September 5, 2024
Top 10 Stock Energean 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 Energean Buy

360 METRICS	September 5, 2024
VALUE
VALUE	72
GROWTH
GROWTH	67
SAFETY
SAFETY	6
SENTIMENT
SENTIMENT	61
360° VIEW
360° VIEW	52

ANALYSIS: With an Obermatt 360° View of 52 (better than 52% compared with alternatives), overall professional sentiment and financial characteristics for the stock Energean are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Energean. The consolidated Value Rank has an attractive rank of 72, which means that the share price of Energean is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 72% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 67, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 61. But the company’s financing is risky with a Safety rank of 6. This means 94% of comparable companies have a safer financing structure than Energean. ...read more

RECOMMENDATION: With a consolidated 360° View of 52, Energean is better positioned than 52% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 72), above-average growth (Growth Rank of 67), and positive market sentiment in the professional investor community (Sentiment Rank of 61), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 6), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Energean is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Energean positive

SENTIMENT METRICS	September 5, 2024
ANALYST OPINION
ANALYST OPINION	90
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	69
MARKET PULSE
MARKET PULSE	12
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	61

ANALYSIS: With an Obermatt Sentiment Rank of 61 (better than 61% compared with alternatives), overall professional sentiment and engagement for the stock Energean is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Energean. Analyst Opinions are at a rank of 90 (better than 90% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. In addition, Analyst Opinions Change has a rank of 50, which means that stock research experts are changing their opinions for the better in recommending investing in the company. In other words, they are getting even more optimistic about investments in Energean. Finally, the Professional Investors rank is 69, which means that currently, professional investors hold more stock in this company than in 69% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 61 (more positive than 61% compared with investment alternatives), Energean has a reputation among professional investors that is above-average compared with that of its competitors. Pros tend to favor investing in this company. But there is also a signal for caution. Market Pulse has a rank of 12, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 88% of competitors). This could mean future risks and should make investors careful. Attention to negative news for Energean is worthwhile because they may be early warning signals. Without those, all other professional signals are encouraging, especially since analysts are getting more optimistic. ...read more

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Value Strategy: Energean Stock Price Value better than average

VALUE METRICS	September 5, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	36
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	93
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	28
DIVIDEND YIELD
DIVIDEND YIELD	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	72

ANALYSIS: With an Obermatt Value Rank of 72 (better than 72% compared with alternatives), Energean shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Energean. Price-to-Profit (also referred to as price-earnings, P/E) is 93 which means that the stock price compared with what market professionals expect for future profits is lower than for 93% of comparable companies, indicating a good value concerning Energean'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 28, which means that the stock price is lower as regards to invested capital than for 28% of comparable investments. On the other hand, Price-to-Sales is less favorable than 64% of alternatives (only 36% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 0% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 72, is a buy recommendation based on Energean'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 in respect to expected revenues, it means that 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 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 pay it out to shareholders, 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: Energean Growth Momentum good

GROWTH METRICS	September 5, 2024
REVENUE GROWTH
REVENUE GROWTH	90
PROFIT GROWTH
PROFIT GROWTH	88
CAPITAL GROWTH
CAPITAL GROWTH	17
STOCK RETURNS
STOCK RETURNS	33
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), Energean shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Energean. Sales Growth has a rank of 90, which means that, currently, professionals expect the company to grow more than 90% of its competitors. Profit Growth with a rank of 88 is also above average. But Capital Growth has only a rank of 17, and Stock Returns with 33 are also below-average. Stock returns for Energean have recently been below 67% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Energean. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. ...read more

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Safety Strategy: Energean Debt Financing Safety risky

SAFETY METRICS	September 5, 2024
LEVERAGE
LEVERAGE	5
REFINANCING
REFINANCING	14
LIQUIDITY
LIQUIDITY	27
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	6

ANALYSIS: With an Obermatt Safety Rank of 6 (better than 6% compared with alternatives), the company Energean 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 Energean 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 Energean. Liquidity is at 27, meaning that the company generates less profit to service its debt than 73% 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 5, meaning the company has an above-average debt-to-equity ratio. It has more debt than 95% of its competitors. Finally, Refinancing is at a rank of 14 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 6 (worse than 94% compared with alternatives), Energean has a financing structure that is significantly 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.

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Combined financial peformance: Energean Below-Average Financial Performance

COMBINED PERFORMANCE	September 5, 2024
VALUE
VALUE	72
GROWTH
GROWTH	67
SAFETY
SAFETY	27
COMBINED
COMBINED	42

ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Energean (Oil & Gas Production, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Energean are a good value (attractively priced) with a consolidated Value Rank of 72 (better than 72% of alternatives), show above-average growth (Growth Rank of 67) but are riskily financed (Safety Rank of 6), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Energean's financial characteristics. As the company Energean's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 72) and above-average growth (Obermatt Growth Rank of 67), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 6) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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