November 28, 2024
Top 10 Stock AB Sagax 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 AB Sagax Strong Buy

360 METRICS	November 28, 2024
VALUE
VALUE	4
GROWTH
GROWTH	67
SAFETY
SAFETY	78
SENTIMENT
SENTIMENT	98
360° VIEW
360° VIEW	83

ANALYSIS: With an Obermatt 360° View of 83 (better than 83% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock AB Sagax are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for AB Sagax. The consolidated Growth Rank has a good rank of 67, 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 67% of competitors in the same industry. The consolidated Safety Rank at 78 means that the company has a financing structure that is safer than 78% 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 98, which means that professional investors are more optimistic about the stock than for 98% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 4, meaning that the share price of AB Sagax is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 96% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 83, AB Sagax is better positioned than 83% 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 67), a safe financing structure (Safety Rank of 78), and positive professional market sentiment (Sentiment Rank of 98), 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 AB Sagax compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (67% better than peers). The value rank could be the reverse reflection of that (33%). 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 AB Sagax very positive

SENTIMENT METRICS	November 28, 2024
ANALYST OPINION
ANALYST OPINION	49
OPINIONS CHANGE
OPINIONS CHANGE	85
PRO HOLDINGS
PRO HOLDINGS	85
MARKET PULSE
MARKET PULSE	93
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	98

ANALYSIS: With an Obermatt Sentiment Rank of 98 (better than 98% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock AB Sagax is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for AB Sagax. Analyst Opinions are at a rank of 49 (worse than 51% 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 85, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in AB Sagax. Even better, the Professional Investors rank is 85, meaning that professional investors hold more stock in this company than in 85% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 93, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 93% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 98 (more positive than 98% compared with investment alternatives), AB Sagax 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: AB Sagax Stock Price Value low

VALUE METRICS	November 28, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	1
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	40
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	3
DIVIDEND YIELD
DIVIDEND YIELD	22
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	4

ANALYSIS: With an Obermatt Value Rank of 4 (worse than 96% compared with alternatives), AB Sagax shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for AB Sagax. Price-to-Sales is 1 which means that the stock price compared with what market professionals expect for future profits is higher than 99% of comparable companies, indicating a low value concerning AB Sagax's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 3, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of AB Sagax. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 40 and Dividend Yield, which is lower than 78% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 4, is a sell recommendation based on AB Sagax's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for AB Sagax? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as AB Sagax? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. AB Sagax may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more

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Growth Strategy: AB Sagax Growth Momentum good

GROWTH METRICS	November 28, 2024
REVENUE GROWTH
REVENUE GROWTH	78
PROFIT GROWTH
PROFIT GROWTH	81
CAPITAL GROWTH
CAPITAL GROWTH	33
STOCK RETURNS
STOCK RETURNS	36
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), AB Sagax shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for AB Sagax. Sales Growth has a rank of 78, which means that, currently, professionals expect the company to grow more than 78% of its competitors. Profit Growth with a rank of 81 is also above average. But Capital Growth has only a rank of 33, and Stock Returns with 36 are also below-average. Stock returns for AB Sagax have recently been below 64% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for AB Sagax. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. ...read more

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Safety Strategy: AB Sagax Debt Financing Safety very solid

SAFETY METRICS	November 28, 2024
LEVERAGE
LEVERAGE	71
REFINANCING
REFINANCING	57
LIQUIDITY
LIQUIDITY	80
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	78

ANALYSIS: With an Obermatt Safety Rank of 78 (better than 78% compared with alternatives) for 2024, the company AB Sagax has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of AB Sagax 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 AB Sagax. Leverage is at 71, meaning the company has a below-average debt-to-equity ratio. It has less debt than 71% of its competitors. Refinancing is at a rank of 57, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 57% of its competitors. Finally, Liquidity is also good at a rank of 80, which means that the company generates more profit to service its debt than 80% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 78 (better than 78% compared with alternatives), AB Sagax has a financing structure that is significantly 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

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Combined financial peformance: AB Sagax Above-Average Financial Performance

COMBINED PERFORMANCE	November 28, 2024
VALUE
VALUE	4
GROWTH
GROWTH	67
SAFETY
SAFETY	80
COMBINED
COMBINED	54

ANALYSIS: With an Obermatt Combined Rank of 54 (better than 54% compared with investment alternatives), AB Sagax (Real Estate: Operating Services, Sweden) shares have above-average financial characteristics compared with similar stocks. Shares of AB Sagax are low in value (priced high) with a consolidated Value Rank of 4 (worse than 96% of alternatives). But they show above-average growth (Growth Rank of 67) and are safely financed (Safety Rank of 78, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 54, is a buy recommendation based on AB Sagax's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company AB Sagax exhibits low value (Obermatt Value Rank of 4), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 67). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 78) 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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