May 11, 2023
Top 10 Stock Nine Entertainment Hold Recommendation
How to read the 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.
Snapshot: Nine Entertainment – Top 10 Stock in Australian Securities Exchange Index ASX 100
Nine Entertainment is listed as a top 10 stock on May 11, 2023 in the market index ASX 100 because of its high performance in at least one of the Obermatt investment strategies. While half of the consolidated Obermatt Ranks exhibit above-average performance and professional market sentiment is positive, it may be a solid investment proposition, especially if it can be expected that growth recovers soon. Based on the Obermatt 360° Rank of 25 (25% performer), Obermatt assesses an overall hold recommendation for Nine Entertainment on May 11, 2023.
Snapshot: Obermatt Ranks
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
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° Assessment Nine Entertainment Hold
| 360 METRICS | May 11, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 71 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 5 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 34 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 57 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 25 |
|
||||||
ANALYSIS: With an Obermatt 360° Rank of 25 (better than 25% compared with alternatives), overall professional sentiment and engagement for the stock Nine Entertainment are below the industry average. The 360° Rank is based on consolidating four consolidated indicators, with half the metrics below and half above average for Nine Entertainment. The consolidated Value Rank has an attractive rank of 71, which means that the share price of Nine Entertainment is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 71% of alternative stocks in the same industry. 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 Growth Rank has a low rank of 5, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. The consolidated Safety Rank has a riskier rank of 34, meaning the company has a riskier financing structure than 66 comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more
RECOMMENDATION: With a 360° Rank of 25, Nine Entertainment is worse than 75% of all alternative stock investment opportunities based on the Obermatt Method. Half of the consolidated Obermatt Ranks exhibit above-average performance, but the other half are below market levels. The company enjoys a good value (Value Rank of 71) and positive market sentiment in the professional investor community (Sentiment Rank of 57), but growth expectations are below-average (Growth Rank of 5) and the financing structure is on the risky side(Safety Rank of 34). This combination is rather dangerous, because high debt levels (low safety) require growth to finance the debt burden. The current low growth level may be temporary, because professionals are actually optimistic (high sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. Companies with less growth typically have a lower price than fast-growing competitors. Even though professional investor sentiment is strong, we recommend further evaluating whether the future of Nine Entertainment is as challenging as the stock's low price suggests. Since the professional community is optimistic, the stock might just be going through a more challenging phase now, indicating that timing might be good now. ...read more
Sentiment Strategy: Professional Market Sentiment for Nine Entertainment positive
ANALYSIS: With an Obermatt Sentiment Rank of 57 (better than 57% compared with alternatives), overall professional sentiment and engagement for the stock Nine Entertainment is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and half above average for Nine Entertainment. Analyst Opinions are at a rank of 60 (better than 60% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. Market Pulse is also positive with a rank of 69, which means that the current professional news and professional social networks are positive when discussing this company (more positive news than for 69% of competitors). But Analyst Opinions Change is negative with a rank of 43, which means that stock research experts are changing their opinions for the worse in recommending the company. In other words, they are getting more critical of investments in Nine Entertainment. There are also only so many institutional investors holding company stock with a Professional Investors rank of 47, which means that, currently, professional investors hold less stock in this company than in 53% of alternative investment opportunities. Pros tend to invest in other companies. ...read more
RECOMMENDATION: With an Obermatt Sentiment Rank of 57 (more positive than 57% compared with investment alternatives), Nine Entertainment has a reputation among professional investors that is above-average compared with that of its competitors. The signals are ambivalent. The positive news in the market contradicts the negative change in analyst recommendations. Since the overall analyst recommendations are still above average, the stock may be safer for investing, especially if it is not an extra-large company where Pros tend to be less present. In such a case, the Pro Investor rank is not a problem. ...read more
Value Strategy: Nine Entertainment Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 71 (better than 71% compared with alternatives), Nine Entertainment shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Nine Entertainment. Price-to-Sales has a value of 63 which means that the stock price compared with what market professionals expect for future sales is lower than 63% of comparable companies, indicating a good value for Nine Entertainment's revenue size. The same is valid for expected Price-to-Profits, more favorable than 74% of alternatives, and it is also true for the Price-to-Book capital (also referred to as market-to-book ratio) with an Obermatt Price-to-Capital Rank of 51. Compared with other companies in the same industry, dividend yields of Nine Entertainment are expected to be higher than 87% of all competitors (an Obermatt Dividend Yield rank of 87). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 71, is a BUY recommendation based on Nine Entertainment's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Nine Entertainment based on its detailed value metrics.
Growth Strategy: Nine Entertainment Growth Momentum negative
ANALYSIS: With an Obermatt Growth Rank of 5 (better than 5% compared with alternatives), Nine Entertainment shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Nine Entertainment. Sales Growth has a rank of 35, which means that currently professionals expect the company to grow less than 65% of its competitors. The same is valid for Profit Growth, with a rank of 11, and Capital Growth with 27. In addition, Stock Returns have a below market rank of 35, which means that the stock returns have recently been below 65% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 5, is a SELL recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's prospects, especially Sentiment performance, because it may be a turnaround situation that could entail above-average returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. ...read more
Safety Strategy: Nine Entertainment Debt Financing Safety below-average
| SAFETY METRICS | May 11, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 36 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 35 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 58 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 34 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company Nine Entertainment 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 Nine Entertainment 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 Nine Entertainment. 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 35, 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 65% of its competitors. Leverage is also high at a rank of 36, which means that the company has an above-average debt-to-equity ratio. It has more debt than 64% of its competitors. ...read more
RECOMMENDATION: With an Obermatt Safety Rank of 34 (worse than 66% compared with alternatives), Nine Entertainment 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 usuallyl 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. ...read more
Combined financial peformance: Nine Entertainment Lowest Financial Performance
| COMBINED PERFORMANCE | May 11, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 71 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 5 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 58 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 14 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), Nine Entertainment (Broadcasting, Australia) shares have lower financial characteristics compared with similar stocks. Shares of Nine Entertainment are a good value (attractively priced) with a consolidated Obermatt Value Rank of 71 (better than 71% of alternatives) but show below-average growth (Growth Rank of 5), and are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more
RECOMMENDATION: An Obermatt Combined Rank of 14, is a sell recommendation based on Nine Entertainment's financial characteristics. As the company Nine Entertainment's key financial metrics exhibit good value (Obermatt Value Rank of 71) but low growth (Obermatt Growth Rank of 5) and risky financing practices (Obermatt Safety Rank of 34), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 71% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.