Fact based stock research
Inversiones Aguas Metropolitanas (SNSE:IAM)

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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.

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Inversiones Aguas Metropolitanas stock research in summary

iam.cl

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% compared with investment alternatives), Inversiones Aguas Metropolitanas (Water Utilities, Chile) shares have above-average financial characteristics compared with similar stocks. Shares of Inversiones Aguas Metropolitanas are a good value (attractively priced) with a consolidated Value Rank of 66 (better than 66% of alternatives), show above-average growth (Growth Rank of 58) but are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on Inversiones Aguas Metropolitanas's financial characteristics. As the company Inversiones Aguas Metropolitanas's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 66) and above-average growth (Obermatt Growth Rank of 58), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 30) 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. 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	66
Growth Rank	58
Safety Rank	30
Combined Rank	50

Country	Chile
Industry	Water Utilities
Index	IPSA
Size class	Medium

This stock has achievements: Top 10 Stock.

19-Dec-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: Inversiones Aguas Metropolitanas

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	50	59	66
GROWTH
GROWTH	6	13	99	58
SAFETY
SAFETY	4	43	35	30
SENTIMENT
SENTIMENT	n/a	84	43	^new
360° VIEW
360° VIEW	n/a	40	72	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Inversiones Aguas Metropolitanas is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	50	59	66
GROWTH
GROWTH	6	13	99	58
SAFETY
SAFETY	4	43	35	30
COMBINED
COMBINED	21	14	82	50

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Inversiones Aguas Metropolitanas the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 66 (better than 66% compared with alternatives), Inversiones Aguas Metropolitanas shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Inversiones Aguas Metropolitanas. Price-to-Sales (P/S) is 54 which means that the stock price compared with what market professionals expect for future sales is lower than for 54% of comparable companies, indicating a good value for Inversiones Aguas Metropolitanas's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 65. Finally, compared with other companies in the same industry, dividend yields of Inversiones Aguas Metropolitanas are expected to be higher than for 100% of all competitors (a Dividend Yield rank of 100). The only low rank is for expected profits with a Price-to-Profit Rank of 42, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 66, is a buy recommendation based on Inversiones Aguas Metropolitanas's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76	63	54	54
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	58	46	41	42
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	92	1	35	65
DIVIDEND YIELD
DIVIDEND YIELD	91	96	96	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	100	50	59	66

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Inversiones Aguas Metropolitanas; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 58 (better than 58% compared with alternatives), Inversiones Aguas Metropolitanas 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 Inversiones Aguas Metropolitanas. Sales Growth has a rank of 76 which means that currently professionals expect the company to grow more than 76% of its competitors. Stock Returns are also above average with a rank of 62. But Capital Growth has only a rank of 33, which means that currently professionals expect the company to grow its invested capital less than 67% of its competitors. Profit Growth is also low, with a rank of only 25, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 58, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 62% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. 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	11	41	75	76
PROFIT GROWTH
PROFIT GROWTH	n/a	30	80	25
CAPITAL GROWTH
CAPITAL GROWTH	n/a	10	61	33
STOCK RETURNS
STOCK RETURNS	6	43	77	62
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	6	13	99	58

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Inversiones Aguas Metropolitanas.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Inversiones Aguas Metropolitanas 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 Inversiones Aguas Metropolitanas 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 Inversiones Aguas Metropolitanas. Liquidity is at 58, meaning the company generates more profit to service its debt than 58% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 10, 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 90% of its competitors. Leverage is also high at a rank of 47, which means that the company has an above-average debt-to-equity ratio. It has more debt than 53% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Inversiones Aguas Metropolitanas has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	2	38	36	47
REFINANCING
REFINANCING	6	45	9	10
LIQUIDITY
LIQUIDITY	23	61	69	58
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	4	43	35	30

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Inversiones Aguas Metropolitanas 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	74	55	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	78	34	^new
MARKET PULSE
MARKET PULSE	n/a	n/a	n/a	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	84	43	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Inversiones Aguas Metropolitanas.
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