September 19, 2024
Top 10 Stock KWS Saat 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 KWS Saat Buy

360 METRICS	September 19, 2024
VALUE
VALUE	41
GROWTH
GROWTH	89
SAFETY
SAFETY	54
SENTIMENT
SENTIMENT	57
360° VIEW
360° VIEW	74

ANALYSIS: With an Obermatt 360° View of 74 (better than 74% compared with alternatives), overall professional sentiment and financial characteristics for the stock KWS Saat are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for KWS Saat. The consolidated Growth Rank has a good rank of 89, 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 89% of competitors in the same industry. The consolidated Safety Rank at 54 means that the company has a financing structure that is safer than 54% 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 57, which means that professional investors are more optimistic about the stock than for 57% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 41, meaning that the share price of KWS Saat is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 59% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 74, KWS Saat is better positioned than 74% 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 89), a safe financing structure (Safety Rank of 54), and positive professional market sentiment (Sentiment Rank of 57), 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 KWS Saat compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (89% better than peers). The value rank could be the reverse reflection of that (11%). 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 KWS Saat positive

SENTIMENT METRICS	September 19, 2024
ANALYST OPINION
ANALYST OPINION	93
OPINIONS CHANGE
OPINIONS CHANGE	27
PRO HOLDINGS
PRO HOLDINGS	63
MARKET PULSE
MARKET PULSE	30
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	57

ANALYSIS: With an Obermatt Sentiment Rank of 57 (better than 57% compared with alternatives), overall professional sentiment and engagement for the stock KWS Saat is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and the other half above average for KWS Saat. Analyst Opinions are at a rank of 93 (better than 93% of alternative investments). Currently, stock research analysts tend to recommend a stock investment in the company. There are also many institutional investors invested in the stock, represented by a Professional Investors rank of 63 which means that currently, professional investors hold more stock in this company than in 63% of alternative investment opportunities. But Analyst Opinions Change has a rank of 27, which means that stock research experts are changing their opinions for the worse in recommending investing in the company. In other words, they are getting more critical of investments in KWS Saat. Furthermore, Market Pulse has a rank of 30, 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 70% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 57 (more positive than 57% compared with investment alternatives), KWS Saat has a reputation among professional investors that is above-average compared with that of its competitors. Three below-market sentiment indicators are a sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it may be around the corner. ...read more

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Value Strategy: KWS Saat Stock Price Value below-average critical

VALUE METRICS	September 19, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	42
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	73
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	60
DIVIDEND YIELD
DIVIDEND YIELD	18
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	41

ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), KWS Saat shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for KWS Saat. Price-to-Profit (also referred to as price-earnings, P/E) is 73 which means that the stock price compared with what market professionals expect for future profits is lower than for 73% of comparable companies, indicating a good value concerning KWS Saat's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 60, which means that the stock price is lower as regards to invested capital than for 60% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 58% of alternatives (only 42% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 82% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on KWS Saat's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. ...read more

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Growth Strategy: KWS Saat Growth Momentum high

GROWTH METRICS	September 19, 2024
REVENUE GROWTH
REVENUE GROWTH	17
PROFIT GROWTH
PROFIT GROWTH	94
CAPITAL GROWTH
CAPITAL GROWTH	82
STOCK RETURNS
STOCK RETURNS	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	89

ANALYSIS: With an Obermatt Growth Rank of 89 (better than 89% compared with alternatives) for 2024, KWS Saat 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 KWS Saat. Profit Growth has a rank of 94 which means that currently professionals expect the company to grow its profits more than 94% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 82, and Stock Returns has a rank of 69 which means that the stock returns have recently been above 69% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 17 (83% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 89, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. ...read more

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Safety Strategy: KWS Saat Debt Financing Safety above-average

SAFETY METRICS	September 19, 2024
LEVERAGE
LEVERAGE	43
REFINANCING
REFINANCING	78
LIQUIDITY
LIQUIDITY	46
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	54

ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company KWS Saat 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 KWS Saat 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 KWS Saat and the other two below average. Refinancing is at 78, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 78% of its competitors. But Leverage is high with a rank of 43, meaning the company has an above-average debt-to-equity ratio. It has more debt than 57% of its competitors. Liquidity is also on the riskier side with a rank of 46, meaning the company generates less profit to service its debt than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), KWS Saat has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for KWS Saat are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. ...read more

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Combined financial peformance: KWS Saat Above-Average Financial Performance

COMBINED PERFORMANCE	September 19, 2024
VALUE
VALUE	41
GROWTH
GROWTH	89
SAFETY
SAFETY	46
COMBINED
COMBINED	72

ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), KWS Saat (Agricultural Products, Germany) shares have above-average financial characteristics compared with similar stocks. Shares of KWS Saat are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives). But they show above-average growth (Growth Rank of 89) and are safely financed (Safety Rank of 54, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on KWS Saat's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company KWS Saat exhibits low value (Obermatt Value Rank of 41), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 89). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 54) 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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