 77 |
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| GROWTH | ||||||||
| GROWTH | 31 |
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| SAFETY | ||||||||
| SAFETY | 55 |
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| COMBINED | ||||||||
| COMBINED | 56 |
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ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), Shih Wei Navigation (Marine, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of Shih Wei Navigation are a good value (attractively priced) with a consolidated Obermatt Value Rank of 77 (better than 77% of alternatives) but show below-average growth (Growth Rank of 31), and are riskily financed (Safety Rank of 46), which means above-average debt burdens. ...read more
RECOMMENDATION: An Obermatt Combined Rank of 56, is a buy recommendation based on Shih Wei Navigation's financial characteristics. As the company Shih Wei Navigation's key financial metrics exhibit good value (Obermatt Value Rank of 77) but low growth (Obermatt Growth Rank of 31) and risky financing practices (Obermatt Safety Rank of 46), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 77% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more
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