October 17, 2024
Top 10 Stock Bega Cheese Hold 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 Bega Cheese Hold

360 METRICS	October 17, 2024
VALUE
VALUE	33
GROWTH
GROWTH	93
SAFETY
SAFETY	11
SENTIMENT
SENTIMENT	32
360° VIEW
360° VIEW	28

ANALYSIS: With an Obermatt 360° View of 28 (better than 28% compared with alternatives), overall professional sentiment and financial characteristics for the stock Bega Cheese are below the industry average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for Bega Cheese. The consolidated Growth Rank has a good rank of 93, 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. It ranks higher than 93% of competitors in the same industry. The other indicators are below average, namely the Value, Safety, and Sentiment Ranks.The Value Rank at 33 means that the share price of Bega Cheese is on the high side compared with its peers regarding revenues, profits, and invested capital. The stock price is higher than for 67% of alternative stocks in the same industry. The consolidated Safety Rank has a riskier rank of 11, which means that the company has a riskier financing structure than 89% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. The consolidated Sentiment Rank also has a low rank of 32, indicating professional investors are more pessimistic about the stock than for 68% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 28, Bega Cheese is worse than 72% of all alternative stock investment opportunities based on the Obermatt Method. As only one of the consolidated Obermatt Ranks exhibits excellent performance, namely the above-average growth (Growth Rank of 93), it is a riskier stock investment proposition. Aside from the critical professional market sentiment (Sentiment Rank of 32), the company is rather risky when it comes to financing (Safety Rank of 11). The negative market view on Bega Cheese may be due to the high stock price (low value). A growth company like this may get too expensive at one point in time. If too many investors are desperate to join the party, they may drive stock prices above reasonable levels. While it is typical for growth companies to have low value, because investors are willing to pay more for companies that are expected to have high growth, the crucial question is: how much more do you pay for the stock of Bega Cheese compared with alternatives? You can use the following rule of thumb: The value rank shouldn’t be lower than one minus the growth rank. For example, if the growth rank is at 75, and the value rank is at 5, you should tread carefully. If the value rank is at 40, it still might be a good value (even though it is lower than 50). As market sentiment is critical, you should be careful with paying more than market-average for this stock and conduct further research into the company's future growth potential. ...read more

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Sentiment Strategy: Professional Market Sentiment for Bega Cheese only reserved

SENTIMENT METRICS	October 17, 2024
ANALYST OPINION
ANALYST OPINION	38
OPINIONS CHANGE
OPINIONS CHANGE	39
PRO HOLDINGS
PRO HOLDINGS	67
MARKET PULSE
MARKET PULSE	11
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	32

ANALYSIS: With an Obermatt Sentiment Rank of 32 (better than 32% compared with alternatives), overall professional sentiment and engagement for the stock Bega Cheese 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 Bega Cheese. Analyst Opinions are at a rank of 38 (worse than 62% 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 39, 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 11, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 89% of competitors). On the upside, the Professional Investors rank is 67, which means that professional investors hold more stock in this company than in 67% 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 32 (less encouraging than 68% compared with investment alternatives), Bega Cheese 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 Bega Cheese 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

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Value Strategy: Bega Cheese Stock Price Value below-average critical

VALUE METRICS	October 17, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	65
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	7
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	31
DIVIDEND YIELD
DIVIDEND YIELD	52
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	33

ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), Bega Cheese shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Bega Cheese. Price-to-Sales (P/S) is 65, which means that the stock price compared with what market professionals expect for future sales is lower than for 65% of comparable companies, indicating a good value concerning Bega Cheese's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 52, which means that dividends are expected to be higher than for 52% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 69% of alternatives (only 31% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 93% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 33, is a hold recommendation based on Bega Cheese's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. ...read more

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Growth Strategy: Bega Cheese Growth Momentum high

GROWTH METRICS	October 17, 2024
REVENUE GROWTH
REVENUE GROWTH	48
PROFIT GROWTH
PROFIT GROWTH	88
CAPITAL GROWTH
CAPITAL GROWTH	64
STOCK RETURNS
STOCK RETURNS	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	93

ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, Bega Cheese shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Bega Cheese. Profit Growth has a rank of 88 which means that currently professionals expect the company to grow its profits more than 88% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 64, and Stock Returns has a rank of 100 which means that the stock returns have recently been above 100% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 48 (52% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. ...read more

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Safety Strategy: Bega Cheese Debt Financing Safety risky

SAFETY METRICS	October 17, 2024
LEVERAGE
LEVERAGE	36
REFINANCING
REFINANCING	17
LIQUIDITY
LIQUIDITY	11
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	11

ANALYSIS: With an Obermatt Safety Rank of 11 (better than 11% compared with alternatives), the company Bega Cheese has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Bega Cheese 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, with all three metrics below average for Bega Cheese. Liquidity is at 11, meaning that the company generates less profit to service its debt than 89% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 36, meaning the company has an above-average debt-to-equity ratio. It has more debt than 64% of its competitors. Finally, Refinancing is at a rank of 17 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 11 (worse than 89% compared with alternatives), Bega Cheese has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing.

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Combined financial peformance: Bega Cheese Below-Average Financial Performance

COMBINED PERFORMANCE	October 17, 2024
VALUE
VALUE	33
GROWTH
GROWTH	93
SAFETY
SAFETY	11
COMBINED
COMBINED	35

ANALYSIS: With an Obermatt Combined Rank of 35 (worse than 65% compared with investment alternatives), Bega Cheese (Packaged Foods & Meats, Australia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Bega Cheese are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives), and are riskily financed (Safety Rank of 11, which means above-average debt burdens) but show above-average growth (Growth Rank of 93). ...read more

RECOMMENDATION: A Combined Rank of 35, is a hold recommendation based on Bega Cheese's financial characteristics. As the company Bega Cheese shows low value with an Obermatt Value Rank of 33 (67% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 93% of comparable companies (Obermatt Growth Rank is 93). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 11 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Bega Cheese, even a low-value company (in terms of its key financial indicators) can be a good investment. ...read more

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