December 14, 2023
Top 10 Stock Siemens Gamesa Renewable Energy 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 Siemens Gamesa Renewable Energy Sell

360 METRICS	December 14, 2023
VALUE
VALUE	39
GROWTH
GROWTH	23
SAFETY
SAFETY	11
SENTIMENT
SENTIMENT	1
360° VIEW
360° VIEW	16

ANALYSIS: With an Obermatt 360° View of 16 (better than 16% compared with alternatives), overall professional sentiment and financial characteristics for the stock Siemens Gamesa Renewable Energy are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with all four indicators below average for Siemens Gamesa Renewable Energy. The consolidated Value Rank has a low rank of 39 which means that the share price of Siemens Gamesa Renewable Energy is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 61% of alternative stocks in the same industry. The consolidated Growth Rank also has a low rank of 23, which means 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. This means that growth is lower than for 23% of competitors in the same industry. The consolidated Safety Rank has a riskier rank of 11, which means that the company has a riskier financing structure than 89% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a low rank of 1, which means that professional investors are more pessimistic about the stock than for 99% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 16, Siemens Gamesa Renewable Energy is worse than 84% of all alternative stock investment opportunities based on the Obermatt Method. This means that Siemens Gamesa Renewable Energy shares are on the riskier side for investors. As all consolidated Obermatt Ranks are below-average, this is a risky stock investment proposition, especially since professional investor sentiment, the consolidated Obermatt Sentiment Rank, is also low at 1. The negative market view on Siemens Gamesa Renewable Energy may stem from the high stock price (low value), the low level of growth, or the risky financing structures. That's several problems with no good news anywhere. Based on the current information, we don’t see any compelling arguments 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 confirmed by investor behavior today. While Siemens Gamesa Renewable Energy may have a bright future, it is reflected in neither the financial indicators nor the market sentiment. ...read more

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Sentiment Strategy: Professional Market Sentiment for Siemens Gamesa Renewable Energy negative

SENTIMENT METRICS	December 14, 2023
ANALYST OPINION
ANALYST OPINION	2
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	20
MARKET PULSE
MARKET PULSE	1
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	1

ANALYSIS: With an Obermatt Sentiment Rank of 1 (better than 1% compared with alternatives), overall professional sentiment and engagement for the stock Siemens Gamesa Renewable Energy is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for Siemens Gamesa Renewable Energy. Analyst Opinions are at a rank of 2 (worse than 98% 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 have found something to make them more positive about investing in the company. In other words, they are getting more optimistic of stock investments in Siemens Gamesa Renewable Energy. But the Professional Investors rank is low at 20, which means that professional investors hold less stock in this company than in 80% of alternative investment opportunities. Pros tend to invest in other companies. Market Pulse is also low at a rank of 1, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 99% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 1 (less encouraging than 99% compared with investment alternatives), Siemens Gamesa Renewable Energy has a reputation among professional investors that is far below that of its competitors. These are quite a few negative sentiment signals. One may want to trust the analysts that are changing their opinions. They may be early indications of better times, especially if the company is a smaller one. But If they are an extra large company, they should have more professional stockholders than are currently present. ...read more

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Value Strategy: Siemens Gamesa Renewable Energy Stock Price Value below-average critical

VALUE METRICS	December 14, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	55
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	6
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	36
DIVIDEND YIELD
DIVIDEND YIELD	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39

ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), Siemens Gamesa Renewable Energy shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Siemens Gamesa Renewable Energy. Price-to-Sales (P/S) is 55, which means that the stock price compared with what market professionals expect for future sales is lower than 55% of comparable companies, indicating a good value concerning to Siemens Gamesa Renewable Energy's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 64% of alternatives (only 36% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 94% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a hold recommendation based on Siemens Gamesa Renewable Energy's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Siemens Gamesa Renewable Energy could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Siemens Gamesa Renewable Energy looks like an expensive investment today. ...read more

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Growth Strategy: Siemens Gamesa Renewable Energy Growth Momentum negative

GROWTH METRICS	December 14, 2023
REVENUE GROWTH
REVENUE GROWTH	11
PROFIT GROWTH
PROFIT GROWTH	69
CAPITAL GROWTH
CAPITAL GROWTH	27
STOCK RETURNS
STOCK RETURNS	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	23

ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), Siemens Gamesa Renewable Energy 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 half of the indicators below and half above average for Siemens Gamesa Renewable Energy. Profit Growth has a rank of 69, which means that currently professionals expect the company to grow its profits more than 69% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 61 (above 61% of alternative investments). But Sales Growth has a below the median rank of 11, which means that, currently, professionals expect the company to grow less than 89% of its competitors, and Capital Growth also has a lower rank of 27. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell 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 Siemens Gamesa Renewable Energy. ...read more

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Safety Strategy: Siemens Gamesa Renewable Energy Debt Financing Safety risky

SAFETY METRICS	December 14, 2023
LEVERAGE
LEVERAGE	32
REFINANCING
REFINANCING	7
LIQUIDITY
LIQUIDITY	14
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	11

ANALYSIS: With an Obermatt Safety Rank of 11 (better than 11% compared with alternatives), the company Siemens Gamesa Renewable Energy 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 Siemens Gamesa Renewable Energy 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 Siemens Gamesa Renewable Energy. Liquidity is at 14, meaning that the company generates less profit to service its debt than 86% 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 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Finally, Refinancing is at a rank of 7 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 93% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 11 (worse than 89% compared with alternatives), Siemens Gamesa Renewable Energy 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.

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Combined financial peformance: Siemens Gamesa Renewable Energy Lowest Financial Performance

COMBINED PERFORMANCE	December 14, 2023
VALUE
VALUE	39
GROWTH
GROWTH	23
SAFETY
SAFETY	14
COMBINED
COMBINED	13

ANALYSIS: With an Obermatt Combined Rank of 13 (worse than 87% compared with investment alternatives), Siemens Gamesa Renewable Energy (Heavy Electrical Equipment, Spain) shares have lower financial characteristics compared with similar stocks. Shares of Siemens Gamesa Renewable Energy are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives), show below-average growth (Growth Rank of 23), and are riskily financed (Safety Rank of 11), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 13, is a sell recommendation based on Siemens Gamesa Renewable Energy's financial characteristics. As the company Siemens Gamesa Renewable Energy's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 39), low growth (Obermatt Growth Rank of 23), and risky financing practices (Obermatt Safety 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. 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. ...read more

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