Fact based stock research
Suncorp (ASX:SUN)
AU000000SUN6
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.
Suncorp stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Suncorp (Property & Casualty Insurance, Australia) shares have much better financial characteristics than comparable stocks. Shares of Suncorp are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives), and are riskily financed (Safety Rank of 36, which means above-average debt burdens) but show above-average growth (Growth Rank of 82). ...read more
RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Suncorp's financial characteristics. As the company Suncorp shows low value with an Obermatt Value Rank of 37 (63% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 82% of comparable companies (Obermatt Growth Rank is 82). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 36 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Suncorp, even a low-value company (in terms of its key financial indicators) can be a good investment. 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
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360° ViewnewThis stock has achievements: Top 10 Stock.
18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Suncorp
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 54 |
|
51 |
|
45 |
|
37 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
33 |
|
63 |
|
82 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
36 |
|
36 |
|
36 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
90 |
|
59 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
73 |
|
92 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Suncorp (Property & Casualty Insurance, Australia) shares have much better financial characteristics than comparable stocks. Shares of Suncorp are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives), and are riskily financed (Safety Rank of 36, which means above-average debt burdens) but show above-average growth (Growth Rank of 82). ...read more
RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Suncorp's financial characteristics. As the company Suncorp shows low value with an Obermatt Value Rank of 37 (63% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 82% of comparable companies (Obermatt Growth Rank is 82). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 36 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Suncorp, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 54 |
|
51 |
|
45 |
|
37 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
33 |
|
63 |
|
82 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
36 |
|
36 |
|
36 |
|
| COMBINED | ||||||||
| COMBINED | 12 |
|
82 |
|
82 |
|
82 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), Suncorp shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Suncorp. Price-to-Sales (P/S) is 70, which means that the stock price compared with what market professionals expect for future sales is lower than for 70% of comparable companies, indicating a good value concerning Suncorp's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 55, which means that dividends are expected to be higher than for 55% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 69% of alternatives (only 31% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 74% 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 37, is a hold recommendation based on Suncorp's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. 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 especially important 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) | 44 |
|
69 |
|
71 |
|
70 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 42 |
|
27 |
|
36 |
|
26 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 63 |
|
44 |
|
39 |
|
31 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 80 |
|
84 |
|
60 |
|
55 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 54 |
|
51 |
|
45 |
|
37 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 82 (better than 82% compared with alternatives) for 2022, Suncorp shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Suncorp. Sales Growth has a rank of 80 which means that currently, professionals expect the company to grow more than 80% of its competitors. Both Profit Growth, with a rank of 59, and Stock Returns, with a rank of 68, are also above average. But Capital Growth only has a rank of 49, which means that, currently, professionals expect the company to grow its invested capital less than 51% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 82, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. 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. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 18 |
|
56 |
|
70 |
|
80 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 19 |
|
6 |
|
45 |
|
59 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
59 |
|
47 |
|
49 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 44 |
|
49 |
|
65 |
|
68 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 24 |
|
33 |
|
63 |
|
82 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 36 (better than 36% compared with alternatives), the company Suncorp 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 Suncorp 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 Suncorp and the other two below average. Refinancing is at 64, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 64% of its competitors. But Leverage is high with a rank of 4, meaning the company has an above-average debt-to-equity ratio. It has more debt than 96% of its competitors. Liquidity is also on the riskier side with a rank of 41, meaning the company generates less profit to service its debt than 59% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 36 (worse than 64% compared with alternatives), Suncorp has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Suncorp are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Suncorp and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 4 |
|
20 |
|
4 |
|
4 |
|
| REFINANCING | ||||||||
| REFINANCING | 1 |
|
64 |
|
64 |
|
64 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 21 |
|
44 |
|
40 |
|
41 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 1 |
|
36 |
|
36 |
|
36 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
58 |
|
95 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
82 |
|
40 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
78 |
|
51 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
56 |
|
54 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
90 |
|
59 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Suncorp from April 18, 2024.
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