October 3, 2024
Top 10 Stock Aperam Hold 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: Aperam – Top 10 Stock in Société des Bourses Françaises Index SBF 120
Aperam is listed as a top 10 stock on October 03, 2024 in the market index SBF 120 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 below average and thus a signal for caution. Based on the Obermatt 360° View of 48 (48% performer), Obermatt assesses an overall hold recommendation for Aperam on October 03, 2024.
Snapshot: Obermatt Ranks
Country | Luxembourg |
Industry | Steel |
Index | BEL20, CAC All, SBF 120, Dividends Europe, Energy Efficient, Human Rights, Renewables Users, Water Efficiency |
Size class | X-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 Aperam Hold
360 METRICS | October 3, 2024 | |||||||
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VALUE | ||||||||
VALUE | 87 |
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GROWTH | ||||||||
GROWTH | 66 |
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SAFETY | ||||||||
SAFETY | 48 |
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SENTIMENT | ||||||||
SENTIMENT | 5 |
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360° VIEW | ||||||||
360° VIEW | 48 |
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ANALYSIS: With an Obermatt 360° View of 48 (better than 48% compared with alternatives), overall professional sentiment and financial characteristics for the stock Aperam are below the industry average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for Aperam. The consolidated Value Rank has an attractive rank of 87, which means that the share price of Aperam 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 87% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 66, 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. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of 5. Professional investors are more confident in 95% other stocks. Worryingly, the company has risky financing, with a Safety rank of 48. This means 52% of comparable companies have a safer financing structure than Aperam. ...read more
RECOMMENDATION: With a consolidated 360° View of 48, Aperam is worse than 52% of all alternative stock investment opportunities based on the Obermatt Method. Even though half of the consolidated Obermatt Ranks are above-average, namely the Value Rank at 87 and the Growth Rank above-average at 66, the picture is still mixed. The professional investor community is skeptical, with the Sentiment Rank below-average at 5. In addition, the company financing structure is on the riskier side (Safety Rank of 48). Since the company is good value and the share price low, it should attract investors, yet professionals are skeptical. One may be tempted by above-average growth, but that could also change quickly, as past performance is not a good indicator of future performance. Since the financing structure is on the risky side, investors should 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 Aperam negative
ANALYSIS: With an Obermatt Sentiment Rank of 5 (better than 5% compared with alternatives), overall professional sentiment and engagement for the stock Aperam is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Aperam. 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 34 which means that stock research experts are getting even more pessimistic. It doesn't end with the analysts. Market Pulse is also low with a rank of 40, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 60% of competitors). No wonder, the Professional Investors rank is only 3, which means that professional investors hold less stock in this company than in 97% of alternative investment opportunities. Pros tend to stay away from Aperam, which may be due to a small company size but just as likely because of its relatively low Sentiment Rank. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 5 (less encouraging than 95% compared with investment alternatives), Aperam has a reputation among professional investors that is far below that of its competitors. Investors should be careful with this stock right now. Further research is required if an investment is desired, because the facts found in the professional community are all negative. ...read more
Value Strategy: Aperam Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 87 (better than 87% compared with alternatives) for 2024, Aperam shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Aperam. Price-to-Sales is 83 which means that the stock price compared with what market professionals expect for future sales is lower than for 83% of comparable companies, indicating a good value for Aperam's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 50% 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 79. Compared with other companies in the same industry, dividend yields of Aperam are expected to be higher than for 97% of all competitors (a Dividend Yield rank of 97). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 87, is a buy recommendation based on Aperam'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 Aperam based on its detailed value metrics.
Growth Strategy: Aperam Growth Momentum good
ANALYSIS: With an Obermatt Growth Rank of 66 (better than 66% compared with alternatives), Aperam 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 all but one indicator above average for Aperam. Sales Growth has a rank of 73 which means that currently, professionals expect the company to grow more than 73% of its competitors. Capital Growth is also above 15% of competitors with a rank of 80, and Stock Returns with the rank of 69 is also an outperformance. Only Profit Growth is low with a rank of 15 which means that currently, professionals expect the company to grow its profits less than 85% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 66, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Aperam is a good growth stock. ...read more
Safety Strategy: Aperam Debt Financing Safety below-average
SAFETY METRICS | October 3, 2024 | |||||||
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LEVERAGE | ||||||||
LEVERAGE | 64 |
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REFINANCING | ||||||||
REFINANCING | 73 |
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LIQUIDITY | ||||||||
LIQUIDITY | 14 |
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CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 48 |
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ANALYSIS: With an Obermatt Safety Rank of 48 (better than 48% compared with alternatives), the company Aperam 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 Aperam 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 two out of three are above average for Aperam.Leverage is at 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors.Refinancing is at a rank of 73, 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 73% of its competitors. Liquidity is at 14, meaning that the company generates less profit to service its debt than 86% 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 48 (worse than 52% compared with alternatives), Aperam has a financing structure that is riskier 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
Combined financial peformance: Aperam Top Financial Performance
COMBINED PERFORMANCE | October 3, 2024 | |||||||
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VALUE | ||||||||
VALUE | 87 |
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GROWTH | ||||||||
GROWTH | 66 |
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SAFETY | ||||||||
SAFETY | 14 |
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COMBINED | ||||||||
COMBINED | 78 |
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ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Aperam (Steel, Luxembourg) shares have much better financial characteristics than comparable stocks. Shares of Aperam are a good value (attractively priced) with a consolidated Value Rank of 87 (better than 87% of alternatives), show above-average growth (Growth Rank of 66) but are riskily financed (Safety Rank of 48), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Aperam's financial characteristics. As the company Aperam's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 87) and above-average growth (Obermatt Growth Rank of 66), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 48) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more
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