December 19, 2024
Top 10 Stock CTM 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: CTM – Top 10 Stock in Australian Securities Exchange Index ASX 300
CTM is listed as a top 10 stock on December 19, 2024 in the market index ASX 300 because of its high performance in at least one of the Obermatt investment strategies. As three out of four consolidated Obermatt Ranks exhibit excellent performance, it is a solid investment where the risk of paying too much for the shares is low, despite a currently slow growth momentum. Based on the Obermatt 360° View of 70 (high 70% performer), Obermatt assesses an overall buy recommendation for CTM on December 19, 2024.
Snapshot: Obermatt Ranks
| Country | Australia |
| Industry | Hotels, Resorts & Cruise Lines |
| Index | ASX 200, ASX 300, Wind Energy |
| 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 CTM Buy
| 360 METRICS | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 59 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 31 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 85 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 60 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 70 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 70 (better than 70% compared with alternatives), overall professional sentiment and financial characteristics for the stock CTM are above average. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for CTM. The consolidated Value Rank has an attractive rank of 59, which means that the share price of CTM is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 59% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 85. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 60. But the consolidated Growth Rank has a low rank of 31, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 69 of its competitors have better growth. ...read more
RECOMMENDATION: With a consolidated 360° View of 70, CTM is better positioned than 70% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 59), secure financing practices (Safety Rank of 85), and positive market sentiment in the professional investor community (Sentiment Rank of 60). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 31), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of CTM is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more
Sentiment Strategy: Professional Market Sentiment for CTM positive
ANALYSIS: With an Obermatt Sentiment Rank of 60 (better than 60% compared with alternatives), overall professional sentiment and engagement for the stock CTM is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for CTM. Analyst Opinions are at a rank of 34 (worse than 66% 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 50, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in CTM. Even better, the Professional Investors rank is 69, meaning that professional investors hold more stock in this company than in 69% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 74, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 74% of competitors). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 60 (more positive than 60% compared with investment alternatives), CTM has a reputation among professional investors that is above-average compared with that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more
Value Strategy: CTM Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), CTM shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for CTM. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 59 which means that the stock price compared with what market professionals expect for future profits is lower than for 59% of comparable companies, indicating a good value concerning CTM'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 72, and for Dividend Yield with a Dividend Yield Rank of 65. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 81% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 19). 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 59, is a buy recommendation based on CTM'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 CTM 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 CTM shares. ...read more
Growth Strategy: CTM Growth Momentum low
| GROWTH METRICS | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 76 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 29 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 44 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 17 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 31 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), CTM 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 three out of four indicators below-average for CTM. While Sales Growth ranks at 76, professionals currently expect the company to grow more than 76% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 29, which means that, currently, professionals expect the company to grow its profits less than 71% of its competitors, and Capital Growth has a low rank of 44. Historic stock returns were also below average with a current Stock Returns rank of 17 which means that the stock returns have recently been below 83% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 31, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. ...read more
Safety Strategy: CTM Debt Financing Safety very solid
| SAFETY METRICS | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 84 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 63 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 76 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 85 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 85 (better than 85% compared with alternatives) for 2024, the company CTM has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of CTM 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 CTM. Leverage is at 84, meaning the company has a below-average debt-to-equity ratio. It has less debt than 84% of its competitors. Refinancing is at a rank of 63, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Finally, Liquidity is also good at a rank of 76, which means that the company generates more profit to service its debt than 76% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 85 (better than 85% compared with alternatives), CTM 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
Combined financial peformance: CTM Above-Average Financial Performance
| COMBINED PERFORMANCE | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 59 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 31 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 76 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 73 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 73 (better than 73% compared with investment alternatives), CTM (Hotels, Resorts & Cruise Lines, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of CTM are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), are safely financed (Safety Rank of 85, which means low debt burdens), but show below-average growth (Growth Rank of 31). ...read more
RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on CTM's financial characteristics. As the company CTM's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 31) while being safely financed (Obermatt Safety Rank of 85), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 59% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. ...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.