November 28, 2024
Top 10 Stock 7C Solarparken 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: 7C Solarparken – Top 10 Stock in Solar Technology
7C Solarparken is listed as a top 10 stock on November 28, 2024 in the market index Solar Tech because of its high performance in at least one of the Obermatt investment strategies. While only half of the consolidated Obermatt Ranks exhibit above-average performance, the professional market sentiment is positive and it may be a solid investment proposition, especially if a growth recovery is to be expected soon. Based on the Obermatt 360° View of 71 (high 71% performer), Obermatt assesses an overall buy recommendation for 7C Solarparken on November 28, 2024.
Snapshot: Obermatt Ranks
| Country | Germany |
| Industry | Renewable Electricity |
| Index | CDAX, Solar Tech |
| Size class | X-Small |
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 7C Solarparken Buy
| 360 METRICS | November 28, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 92 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 26 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 40 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 60 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 71 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 71 (better than 71% compared with alternatives), overall professional sentiment and financial characteristics for the stock 7C Solarparken are above average. The 360° View is based on consolidating four consolidated indicators, with half the metrics below and half above average for 7C Solarparken. The consolidated Value Rank has an attractive rank of 92, which means that the share price of 7C Solarparken 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 92% of alternative stocks in the same industry. The consolidated Sentiment Rank has a good rank of 60, which means that professional investors are more optimistic about the stock than for 60% of alternative investment opportunities. But the consolidated Growth Rank has a low rank of 26, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. The consolidated Safety Rank has a riskier rank of 40, meaning the company has a riskier financing structure than 60 comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more
RECOMMENDATION: With a consolidated 360° View of 71, 7C Solarparken is better positioned than 71% of all alternative stock investment opportunities based on the Obermatt Method. Half of the consolidated Obermatt Ranks exhibit above-average performance, but the other half are below market levels. The company enjoys a good value (Value Rank of 92) and positive market sentiment in the professional investor community (Sentiment Rank of 60), but growth expectations are below-average (Growth Rank of 26) and the financing structure is on the risky side(Safety Rank of 40). This combination is rather dangerous, because high debt levels (low safety) require growth to finance the debt burden. The current low growth level may be temporary, because professionals are actually optimistic (positive 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. Companies with less growth typically have a lower price than fast-growing competitors. Even though professional investor sentiment is strong, we recommend further evaluating whether the future of 7C Solarparken is as challenging as the stock's low price suggests. Since the professional community is optimistic, the stock might just be going through a more challenging phase now, indicating that timing might be good now. ...read more
Sentiment Strategy: Professional Market Sentiment for 7C Solarparken positive
ANALYSIS: With an Obermatt Sentiment Rank of 60 (better than 60% compared with alternatives), overall professional sentiment and engagement for the stock 7C Solarparken is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for 7C Solarparken. Analyst Opinions are at a rank of 84 (better than 84% 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 50 which means that currently, stock research experts are getting even more optimistic about investments in 7C Solarparken. But Market Pulse has a low rank of 31, 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 69% 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 33, which means that, currently, professional investors hold less stock in this company than in 67% 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 60 (more positive than 60% compared with investment alternatives), 7C Solarparken has a reputation among professional investors that is above-average compared with 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: 7C Solarparken Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 92 (better than 92% compared with alternatives) for 2024, 7C Solarparken shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for 7C Solarparken. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 80 which means that the stock price compared with what market professionals expect for future profits is lower than for 80% of comparable companies, indicating a good value concerning 7C Solarparken's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 85, and for Dividend Yield with a Dividend Yield Rank of 82. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 62% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 38). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 92, is a buy recommendation based on 7C Solarparken's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that 7C Solarparken has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing 7C Solarparken shares. ...read more
Growth Strategy: 7C Solarparken Growth Momentum low
| GROWTH METRICS | November 28, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 23 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 43 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 45 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 26 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 26 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 26 (better than 26% compared with alternatives), 7C Solarparken shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for 7C Solarparken. Sales Growth has a rank of 23, which means that currently professionals expect the company to grow less than 77% of its competitors. The same is valid for Profit Growth, with a rank of 43, and Capital Growth with 45. In addition, Stock Returns have a below market rank of 26, which means that the stock returns have recently been below 74% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 26, is a hold recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. ...read more
Safety Strategy: 7C Solarparken Debt Financing Safety below-average
| SAFETY METRICS | November 28, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 29 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 48 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 49 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 40 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 40 (better than 40% compared with alternatives), the company 7C Solarparken has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of 7C Solarparken 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 7C Solarparken. Liquidity is at 49, meaning that the company generates less profit to service its debt than 51% 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 29, meaning the company has an above-average debt-to-equity ratio. It has more debt than 71% of its competitors. Finally, Refinancing is at a rank of 48 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 52% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 40 (worse than 60% compared with alternatives), 7C Solarparken has a financing structure that is 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.
Combined financial peformance: 7C Solarparken Above-Average Financial Performance
| COMBINED PERFORMANCE | November 28, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 92 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 26 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 49 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 60 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 60 (better than 60% compared with investment alternatives), 7C Solarparken (Renewable Electricity, Germany) shares have above-average financial characteristics compared with similar stocks. Shares of 7C Solarparken are a good value (attractively priced) with a consolidated Value Rank of 92 (better than 92% of alternatives) but show below-average growth (Growth Rank of 26), and are riskily financed (Safety Rank of 40), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 60, is a buy recommendation based on 7C Solarparken's financial characteristics. As the company 7C Solarparken's key financial metrics exhibit good value (Obermatt Value Rank of 92) but low growth (Obermatt Growth Rank of 26) and risky financing practices (Obermatt Safety Rank of 40), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 92% 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.