June 15, 2023
Top 10 Stock H. Lundbeck Strong 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: H. Lundbeck – Top 10 Stock in OMX Copenhagen 20
H. Lundbeck is listed as a top 10 stock on June 15, 2023 in the market index OMX C20 because of its high performance in at least one of the Obermatt investment strategies. Based on the Obermatt 360° View of 85 (top 85% performer), Obermatt assesses an overall strong buy recommendation for H. Lundbeck on June 15, 2023.
Snapshot: Obermatt Ranks
| Country | Denmark |
| Industry | Pharmaceuticals |
| Index | OMX C20, Renewables Users |
| Size class | Large |
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 H. Lundbeck Strong Buy
| 360 METRICS | June 15, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 81 |
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| GROWTH | ||||||||
| GROWTH | 49 |
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| SAFETY | ||||||||
| SAFETY | 72 |
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| SENTIMENT | ||||||||
| SENTIMENT | n/a |
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| 360° VIEW | ||||||||
| 360° VIEW | 85 |
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ANALYSIS: With an Obermatt 360° View of 85 (better than 85% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock H. Lundbeck are very positive.
RECOMMENDATION: With a 360° View of 85, H. Lundbeck is better positioned than 85% of all alternative stock investment opportunities based on the Obermatt Method.
Sentiment Strategy: n/a
ANALYSIS:
RECOMMENDATION:
Value Strategy: H. Lundbeck Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 81 (better than 81% compared with alternatives) for 2023, H. Lundbeck shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for H. Lundbeck. Price-to-Sales is 66 which means that the stock price compared with what market professionals expect for future sales is lower than for 66% of comparable companies, indicating a good value for H. Lundbeck's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 81% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 71. Compared with other companies in the same industry, dividend yields of H. Lundbeck are expected to be higher than for 67% of all competitors (a Dividend Yield rank of 67). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 81, is a strong buy recommendation based on H. Lundbeck's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in H. Lundbeck based on its detailed value metrics.
Growth Strategy: H. Lundbeck Growth Momentum low
ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), H. Lundbeck shows a below-average growth dynamic in its industry. There is limited momentum in this company.
RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a HOLD recommendation for growth and momentum investors.
Safety Strategy: H. Lundbeck Debt Financing Safety above-average
| SAFETY METRICS | June 15, 2023 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 61 |
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| REFINANCING | ||||||||
| REFINANCING | 45 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 65 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 72 |
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ANALYSIS: With an Obermatt Safety Rank of 72 (better than 72% compared with alternatives), the company H. Lundbeck has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of H. Lundbeck 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, with two out of three indicators above average for H. Lundbeck. Leverage is at a rank of 61, meaning the company has a below-average debt-to-equity ratio. It has less debt than 61% of its competitors. Liquidity is also good at a rank of 65, meaning the company generates more profit to service its debt than 65% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 45, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 55% of its competitors. ...read more
RECOMMENDATION: With an Obermatt Safety Rank of 72 (better than 72% compared with alternatives), H. Lundbeck has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for H. Lundbeck. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more
Combined financial peformance: H. Lundbeck Top Financial Performance
| COMBINED PERFORMANCE | June 15, 2023 | |||||||
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| VALUE | ||||||||
| VALUE | 81 |
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| GROWTH | ||||||||
| GROWTH | 49 |
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| SAFETY | ||||||||
| SAFETY | 65 |
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| COMBINED | ||||||||
| COMBINED | 84 |
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ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), H. Lundbeck (Pharmaceuticals, Denmark) shares have much better financial characteristics than comparable stocks. Shares of H. Lundbeck are a good value (attractively priced) with a consolidated Obermatt Value Rank of 81 (better than 81% of alternatives), are safely financed (Safety Rank of 72, which means low debt burdens), but show below-average growth (Growth Rank of 49). ...read more
RECOMMENDATION: An Obermatt Combined Rank of 84, is a strong buy recommendation based on H. Lundbeck's financial characteristics. As the company H. Lundbeck's key financial metrics exhibit good value (Obermatt Value Rank of 81) but low growth (Obermatt Growth Rank of 49) while being safely financed (Obermatt Safety Rank of 72), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 81% 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
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