Fact based stock research
Berner Kantonalbank (SWX:BEKN)

CH0009691608

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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.

Berner Kantonalbank stock research in summary

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ANALYSIS: With an Obermatt Combined Rank of 19 (worse than 81% compared with investment alternatives), Berner Kantonalbank (Regional Banks, Switzerland) shares have lower financial characteristics compared with similar stocks. Shares of Berner Kantonalbank are low in value (priced high) with a consolidated Value Rank of 28 (worse than 72% of alternatives) and show below-average growth (Growth Rank of 10) but are safely financed (Safety Rank of 91), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 19, is a sell recommendation based on Berner Kantonalbank's financial characteristics. As the company Berner Kantonalbank's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 28) and low growth (Obermatt Growth Rank of 10), 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. In this case, good financing practices (Obermatt Safety Rank of 91) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	28
Growth Rank	10
Safety Rank	91
Combined Rank	19

Country	Switzerland
Industry	Regional Banks
Index	Dividends Europe, SPI
Size class	Medium

This stock has achievements: Gold Winner CEO.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Berner Kantonalbank

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	80	76	73	28
GROWTH
GROWTH	2	67	55	10
SAFETY
SAFETY	87	51	59	91
SENTIMENT
SENTIMENT	n/a	n/a	18	^new
360° VIEW
360° VIEW	n/a	51	84	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Berner Kantonalbank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	80	76	73	28
GROWTH
GROWTH	2	67	55	10
SAFETY
SAFETY	87	51	59	91
COMBINED
COMBINED	87	59	91	19

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Berner Kantonalbank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 28 (worse than 72% compared with alternatives), Berner Kantonalbank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Berner Kantonalbank. Expected dividend yields are higher than for 55% of comparable companies (a Dividend Yield rank of 55), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 50, which means that the stock price is lower compared with invested capital than for 50% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 34 which means that the stock price compared with what market professionals expect for future profits is higher than for 66% of comparable companies, indicating a low value concerning Berner Kantonalbank's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Berner Kantonalbank with a rank of 1. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 99% of comparable companies, indicating a low value concerning Berner Kantonalbank's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 28, is a hold recommendation based on Berner Kantonalbank's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Berner Kantonalbank may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	60	50	40	34
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	80	67	20	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	60	83	80	50
DIVIDEND YIELD
DIVIDEND YIELD	78	76	84	55
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	80	76	73	28

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Berner Kantonalbank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 10 (better than 10% compared with alternatives), Berner Kantonalbank 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 indicators below average for Berner Kantonalbank. Only Capital Growth has a good rank of 55, which means that currently professionals expect the company to grow its invested capital more than 19% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 37 which means that currently professionals expect the company to grow less than 63% of its competitors. Profit Growth with a rank of 19 and Stock Returns with a rank of 37 are also low (below 63% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 10, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Berner Kantonalbank is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	67	59	91	37
PROFIT GROWTH
PROFIT GROWTH	77	100	46	19
CAPITAL GROWTH
CAPITAL GROWTH	n/a	26	18	55
STOCK RETURNS
STOCK RETURNS	7	34	82	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	2	67	55	10

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Berner Kantonalbank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 91 (better than 91% compared with alternatives) for 2024, the company Berner Kantonalbank has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Berner Kantonalbank 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 Berner Kantonalbank. Leverage is at 55, meaning the company has a below-average debt-to-equity ratio. It has less debt than 55% of its competitors. Refinancing is at a rank of 82, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 82% of its competitors. Finally, Liquidity is also good at a rank of 73, which means that the company generates more profit to service its debt than 73% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 91 (better than 91% compared with alternatives), Berner Kantonalbank 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. Investors may not have a debt issue with Berner Kantonalbank but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	87	58	58	55
REFINANCING
REFINANCING	67	100	76	82
LIQUIDITY
LIQUIDITY	23	1	26	73
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87	51	59	91

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Berner Kantonalbank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	n/a	n/a	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	n/a	n/a	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	100	64	^new
MARKET PULSE
MARKET PULSE	n/a	38	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	n/a	18	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Berner Kantonalbank.
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