November 21, 2024
Top 10 Stock Kinden Strong Buy Recommendation

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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 Kinden Strong Buy

360 METRICS	November 21, 2024
VALUE
VALUE	25
GROWTH
GROWTH	73
SAFETY
SAFETY	94
SENTIMENT
SENTIMENT	76
360° VIEW
360° VIEW	88

ANALYSIS: With an Obermatt 360° View of 88 (better than 88% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Kinden are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Kinden. The consolidated Growth Rank has a good rank of 73, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 73% of competitors in the same industry. The consolidated Safety Rank at 94 means that the company has a financing structure that is safer than 94% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 76, which means that professional investors are more optimistic about the stock than for 76% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 25, meaning that the share price of Kinden is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 75% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 88, Kinden is better positioned than 88% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 73), a safe financing structure (Safety Rank of 94), and positive professional market sentiment (Sentiment Rank of 76), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Kinden compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (73% better than peers). The value rank could be the reverse reflection of that (27%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Kinden very positive

SENTIMENT METRICS	November 21, 2024
ANALYST OPINION
ANALYST OPINION	19
OPINIONS CHANGE
OPINIONS CHANGE	76
PRO HOLDINGS
PRO HOLDINGS	89
MARKET PULSE
MARKET PULSE	49
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	76

ANALYSIS: With an Obermatt Sentiment Rank of 76 (better than 76% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock Kinden is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Kinden. Analyst Opinions are at a rank of 19 (worse than 81% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 76, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Kinden. More encouragingly, the Professional Investors rank is 89, which means that professional investors hold more stock in this company than in 89% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 49, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 51% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 76 (more positive than 76% compared with investment alternatives), Kinden has a reputation among professional investors that is significantly higher than that of its competitors. The sentiment signals are mixed for Kinden. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: Kinden Stock Price Value below-average critical

VALUE METRICS	November 21, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	37
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	34
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	62
DIVIDEND YIELD
DIVIDEND YIELD	41
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	25

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Kinden shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Kinden. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 62, which means that the stock price is lower compared with invested capital than for 62% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 37 which means the stock price compared with what market professionals expect for future profits is higher than 63% of comparable companies, indicating a low value concerning Kinden's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 62 and for the dividend yields rank which is lower than for 59% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Kinden's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Kinden, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. ...read more

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Growth Strategy: Kinden Growth Momentum good

GROWTH METRICS	November 21, 2024
REVENUE GROWTH
REVENUE GROWTH	32
PROFIT GROWTH
PROFIT GROWTH	38
CAPITAL GROWTH
CAPITAL GROWTH	94
STOCK RETURNS
STOCK RETURNS	75
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	73

ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Kinden 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 Kinden. Capital Growth has a rank of 94, which means that currently professionals expect the company to grow its invested capital more than 38% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 75 (above 75% of alternative investments). But Sales Growth has only a rank of 32, which means that, currently, professionals expect the company to grow less than 68% of its competitors, and Profit Growth is also low at a rank of 38. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Kinden, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. ...read more

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Safety Strategy: Kinden Debt Financing Safety very solid

SAFETY METRICS	November 21, 2024
LEVERAGE
LEVERAGE	86
REFINANCING
REFINANCING	69
LIQUIDITY
LIQUIDITY	94
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	94

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2024, the company Kinden has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Kinden 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, where all three are above average for Kinden. Leverage is at 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Refinancing is at a rank of 69, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 69% of its competitors. Finally, Liquidity is also good at a rank of 94, which means that the company generates more profit to service its debt than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Kinden has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Kinden Above-Average Financial Performance

COMBINED PERFORMANCE	November 21, 2024
VALUE
VALUE	25
GROWTH
GROWTH	73
SAFETY
SAFETY	94
COMBINED
COMBINED	65

ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), Kinden (Construction & Engineering, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Kinden are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives). But they show above-average growth (Growth Rank of 73) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on Kinden's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Kinden exhibits low value (Obermatt Value Rank of 25), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 73). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) 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). ...read more

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