December 28, 2023
Top 10 Stock Yara International 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: Yara International – Top 10 Stock in OBX Index
Yara International is listed as a top 10 stock on December 28, 2023 in the market index OBX Index because of its high performance in at least one of the Obermatt investment strategies. While half the consolidated Obermatt Ranks are above-average, investor sentiment is negative and growth performance is below market average, both a sign for caution. Based on the Obermatt 360° View of 54 (high 54% performer), Obermatt assesses an overall buy recommendation for Yara International on December 28, 2023.
Snapshot: Obermatt Ranks
| Country | Norway |
| Industry | Fertilizers & Agricultural Chemicals |
| Index | Low Emissions, Dividends Europe, Energy Efficient, Diversity Europe, Human Rights, OBX Index |
| Size class | XX-Large |
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° View Yara International Buy
| 360 METRICS | December 28, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 89 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 35 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 57 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 20 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 54 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 54 (better than 54% compared with alternatives), overall professional sentiment and financial characteristics for the stock Yara International are above average. The 360° View is based on consolidating four consolidated indicators, with half the metrics below and half above average for Yara International. The consolidated Value Rank has an attractive rank of 89, which means that the share price of Yara International is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 89% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 57. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of 20. Professional investors are more confident in 80% other stocks. The consolidated Growth Rank also has a low rank of 35, which means that the company is below average in terms of growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. 65 of its competitors have better growth. ...read more
RECOMMENDATION: With a consolidated 360° View of 54, Yara International is better positioned than 54% of all alternative stock investment opportunities based on the Obermatt Method. The picture is mixed here. The stock seems to be a good value (Value Rank of 89), and the financing structure is on the safer side (Safety Rank of 57). However, sentiment in the professional investor community is below-average (Sentiment Rank of 20), as is the growth momentum for the company (Growth Rank of 35). Since the company is good value and the share price low, it should attract investors, yet professionals are skeptical. Even though the financing structure is not as important as Value, Growth, and Sentiment, investors should still be careful with this decision and conduct further research if they are serious about investing in this company. ...read more
Sentiment Strategy: Professional Market Sentiment for Yara International negative
ANALYSIS: With an Obermatt Sentiment Rank of 20 (better than 20% compared with alternatives), overall professional sentiment and engagement for the stock Yara International is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half the indicators below and half above average for Yara International. Analyst Opinions are at a rank of 17 (worse than 83% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. Worse, Analyst Opinions Change has a rank of 21, which means that stock research experts are getting even more pessimistic. In addition, the Professional Investors rank is 32, which means that professional investors hold less stock in this company than in 68% of alternative investment opportunities. Pros tend to invest in other companies. The only positive sentiment indicator for Yara International is Market Pulse, with a rank of 62, which means that the current professional news and professional social networks tend to be positive when discussing this company (more positive news than for 62% of competitors). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 20 (less encouraging than 80% compared with investment alternatives), Yara International has a reputation among professional investors that is far below that of its competitors. This is an ambiguous picture: analysts are negative and getting even more critical while the news in the market is positive. Who should investors believe? This is a difficult question in such a situation. Investors should proceed cautiously and verify not only the financial performance in the Obermatt Value, Growth and Safety Ranks but also independent news coverage of the company. ...read more
Value Strategy: Yara International Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 89 (better than 89% compared with alternatives) for 2023, Yara International shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Yara International. Price-to-Sales is 75 which means that the stock price compared with what market professionals expect for future sales is lower than for 75% of comparable companies, indicating a good value for Yara International's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 73% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 62. Compared with other companies in the same industry, dividend yields of Yara International are expected to be higher than for 94% of all competitors (a Dividend Yield rank of 94). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 89, is a buy recommendation based on Yara International's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Yara International based on its detailed value metrics.
Growth Strategy: Yara International Growth Momentum low
| GROWTH METRICS | December 28, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 42 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 10 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 45 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 61 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 35 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), Yara International 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 three out of four indicators below average for Yara International. Sales Growth has a below market rank of 42, which means that, currently, professionals expect the company to grow less than 58% of its competitors. The same is valid for Capital Growth, with a rank of 45, and Profit Growth, with a rank of 10. Currently, professionals expect the company to grow its profits less than 90% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 61, which means that the stock returns have recently been above 61% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Yara International, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. ...read more
Safety Strategy: Yara International Debt Financing Safety above-average
| SAFETY METRICS | December 28, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 53 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 58 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 56 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 57 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 57 (better than 57% compared with alternatives), the company Yara International 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 Yara International 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 all three are above average for Yara International. Leverage is at 53, meaning the company has a below-average debt-to-equity ratio. It has less debt than 53% of its competitors. Refinancing is at a rank of 58, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 58% of its competitors. Finally, Liquidity is also good at a rank of 56, which means that the company generates more profit to service its debt than 56% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 57 (better than 57% compared with alternatives), Yara International has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more
Combined financial peformance: Yara International Above-Average Financial Performance
| COMBINED PERFORMANCE | December 28, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 89 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 35 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 56 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 70 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Yara International (Fertilizers & Agricultural Chemicals, Norway) shares have above-average financial characteristics compared with similar stocks. Shares of Yara International are a good value (attractively priced) with a consolidated Value Rank of 89 (better than 89% of alternatives), are safely financed (Safety Rank of 57, which means low debt burdens), but show below-average growth (Growth Rank of 35). ...read more
RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Yara International's financial characteristics. As the company Yara International's key financial metrics exhibit good value (Obermatt Value Rank of 89) but low growth (Obermatt Growth Rank of 35) while being safely financed (Obermatt Safety Rank of 57), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 89% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.