Fact based stock research
Fundamenta Real Estate (SWX:FREN)

CH0045825517

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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.

Fundamenta Real Estate stock research in summary

fundamentarealestate.ch

ANALYSIS: With an Obermatt Combined Rank of 30 (worse than 70% compared with investment alternatives), Fundamenta Real Estate (Real Estate: Operating Services, Switzerland) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Fundamenta Real Estate are low in value (priced high) with a consolidated Value Rank of 32 (worse than 68% of alternatives), show below-average growth (Growth Rank of 37), and are riskily financed (Safety Rank of 45), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 30, is a hold recommendation based on Fundamenta Real Estate's financial characteristics. As the company Fundamenta Real Estate's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 32), low growth (Obermatt Growth Rank of 37), and risky financing practices (Obermatt Safety Rank of 45), 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. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	32
Growth Rank	37
Safety Rank	45
Combined Rank	30

Country	Switzerland
Industry	Real Estate: Operating Services
Index	R/E Europe, SPI
Size class	X-Small

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Fundamenta Real Estate

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	37	24	20	32
GROWTH
GROWTH	52	43	73	37
SAFETY
SAFETY	2	9	49	45
SENTIMENT
SENTIMENT	n/a	1	40	^new
360° VIEW
360° VIEW	n/a	1	37	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Fundamenta Real Estate is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	37	24	20	32
GROWTH
GROWTH	52	43	73	37
SAFETY
SAFETY	2	9	49	45
COMBINED
COMBINED	26	6	40	30

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Fundamenta Real Estate the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 32 (worse than 68% compared with alternatives), Fundamenta Real Estate shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Fundamenta Real Estate. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 75% 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 Fundamenta Real Estate's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 17 which means that the stock price compared with what market professionals expect for future profit levels is higher than 83% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 32 is also low. Compared with invested capital, the stock price is higher than for 68% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 32, is a hold recommendation based on Fundamenta Real Estate's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Fundamenta Real Estate? 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 Fundamenta Real Estate 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)	11	24	16	26
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	48	15	17	17
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	40	43	34	32
DIVIDEND YIELD
DIVIDEND YIELD	72	57	61	75
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	37	24	20	32

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Fundamenta Real Estate; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), Fundamenta Real Estate 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, where half of the indicators are below and half above average for Fundamenta Real Estate. Profit Growth, with a rank of 96 (better than 96% of its competitors), and Capital Growth, with a rank of 65, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 9, which means that, currently, professionals expect the company to grow less than 91% of its competitors, and Stock Returns are at a rank of 21. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. 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	49	20	73	9
PROFIT GROWTH
PROFIT GROWTH	n/a	9	40	96
CAPITAL GROWTH
CAPITAL GROWTH	n/a	100	83	65
STOCK RETURNS
STOCK RETURNS	42	45	53	21
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	52	43	73	37

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Fundamenta Real Estate.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 45 (better than 45% compared with alternatives), the company Fundamenta Real Estate 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 Fundamenta Real Estate 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 two out of three indicators above-average for Fundamenta Real Estate. Refinancing is at 57, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 57% of its competitors. Liquidity is also good at 63, meaning the company generates more profit to service its debt than 63% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 24, which means the company has an above-average debt-to-equity ratio. It has more debt than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 45 (worse than 55% compared with alternatives), Fundamenta Real Estate has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Fundamenta Real Estate could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Fundamenta Real Estate 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	34	12	22	24
REFINANCING
REFINANCING	18	13	57	57
LIQUIDITY
LIQUIDITY	21	63	64	63
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	2	9	49	45

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Fundamenta Real Estate and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	22	37	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	2	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	38	45	^new
MARKET PULSE
MARKET PULSE	n/a	n/a	42	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	1	40	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Fundamenta Real Estate.
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