November 28, 2024
Top 10 Stock Nepi Rockcastle 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 Nepi Rockcastle Strong Buy

360 METRICS	November 28, 2024
VALUE
VALUE	37
GROWTH
GROWTH	80
SAFETY
SAFETY	88
SENTIMENT
SENTIMENT	90
360° VIEW
360° VIEW	96

ANALYSIS: With an Obermatt 360° View of 96 (better than 96% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Nepi Rockcastle are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Nepi Rockcastle. The consolidated Growth Rank has a good rank of 80, 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 80% of competitors in the same industry. The consolidated Safety Rank at 88 means that the company has a financing structure that is safer than 88% 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 90, which means that professional investors are more optimistic about the stock than for 90% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 37, meaning that the share price of Nepi Rockcastle is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 63% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 96, Nepi Rockcastle is better positioned than 96% 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 80), a safe financing structure (Safety Rank of 88), and positive professional market sentiment (Sentiment Rank of 90), 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 Nepi Rockcastle compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (80% better than peers). The value rank could be the reverse reflection of that (20%). 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 Nepi Rockcastle very positive

SENTIMENT METRICS	November 28, 2024
ANALYST OPINION
ANALYST OPINION	31
OPINIONS CHANGE
OPINIONS CHANGE	56
PRO HOLDINGS
PRO HOLDINGS	98
MARKET PULSE
MARKET PULSE	97
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	90

ANALYSIS: With an Obermatt Sentiment Rank of 90 (better than 90% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock Nepi Rockcastle is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Nepi Rockcastle. Analyst Opinions are at a rank of 31 (worse than 69% 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 56, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Nepi Rockcastle. Even better, the Professional Investors rank is 98, meaning that professional investors hold more stock in this company than in 98% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 97, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 97% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 90 (more positive than 90% compared with investment alternatives), Nepi Rockcastle has a reputation among professional investors that is significantly higher than that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: Nepi Rockcastle Stock Price Value below-average critical

VALUE METRICS	November 28, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	57
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	10
DIVIDEND YIELD
DIVIDEND YIELD	98
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	37

ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), Nepi Rockcastle 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 Nepi Rockcastle. Price-to-Profit (also referred to as price-earnings, P/E) is 57 which means that the stock price compared with what market professionals expect for future profits is lower than for 57% of comparable companies, indicating a good value concerning Nepi Rockcastle'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 10, which means that the stock price is lower as regards to invested capital than for 10% of comparable investments. On the other hand, Price-to-Sales is less favorable than 89% of alternatives (only 11% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 2% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on Nepi Rockcastle'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 in respect to expected revenues, it means that 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 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 pay it out to shareholders, 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: Nepi Rockcastle Growth Momentum high

GROWTH METRICS	November 28, 2024
REVENUE GROWTH
REVENUE GROWTH	74
PROFIT GROWTH
PROFIT GROWTH	57
CAPITAL GROWTH
CAPITAL GROWTH	32
STOCK RETURNS
STOCK RETURNS	85
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	80

ANALYSIS: With an Obermatt Growth Rank of 80 (better than 80% compared with alternatives) for 2024, Nepi Rockcastle 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 Nepi Rockcastle. Sales Growth has a rank of 74 which means that currently, professionals expect the company to grow more than 74% of its competitors. Both Profit Growth, with a rank of 57, and Stock Returns, with a rank of 85, are also above average. But Capital Growth only has a rank of 32, which means that, currently, professionals expect the company to grow its invested capital less than 68% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 80, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. ...read more

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Safety Strategy: Nepi Rockcastle Debt Financing Safety very solid

SAFETY METRICS	November 28, 2024
LEVERAGE
LEVERAGE	81
REFINANCING
REFINANCING	62
LIQUIDITY
LIQUIDITY	88
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88

ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company Nepi Rockcastle has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Nepi Rockcastle 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 Nepi Rockcastle. Leverage is at 81, meaning the company has a below-average debt-to-equity ratio. It has less debt than 81% of its competitors. Refinancing is at a rank of 62, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 62% of its competitors. Finally, Liquidity is also good at a rank of 88, which means that the company generates more profit to service its debt than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 88 (better than 88% compared with alternatives), Nepi Rockcastle 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: Nepi Rockcastle Top Financial Performance

COMBINED PERFORMANCE	November 28, 2024
VALUE
VALUE	37
GROWTH
GROWTH	80
SAFETY
SAFETY	88
COMBINED
COMBINED	84

ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), Nepi Rockcastle (Real Estate: Operating Services, Isle of Man) shares have much better financial characteristics than comparable stocks. Shares of Nepi Rockcastle are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives). But they show above-average growth (Growth Rank of 80) and are safely financed (Safety Rank of 88, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on Nepi Rockcastle's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Nepi Rockcastle exhibits low value (Obermatt Value Rank of 37), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 80). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 88) 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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