September 21, 2023
Top 10 Stock Webjet 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 Webjet Strong Buy

360 METRICS	September 21, 2023
VALUE
VALUE	49
GROWTH
GROWTH	85
SAFETY
SAFETY	62
SENTIMENT
SENTIMENT	76
360° VIEW
360° VIEW	98

ANALYSIS: With an Obermatt 360° View of 98 (better than 98% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Webjet are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Webjet. The consolidated Growth Rank has a good rank of 85, 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. This means that growth is higher than for 85% of competitors in the same industry. The consolidated Safety Rank at 62 means that the company has a financing structure that is safer than 62% 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 good rank of 76, which means that professional investors are more optimistic about the stock than for 76% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 49, meaning that the share price of Webjet is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 51% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 98, Webjet is better positioned than 98% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 85), a safe financing structure (Safety Rank of 62), and positive professional market sentiment (Sentiment Rank of 76), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Webjet compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (85% better than peers). The value rank could be the reverse reflection of that (15%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Webjet very positive

SENTIMENT METRICS	September 21, 2023
ANALYST OPINION
ANALYST OPINION	48
OPINIONS CHANGE
OPINIONS CHANGE	63
PRO HOLDINGS
PRO HOLDINGS	83
MARKET PULSE
MARKET PULSE	65
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	76

ANALYSIS: With an Obermatt Sentiment Rank of 76 (better than 76% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Webjet is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Webjet. Analyst Opinions are at a rank of 48 (worse than 52% 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 63, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Webjet. Even better, the Professional Investors rank is 83, meaning that professional investors hold more stock in this company than in 83% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 65, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 65% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 76 (more positive than 76% compared with investment alternatives), Webjet 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

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Value Strategy: Webjet Stock Price Value below-average critical

VALUE METRICS	September 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	45
DIVIDEND YIELD
DIVIDEND YIELD	49
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	49

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), Webjet shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Webjet. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 58, which means that the stock price compared with what market professionals expect for future profits is lower than for 58% of comparable companies, indicating a good value concerning Webjet's profit levels. But Price-to-Sales is 11 which means that the stock price compared with what market professionals expect for future profits is higher than for 89% of comparable companies, indicating a low value concerning Webjet's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 45 and for dividend yield, which is lower than for 51% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on Webjet's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Webjet is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. ...read more

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Growth Strategy: Webjet Growth Momentum high

GROWTH METRICS	September 21, 2023
REVENUE GROWTH
REVENUE GROWTH	92
PROFIT GROWTH
PROFIT GROWTH	68
CAPITAL GROWTH
CAPITAL GROWTH	48
STOCK RETURNS
STOCK RETURNS	83
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	85

ANALYSIS: With an Obermatt Growth Rank of 85 (better than 85% compared with alternatives) for 2023, Webjet 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 Webjet. Sales Growth has a rank of 92 which means that currently, professionals expect the company to grow more than 92% of its competitors. Both Profit Growth, with a rank of 68, and Stock Returns, with a rank of 83, are also above average. But Capital Growth only has a rank of 48, which means that, currently, professionals expect the company to grow its invested capital less than 52% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 85, 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. ...read more

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Safety Strategy: Webjet Debt Financing Safety above-average

SAFETY METRICS	September 21, 2023
LEVERAGE
LEVERAGE	67
REFINANCING
REFINANCING	60
LIQUIDITY
LIQUIDITY	45
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	62

ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% compared with alternatives), the company Webjet has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Webjet is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Webjet.Leverage is at 67, meaning the company has a below-average debt-to-equity ratio. It has less debt than 67% of its competitors.Refinancing is at a rank of 60, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 60% of its competitors. Liquidity is at 45, meaning that the company generates less profit to service its debt than 55% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 62 (better than 62% compared with alternatives), Webjet has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. ...read more

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Combined financial peformance: Webjet Top Financial Performance

COMBINED PERFORMANCE	September 21, 2023
VALUE
VALUE	49
GROWTH
GROWTH	85
SAFETY
SAFETY	45
COMBINED
COMBINED	81

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), Webjet (Hotels, Resorts & Cruise Lines, Australia) shares have much better financial characteristics than comparable stocks. Shares of Webjet are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 85) and are safely financed (Safety Rank of 62, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on Webjet's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Webjet exhibits low value (Obermatt Value Rank of 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 85). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 62) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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