Fact based stock research
Keywords Studios (AIM:KWS)

GB00BBQ38507

How to read the free 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.

Keywords Studios stock research in summary

keywordsstudios.com

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Keywords Studios (IT Consulting & oth. Services, Ireland) shares have much better financial characteristics than comparable stocks. Shares of Keywords Studios are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 93) and are safely financed (Safety Rank of 53, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Keywords Studios's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Keywords Studios exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 93). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 53) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	45
Growth Rank	93
Safety Rank	53
Combined Rank	90

Country	Ireland
Industry	IT Consulting & oth. Services
Index
Size class	Medium

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

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: Keywords Studios

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	16	35	77	45
GROWTH
GROWTH	71	83	9	93
SAFETY
SAFETY	55	63	70	53
SENTIMENT
SENTIMENT	n/a	53	35	^new
360° VIEW
360° VIEW	n/a	73	38	^new

Most recent update of the stock research: 31-Oct-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 Keywords Studios is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	16	35	77	45
GROWTH
GROWTH	71	83	9	93
SAFETY
SAFETY	55	63	70	53
COMBINED
COMBINED	59	77	60	90

Last update of combined financial performance: 31-Oct-2024. Stock analysis on combined financial performance: The higher the rank of Keywords Studios the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Keywords Studios 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 Keywords Studios. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 55% 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 29 which means that the stock price compared with what market professionals expect for future profits is higher than 71% of comparable companies, indicating a low value concerning Keywords Studios's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 24 which means that the stock price compared with what market professionals expect for future profit levels is higher than 76% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 25 is also low. Compared with invested capital, the stock price is higher than for 75% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Keywords Studios's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Keywords Studios? 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 Keywords Studios 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)	26	38	58	29
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	51	27	57	24
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	12	28	56	25
DIVIDEND YIELD
DIVIDEND YIELD	62	53	55	55
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	16	35	77	45

Last update of Value Rank: 31-Oct-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Keywords Studios; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, Keywords Studios shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Keywords Studios. Sales Growth has a rank of 89 which means that currently, professionals expect the company to grow more than 89% of its competitors. Capital Growth is also above 34% of competitors with a rank of 100, and Stock Returns with the rank of 87 is also an outperformance. Only Profit Growth is low with a rank of 34 which means that currently, professionals expect the company to grow its profits less than 66% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Keywords Studios is a good growth stock. 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. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	66	54	70	89
PROFIT GROWTH
PROFIT GROWTH	n/a	60	16	34
CAPITAL GROWTH
CAPITAL GROWTH	n/a	81	18	100
STOCK RETURNS
STOCK RETURNS	50	51	11	87
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	71	83	9	93

Last update of Growth Rank: 31-Oct-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Keywords Studios.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 53 (better than 53% compared with alternatives), the company Keywords Studios 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 Keywords Studios 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 just one indicator above average for Keywords Studios. Liquidity is at 62, meaning the company generates more profit to service its debt than 62% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 33, 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 67% of its competitors. Leverage is also high at a rank of 46, which means that the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 53 (better than 53% compared with alternatives), Keywords Studios has a financing structure that is safer 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	42	69	76	46
REFINANCING
REFINANCING	44	31	33	33
LIQUIDITY
LIQUIDITY	81	66	78	62
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	55	63	70	53

Last update of Safety Rank: 31-Oct-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Keywords Studios 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	69	81	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	61	11	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	12	30	^new
MARKET PULSE
MARKET PULSE	n/a	62	49	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	53	35	^new

Last update of Sentiment Rank: 24-Oct-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Keywords Studios.
Upgrade to a Premium Account to access the latest ranks.