May 16, 2024
Top 10 Stock Chesnara 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: Chesnara – Top 10 Stock in SDG 10: Reduced Inequality
Chesnara is listed as a top 10 stock on May 16, 2024 in the market index SDG 10 because of its high performance in at least one of the Obermatt investment strategies. Only the Obermatt Value Rank exhibits above-average performance, which means that the stock is seen as critical by the professional community and other financial facts are below average, conveying mixed investment signals. Based on the Obermatt 360° View of 63 (high 63% performer), Obermatt assesses an overall buy recommendation for Chesnara on May 16, 2024.
Snapshot: Obermatt Ranks
| Country | United Kingdom |
| Industry | Life & Health Insurance |
| Index | FTSE All Shares, Dividends Europe, SDG 10, SDG 13, SDG 3, SDG 5, SDG 8, Sound Pay Europe |
| Size class | Medium |
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 Chesnara Buy
| 360 METRICS | May 16, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 87 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 14 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 6 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 13 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 63 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 63 (better than 63% compared with alternatives), overall professional sentiment and financial characteristics for the stock Chesnara are above average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for Chesnara. Only the consolidated Value Rank has an attractive rank of 87, which means that the share price of Chesnara is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 87% of alternative stocks in the same industry. All other consolidated ranks are below average. The consolidated Growth Rank has a low rank of 14, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The consolidated Safety Rank has a riskier rank of 6, meaning the company has a riskier financing structure than 94% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, professionals are more pessimistic about the stock than for 87% of alternative investment opportunities, reflected in the consolidated Sentiment Rank of 13. ...read more
RECOMMENDATION: With a consolidated 360° View of 63, Chesnara is better positioned than 63% of all alternative stock investment opportunities based on the Obermatt Method. Only one of the consolidated Obermatt Ranks exhibits above-average performance, namely the Value Rank at a level of 87. All other ranks are below average, so proceed with caution. The company has below-average growth expectations (Growth Rank of 14), a riskier financing structure than the competition (Safety Rank of 6), and the market sentiment in the professional investor community ranking at (Sentiment Rank of 13) is negative. This combination is sensitive to a crisis, because high debt levels (low safety) require growth to finance the debt burden. It’s no wonder that the investor community indicators are skeptical (low sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. We recommend evaluating whether the future of Chesnara is as challenging as the low price of the stock suggests. Since the professional community is pessimistic, you might need to worry about the future of Chesnara. Only invest if you have solid reasons to believe that the low growth is temporary and the current market sentiment is an overreaction, possibly due to reputational issues in the past. ...read more
Sentiment Strategy: Professional Market Sentiment for Chesnara negative
ANALYSIS: With an Obermatt Sentiment Rank of 13 (better than 13% compared with alternatives), overall professional sentiment and engagement for the stock Chesnara is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for Chesnara. Analyst Opinions are at a rank of 70 (better than 70% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. This is a good sign, were it not for Analyst Opinions Change with a low rank of 17, which means that currently, stock research experts are changing their opinions for the worse. In other words, they are getting more critical of a stock investment in Chesnara. The Professional Investors rank is also low at 37, meaning that professional investors hold less stock in this company than in 63% of alternative investment opportunities. Pros tend to invest in other companies. Even worse, Market Pulse has a low rank of 13, which means that the current professional news and professional social networks are critical of this company (more negative news than for 87% of competitors). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 13 (less encouraging than 87% compared with investment alternatives), Chesnara has a reputation among professional investors that is far below that of its competitors. There are several negative sentiment signals, with only the Analyst Opinions Rank above average. This could be a stock with a long reputation for being positive but where things are worsening. Most analysts may not see it yet, but some have, and the professionals are already quite pessimistic. Proceed with caution when investing in this stock. ...read more
Value Strategy: Chesnara Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 87 (better than 87% compared with alternatives) for 2022, Chesnara shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Chesnara. 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 Chesnara's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 53% 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 Chesnara are expected to be higher than for 95% of all competitors (a Dividend Yield rank of 95). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 87, is a buy recommendation based on Chesnara'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 Chesnara based on its detailed value metrics.
Growth Strategy: Chesnara Growth Momentum negative
ANALYSIS: With an Obermatt Growth Rank of 14 (better than 14% compared with alternatives), Chesnara 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 metrics below average for Chesnara. While Profit Growth has a good rank of 94, as professionals currently expect the company to grow its profits more than 94% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 5, which means that currently professionals expect the company to grow less than 95% of its competitors, while Capital Growth has a rank of 24 and Stock Returns have been below market median, with a rank of 15 (85% of alternative investments were better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 14, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. ...read more
Safety Strategy: Chesnara Debt Financing Safety risky
| SAFETY METRICS | May 16, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 40 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 100 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 10 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 6 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 6 (better than 6% compared with alternatives), the company Chesnara 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 Chesnara 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 just one indicator above average for Chesnara and the other two below average. Refinancing is at 100, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. But Leverage is high with a rank of 40, meaning the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. Liquidity is also on the riskier side with a rank of 10, meaning the company generates less profit to service its debt than 90% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 6 (worse than 94% compared with alternatives), Chesnara has a financing structure that is significantly riskier 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 Chesnara 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. ...read more
Combined financial peformance: Chesnara Below-Average Financial Performance
| COMBINED PERFORMANCE | May 16, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 87 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 14 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 10 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 43 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 43 (worse than 57% compared with investment alternatives), Chesnara (Life & Health Insurance, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Chesnara are a good value (attractively priced) with a consolidated Value Rank of 87 (better than 87% of alternatives) but show below-average growth (Growth Rank of 14), and are riskily financed (Safety Rank of 6), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 43, is a hold recommendation based on Chesnara's financial characteristics. As the company Chesnara's key financial metrics exhibit good value (Obermatt Value Rank of 87) but low growth (Obermatt Growth Rank of 14) and risky financing practices (Obermatt Safety Rank of 6), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 87% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.