Fact based stock research
CESC (NSEI:CESC)
INE486A01021
How to read the free 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.
CESC stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), CESC (Electric Utilities, India) shares have much better financial characteristics than comparable stocks. Shares of CESC are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives). But they show above-average growth (Growth Rank of 98) and are safely financed (Safety Rank of 54, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on CESC's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company CESC exhibits low value (Obermatt Value Rank of 38), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 98). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 54) 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). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | India |
Industry | Electric Utilities |
Index | Low Emissions, Good Governace Growth Markets |
Size class | Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: CESC
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 79 |
|
88 |
|
82 |
|
38 |
|
GROWTH | ||||||||
GROWTH | 79 |
|
81 |
|
51 |
|
98 |
|
SAFETY | ||||||||
SAFETY | 14 |
|
47 |
|
51 |
|
54 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
91 |
|
98 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
100 |
|
92 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), CESC (Electric Utilities, India) shares have much better financial characteristics than comparable stocks. Shares of CESC are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives). But they show above-average growth (Growth Rank of 98) and are safely financed (Safety Rank of 54, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on CESC's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company CESC exhibits low value (Obermatt Value Rank of 38), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 98). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 54) 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). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 79 |
|
88 |
|
82 |
|
38 |
|
GROWTH | ||||||||
GROWTH | 79 |
|
81 |
|
51 |
|
98 |
|
SAFETY | ||||||||
SAFETY | 14 |
|
47 |
|
51 |
|
54 |
|
COMBINED | ||||||||
COMBINED | 62 |
|
94 |
|
78 |
|
84 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 38 (worse than 62% compared with alternatives), CESC shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for CESC. Price-to-Sales (P/S) is 62, which means that the stock price compared with what market professionals expect for future sales is lower than 62% of comparable companies, indicating a good value concerning to CESC's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 34, meaning that dividends are expected to be lower than for 66% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 63% of alternatives (only 37% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 60% 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 38, is a hold recommendation based on CESC's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in CESC could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, CESC looks like an expensive investment today. 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 especially important 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) | 68 |
|
76 |
|
80 |
|
62 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 58 |
|
89 |
|
76 |
|
40 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 67 |
|
64 |
|
65 |
|
37 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 69 |
|
88 |
|
59 |
|
34 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 79 |
|
88 |
|
82 |
|
38 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 98 (better than 98% compared with alternatives) for 2024, CESC 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 four indicators above average for CESC. Sales Growth has a value of 65, which means that, currently, professionals expect the company to grow more than 65% of its competitors. The same is valid for Profit Growth with a value of 67 and for Capital Growth with 100. In addition, Stock Returns had an above-average rank value of 94, which means they have been higher than 94% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 98, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, CESC exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. 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. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 66 |
|
49 |
|
60 |
|
65 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | n/a |
|
39 |
|
29 |
|
67 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
98 |
|
24 |
|
100 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 79 |
|
77 |
|
75 |
|
94 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 79 |
|
81 |
|
51 |
|
98 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company CESC has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of CESC 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, with just one indicator above average for CESC and the other two below average. Refinancing is at 72, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 72% of its competitors. But Leverage is high with a rank of 43, meaning the company has an above-average debt-to-equity ratio. It has more debt than 57% of its competitors. Liquidity is also on the riskier side with a rank of 44, meaning the company generates less profit to service its debt than 56% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), CESC has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for CESC are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with CESC and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 25 |
|
28 |
|
34 |
|
43 |
|
REFINANCING | ||||||||
REFINANCING | 6 |
|
81 |
|
91 |
|
72 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 43 |
|
37 |
|
39 |
|
44 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 14 |
|
47 |
|
51 |
|
54 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
100 |
|
97 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
50 |
|
72 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
71 |
|
94 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
42 |
|
43 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
91 |
|
98 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for CESC from December 19, 2024.
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