Fact based stock research
FLSmidth (CPSE:FLS)
DK0010234467
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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.
FLSmidth stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 24 (worse than 76% compared with investment alternatives), FLSmidth (Heavy Machinery, Denmark) shares have lower financial characteristics compared with similar stocks. Shares of FLSmidth are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives), and are riskily financed (Safety Rank of 42, which means above-average debt burdens) but show above-average growth (Growth Rank of 57). ...read more
RECOMMENDATION: A Combined Rank of 24, is a sell recommendation based on FLSmidth's financial characteristics. As the company FLSmidth shows low value with an Obermatt Value Rank of 23 (77% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 57% of comparable companies (Obermatt Growth Rank is 57). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 42 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for FLSmidth, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Denmark |
| Industry | Heavy Machinery |
| Index | |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: FLSmidth
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 65 |
|
45 |
|
41 |
|
23 |
|
| GROWTH | ||||||||
| GROWTH | 18 |
|
25 |
|
51 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 10 |
|
50 |
|
38 |
|
42 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
69 |
|
23 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
33 |
|
22 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 24 (worse than 76% compared with investment alternatives), FLSmidth (Heavy Machinery, Denmark) shares have lower financial characteristics compared with similar stocks. Shares of FLSmidth are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives), and are riskily financed (Safety Rank of 42, which means above-average debt burdens) but show above-average growth (Growth Rank of 57). ...read more
RECOMMENDATION: A Combined Rank of 24, is a sell recommendation based on FLSmidth's financial characteristics. As the company FLSmidth shows low value with an Obermatt Value Rank of 23 (77% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 57% of comparable companies (Obermatt Growth Rank is 57). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 42 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for FLSmidth, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 65 |
|
45 |
|
41 |
|
23 |
|
| GROWTH | ||||||||
| GROWTH | 18 |
|
25 |
|
51 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 10 |
|
50 |
|
38 |
|
42 |
|
| COMBINED | ||||||||
| COMBINED | 18 |
|
10 |
|
28 |
|
24 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 23 (worse than 77% compared with alternatives), FLSmidth shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for FLSmidth. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 53% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 26 which means that the stock price compared with what market professionals expect for future profits is higher than 74% of comparable companies, indicating a low value concerning FLSmidth's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 25 which means that the stock price compared with what market professionals expect for future profit levels is higher than 75% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34 is also low. Compared with invested capital, the stock price is higher than for 66% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 23, is a sell recommendation based on FLSmidth's stock price compared with the company's operational size and dividend yields. Should dividend investors pick FLSmidth? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose FLSmidth only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 79 |
|
61 |
|
42 |
|
26 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 32 |
|
27 |
|
35 |
|
25 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 72 |
|
79 |
|
46 |
|
34 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 51 |
|
47 |
|
60 |
|
53 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 65 |
|
45 |
|
41 |
|
23 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), FLSmidth 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 FLSmidth. Profit Growth has a rank of 90, which means that currently professionals expect the company to grow its profits more than 90% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has a below the median rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Capital Growth also has a lower rank of 9. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for FLSmidth. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 17 |
|
72 |
|
16 |
|
19 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 30 |
|
67 |
|
94 |
|
90 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
1 |
|
25 |
|
9 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 64 |
|
21 |
|
73 |
|
73 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 18 |
|
25 |
|
51 |
|
57 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 42 (better than 42% compared with alternatives), the company FLSmidth 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 FLSmidth 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 FLSmidth and the other two below average. Leverage is at a rank of 66 meaning the company has a below-average debt-to-equity ratio. It has less debt than 66% of its competitors.Refinancing is at a rank of 29, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 71% of its competitors. Liquidity is at a rank of 47, meaning that the company generates less profit to service its debt than 53% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 42 (worse than 58% compared with alternatives), FLSmidth has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of FLSmidth are on the safer side. Investors may have a short-term debt challenge and liquidity issues with FLSmidth and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 18 |
|
56 |
|
62 |
|
66 |
|
| REFINANCING | ||||||||
| REFINANCING | 46 |
|
59 |
|
41 |
|
29 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 89 |
|
36 |
|
45 |
|
47 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 10 |
|
50 |
|
38 |
|
42 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
18 |
|
28 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
78 |
|
82 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
71 |
|
20 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
62 |
|
19 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
69 |
|
23 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for FLSmidth from November 14, 2024.
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