November 7, 2024
Top 10 Stock Banca Monte Dei Paschi Di Siena Strong 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: Banca Monte Dei Paschi Di Siena – Top 10 Stock in Renewable Energy Use Leaders
Banca Monte Dei Paschi Di Siena is listed as a top 10 stock on November 07, 2024 in the market index Renewables Users because of its high performance in at least one of the Obermatt investment strategies. As three out of four consolidated Obermatt Ranks exhibit excellent performance, it is a solid investment from a financial fact perspective where only investor sentiment is a reason for caution. Based on the Obermatt 360° View of 84 (top 84% performer), Obermatt assesses an overall strong buy recommendation for Banca Monte Dei Paschi Di Siena on November 07, 2024.
Snapshot: Obermatt Ranks
| Country | Italy |
| Industry | Diversified Banks |
| Index | Renewables Users, Sound Pay Europe |
| 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 Banca Monte Dei Paschi Di Siena Strong Buy
| 360 METRICS | November 7, 2024 | |||||||
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| VALUE | ||||||||
| VALUE | 99 |
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| GROWTH | ||||||||
| GROWTH | 53 |
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| SAFETY | ||||||||
| SAFETY | 100 |
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| SENTIMENT | ||||||||
| SENTIMENT | 20 |
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| 360° VIEW | ||||||||
| 360° VIEW | 84 |
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ANALYSIS: With an Obermatt 360° View of 84 (better than 84% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Banca Monte Dei Paschi Di Siena are very positive. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators above average for Banca Monte Dei Paschi Di Siena. The consolidated Value Rank has an attractive rank of 99, which means that the share price of Banca Monte Dei Paschi Di Siena 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 99% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 53, 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. The company is also safely financed with a Safety Rank of 100. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of only 20. Professional investors are more confident in 80% other stocks. ...read more
RECOMMENDATION: With a consolidated 360° View of 84, Banca Monte Dei Paschi Di Siena is better positioned than 84% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 99), above-average growth (Growth Rank of 53), and safe financing practices (Safety Rank of 100), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the professional market sentiment is on the riskier side (Sentiment Rank of 20), but that could also mean an overreaction to negative news in the past. Good value is sometimes an indication that the company's future is challenging. If they have been enjoying above average growth and are still a good value, this may not continue. We recommend evaluating whether the future of Banca Monte Dei Paschi Di Siena is as challenging as the low price of the stock despite good growth and safe financing practices suggest. Since the professional community is pessimistic, you may want to reflect these negative opinions in light of what you find reasonable to expect for the future. If you believe this pessimistic view is transitory, you have a solid investment case based on current financial factors. ...read more
Sentiment Strategy: Professional Market Sentiment for Banca Monte Dei Paschi Di Siena negative
ANALYSIS: With an Obermatt Sentiment Rank of 20 (better than 20% compared with alternatives), overall professional sentiment and engagement for the stock Banca Monte Dei Paschi Di Siena 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 Banca Monte Dei Paschi Di Siena. Analyst Opinions are at a rank of 60 (better than 60% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive and has a rank of 76 which means that currently, stock research experts are getting even more optimistic about investments in Banca Monte Dei Paschi Di Siena. But Market Pulse has a low rank of 21, 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 79% of competitors). This is an essential sign of caution, as it could be the forebearer of bad news. Professional Investors are also somewhat absent with a rank of 14, which means that, currently, professional investors hold less stock in this company than in 86% of alternative investment opportunities. Pros tend to invest in other companies. This is expected if the company is of a smaller size (medium or smaller). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 20 (less encouraging than 80% compared with investment alternatives), Banca Monte Dei Paschi Di Siena has a reputation among professional investors that is far below that of its competitors. While the general news feeds in the professional market are negative, the analyst recommendations are optimistic about the company, and even increase their ratings despite the negative news. This is an ambiguous situation with positive and negative signals from the professional side. Investors should be on the lookout for negative news but not worry too much about it as long as the overall news is still positive. ...read more
Value Strategy: Banca Monte Dei Paschi Di Siena Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 99 (better than 99% compared with alternatives) for 2024, Banca Monte Dei Paschi Di Siena shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Banca Monte Dei Paschi Di Siena. Price-to-Sales is 81 which means that the stock price compared with what market professionals expect for future sales is lower than for 81% of comparable companies, indicating a good value for Banca Monte Dei Paschi Di Siena's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 91% 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 89. Compared with other companies in the same industry, dividend yields of Banca Monte Dei Paschi Di Siena are expected to be higher than for 100% of all competitors (a Dividend Yield rank of 100). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 99, is a buy recommendation based on Banca Monte Dei Paschi Di Siena'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 Banca Monte Dei Paschi Di Siena based on its detailed value metrics.
Growth Strategy: Banca Monte Dei Paschi Di Siena Growth Momentum good
ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Banca Monte Dei Paschi Di Siena 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 Banca Monte Dei Paschi Di Siena. Capital Growth has a rank of 89, which means that currently professionals expect the company to grow its invested capital more than 4% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 100 (above 100% of alternative investments). But Sales Growth has only a rank of 28, which means that, currently, professionals expect the company to grow less than 72% of its competitors, and Profit Growth is also low at a rank of 4. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Banca Monte Dei Paschi Di Siena, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. ...read more
Safety Strategy: Banca Monte Dei Paschi Di Siena Debt Financing Safety very solid
| SAFETY METRICS | November 7, 2024 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 88 |
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| REFINANCING | ||||||||
| REFINANCING | 96 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 78 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 100 |
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ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2024, the company Banca Monte Dei Paschi Di Siena has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Banca Monte Dei Paschi Di Siena 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 Banca Monte Dei Paschi Di Siena. Leverage is at 88, meaning the company has a below-average debt-to-equity ratio. It has less debt than 88% of its competitors. Refinancing is at a rank of 96, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 96% of its competitors. Finally, Liquidity is also good at a rank of 78, which means that the company generates more profit to service its debt than 78% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), Banca Monte Dei Paschi Di Siena 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
Combined financial peformance: Banca Monte Dei Paschi Di Siena Top Financial Performance
| COMBINED PERFORMANCE | November 7, 2024 | |||||||
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| VALUE | ||||||||
| VALUE | 99 |
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| GROWTH | ||||||||
| GROWTH | 53 |
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| SAFETY | ||||||||
| SAFETY | 78 |
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| COMBINED | ||||||||
| COMBINED | 99 |
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ANALYSIS: With an Obermatt Combined Rank of 99 (better than 99% compared with investment alternatives), Banca Monte Dei Paschi Di Siena (Diversified Banks, Italy) shares have much better financial characteristics than comparable stocks. Shares of Banca Monte Dei Paschi Di Siena are a good value (attractively priced) with a consolidated Value Rank of 99 (better than 99% of alternatives), show above-average growth (Growth Rank of 53), and are safely financed (Safety Rank of 100), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 99, is a strong buy recommendation based on Banca Monte Dei Paschi Di Siena's financial characteristics. As the company Banca Monte Dei Paschi Di Siena's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 99), above-average growth (Obermatt Growth Rank of 53), and indicate that the company is safely financed (Obermatt Safety Rank of 100), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Banca Monte Dei Paschi Di Siena. 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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