June 22, 2023
Top 10 Stock Concordia Financial Group Buy 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 Concordia Financial Group Buy

360 METRICS	June 22, 2023
VALUE
VALUE	43
GROWTH
GROWTH	37
SAFETY
SAFETY	98
SENTIMENT
SENTIMENT	57
360° VIEW
360° VIEW	72

ANALYSIS: With an Obermatt 360° View of 72 (better than 72% compared with alternatives), overall professional sentiment and financial characteristics for the stock Concordia Financial Group are above average. The 360° View is based on consolidating four consolidated indicators, with half below and half above average for Concordia Financial Group. The consolidated Sentiment Rank has a good rank of 57, which means that professional investors are more optimistic about the stock than for 57% of alternative investment opportunities. It also rates well regarding its financing structure, with the consolidated Safety Rank at 98 or better than 98% of its peers when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the stock is expensive and expects low growth. The consolidated Value Rank is only 43, meaning that the share price of Concordia Financial Group is on the high side, compared with indicators such as revenues, profits, and invested capital. The company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth,and stock returns, with its Growth Rank at 37. ...read more

RECOMMENDATION: With a 360° View of 72, Concordia Financial Group is better positioned than 72% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, namely the positive professional market sentiment (Sentiment Rank of 57) and safe financing practices (Safety Rank of 98), the case for investing in this stock needs further thought. The Value and the Safety Ranks are below average. The Safety Rank is the least critical of the four consolidated ranks, because it only reflects financing practices. So the question is: How to assess below-average value against above-average sentiment? This may be a case where growth is in the future, not yet reflected in current performance. Companies that might fall into this category are those with intellectual property, such as technology and pharmaceutical companies. In early phases, they are expensive relative to their size and have a lot of capital on their books, as is the case here. Investors expect a better future and are willing to pay a higher price than is warranted by the current company size. These higher prices drive stock price value down in the short term. In this case, future growth may be the strongest driver of the investment case, reflected by institutional investors' opinions. With a weak Value Rank, the question is how much to sacrifice value at the cost of positive sentiment. Sometimes market sentiment is just hype, but sometimes it is right. You pay more than market-average for this stock, but it may be worth it, if the future of Concordia Financial Group̣ is bright. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for Concordia Financial Group positive

SENTIMENT METRICS	June 22, 2023
ANALYST OPINION
ANALYST OPINION	45
OPINIONS CHANGE
OPINIONS CHANGE	60
PRO HOLDINGS
PRO HOLDINGS	65
MARKET PULSE
MARKET PULSE	32
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	57

ANALYSIS: With an Obermatt Sentiment Rank of 57 (better than 57% compared with alternatives), overall professional sentiment and engagement for the stock Concordia Financial Group is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Concordia Financial Group. Analyst Opinions are at a rank of 45 (worse than 55% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 60, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Concordia Financial Group. More encouragingly, the Professional Investors rank is 65, which means that professional investors hold more stock in this company than in 65% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 32, 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 68% of competitors). ...read more

RECOMMENDATION: With an Obermatt Sentiment Rank of 57 (more positive than 57% compared with investment alternatives), Concordia Financial Group has a reputation among professional investors that is above-average compared with that of its competitors. The sentiment signals are mixed for Concordia Financial Group. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: Concordia Financial Group Stock Price Value below-average critical

VALUE METRICS	June 22, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	34
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	52
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56
DIVIDEND YIELD
DIVIDEND YIELD	40
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	43

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), Concordia Financial Group 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 Concordia Financial Group. Price-to-Profit (also referred to as price-earnings, P/E) is 52 which means that the stock price compared with what market professionals expect for future profits is lower than for 52% of comparable companies, indicating a good value concerning Concordia Financial Group's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 56, which means that the stock price is lower as regards to invested capital than for 56% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 66% of alternatives (only 34% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 60% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a HOLD recommendation based on Concordia Financial Group's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. ...read more

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Growth Strategy: Concordia Financial Group Growth Momentum low

GROWTH METRICS	June 22, 2023
REVENUE GROWTH
REVENUE GROWTH	77
PROFIT GROWTH
PROFIT GROWTH	29
CAPITAL GROWTH
CAPITAL GROWTH	45
STOCK RETURNS
STOCK RETURNS	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	37

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), Concordia Financial Group 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 half of the indicators below and half above average for Concordia Financial Group. Sales Growth has a rank of 77 which means that currently professionals expect the company to grow more than 77% of its competitors. Stock Returns are also above average with a rank of 61. But Capital Growth has only a rank of 45, which means that currently professionals expect the company to grow its invested capital less than 55% of its competitors. Profit Growth is also low, with a rank of only 29, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a HOLD recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 61% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. ...read more

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Safety Strategy: Concordia Financial Group Debt Financing Safety very solid

SAFETY METRICS	June 22, 2023
LEVERAGE
LEVERAGE	89
REFINANCING
REFINANCING	69
LIQUIDITY
LIQUIDITY	85
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98

ANALYSIS: With an Obermatt Safety Rank of 98 (better than 98% compared with alternatives) for 2023, the company Concordia Financial Group has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Concordia Financial Group 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 Concordia Financial Group. Leverage is at 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors. Refinancing is at a rank of 69, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 69% of its competitors. Finally, Liquidity is also good at a rank of 85, which means that the company generates more profit to service its debt than 85% of its competitors. ...read more

RECOMMENDATION: With an Obermatt Safety Rank of 98 (better than 98% compared with alternatives), Concordia Financial Group 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. ...read more

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Combined financial peformance: Concordia Financial Group Top Financial Performance

COMBINED PERFORMANCE	June 22, 2023
VALUE
VALUE	43
GROWTH
GROWTH	37
SAFETY
SAFETY	85
COMBINED
COMBINED	77

ANALYSIS: With an Obermatt Combined Rank of 77 (better than 77% compared with investment alternatives), Concordia Financial Group (Regional Banks, Japan) shares have much better financial characteristics than comparable stocks. Shares of Concordia Financial Group are low in value (priced high) with a consolidated Obermatt Value Rank of 43 (worse than 57% of alternatives) and show below-average growth (Growth Rank of 37) but are safely financed (Safety Rank of 98), which means low debt burdens. ...read more

RECOMMENDATION: An Obermatt Combined Rank of 77, is a strong buy recommendation based on Concordia Financial Group's financial characteristics. As the company Concordia Financial Group's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 43) and low growth (Obermatt Growth Rank of 37), 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 98) 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. ...read more

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