September 28, 2023
Top 10 Stock Zurich Insurance Group Hold Recommendation

Latest Research

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 Zurich Insurance Group Hold

360 METRICS	September 28, 2023
VALUE
VALUE	15
GROWTH
GROWTH	21
SAFETY
SAFETY	41
SENTIMENT
SENTIMENT	34
360° VIEW
360° VIEW	29

ANALYSIS: With an Obermatt 360° View of 29 (better than 29% compared with alternatives), overall professional sentiment and financial characteristics for the stock Zurich Insurance Group are below the industry average. The 360° View is based on consolidating four consolidated indicators, with all four indicators below average for Zurich Insurance Group. The consolidated Value Rank has a low rank of 15 which means that the share price of Zurich Insurance Group 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 85% of alternative stocks in the same industry. The consolidated Growth Rank also has a low rank of 21, 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 21% of competitors in the same industry. The consolidated Safety Rank has a riskier rank of 41, which means that the company has a riskier financing structure than 59% 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 34, which means that professional investors are more pessimistic about the stock than for 66% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 29, Zurich Insurance Group is worse than 71% of all alternative stock investment opportunities based on the Obermatt Method. 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 34. The negative market view on Zurich Insurance Group 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 Zurich Insurance Group may have a bright future, it is reflected in neither the financial indicators nor the market sentiment. ...read more

---

Sentiment Strategy: Professional Market Sentiment for Zurich Insurance Group only reserved

SENTIMENT METRICS	September 28, 2023
ANALYST OPINION
ANALYST OPINION	9
OPINIONS CHANGE
OPINIONS CHANGE	11
PRO HOLDINGS
PRO HOLDINGS	79
MARKET PULSE
MARKET PULSE	33
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	34

ANALYSIS: With an Obermatt Sentiment Rank of 34 (better than 34% compared with alternatives), overall professional sentiment and engagement for the stock Zurich Insurance Group is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half the indicators below and the other half above average for Zurich Insurance Group. Analyst Opinions are at a rank of 9 (worse than 91% 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 11, which means that stock research experts are getting more pessimistic. It doesn't end with the analysts. Market Pulse is also low with a rank of 33, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 67% of competitors). On the upside, the Professional Investors rank is 79, which means that professional investors hold more stock in this company than in 79% of alternative investment opportunities. Pros tend to favor investing in this company. This could be due to a large company size, which could contribute to the higher share of professional investors in the company. If this is not the case, the low sentiment ranks are more challenging to explain. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 34 (less encouraging than 66% compared with investment alternatives), Zurich Insurance Group has a reputation among professional investors that is below that of its competitors. Should the company be on the smaller side, the presence of professional investors could be reassuring. That would make Zurich Insurance Group stock something like a hidden gem. Investors should make sure with further research that this is true, because all other sentiment indicators are negative which is a sign for caution. ...read more

---

Value Strategy: Zurich Insurance Group Stock Price Value low

VALUE METRICS	September 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	26
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	25
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	9
DIVIDEND YIELD
DIVIDEND YIELD	54
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	15

ANALYSIS: With an Obermatt Value Rank of 15 (worse than 85% compared with alternatives), Zurich Insurance Group shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Zurich Insurance Group. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 54% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 26 which means that the stock price compared with what market professionals expect for future profits is higher than 74% of comparable companies, indicating a low value concerning Zurich Insurance Group's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 25 which means that the stock price compared with what market professionals expect for future profit levels is higher than 75% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 9 is also low. Compared with invested capital, the stock price is higher than for 91% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 15, is a sell recommendation based on Zurich Insurance Group's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Zurich Insurance Group? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Zurich Insurance Group only if they reasonably expect the low current profit levels to be transitory. ...read more

---

Growth Strategy: Zurich Insurance Group Growth Momentum negative

GROWTH METRICS	September 28, 2023
REVENUE GROWTH
REVENUE GROWTH	11
PROFIT GROWTH
PROFIT GROWTH	59
CAPITAL GROWTH
CAPITAL GROWTH	41
STOCK RETURNS
STOCK RETURNS	39
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	21

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), Zurich Insurance Group 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 three out of four metrics below average for Zurich Insurance Group. While Profit Growth has a good rank of 59, as professionals currently expect the company to grow its profits more than 59% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 11, which means that currently professionals expect the company to grow less than 89% of its competitors, while Capital Growth has a rank of 41 and Stock Returns have been below market median, with a rank of 39 (61% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. ...read more

---

Safety Strategy: Zurich Insurance Group Debt Financing Safety below-average

SAFETY METRICS	September 28, 2023
LEVERAGE
LEVERAGE	52
REFINANCING
REFINANCING	66
LIQUIDITY
LIQUIDITY	81
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	41

ANALYSIS: With an Obermatt Safety Rank of 41 (better than 41% compared with alternatives), the company Zurich Insurance Group 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 Zurich Insurance Group 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, where all three are above average for Zurich Insurance Group. Leverage is at 52, meaning the company has a below-average debt-to-equity ratio. It has less debt than 52% of its competitors. Refinancing is at a rank of 66, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 66% of its competitors. Finally, Liquidity is also good at a rank of 81, which means that the company generates more profit to service its debt than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 41 (worse than 59% compared with alternatives), Zurich Insurance Group has a financing structure that is riskier 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: Zurich Insurance Group Above-Average Financial Performance

COMBINED PERFORMANCE	September 28, 2023
VALUE
VALUE	15
GROWTH
GROWTH	21
SAFETY
SAFETY	81
COMBINED
COMBINED	65

ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), Zurich Insurance Group (Multi-line Insurance, Switzerland) shares have above-average financial characteristics compared with similar stocks. Shares of Zurich Insurance Group are low in value (priced high) with a consolidated Value Rank of 15 (worse than 85% of alternatives), show below-average growth (Growth Rank of 21), and are riskily financed (Safety Rank of 41), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on Zurich Insurance Group's financial characteristics. As the company Zurich Insurance Group's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 15), low growth (Obermatt Growth Rank of 21), and risky financing practices (Obermatt Safety Rank of 41), 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

Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.