Fact based stock research
Northam Platinum (JSE:NHM)

ZAE000298253

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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.

Northam Platinum stock research in summary

northam.co.za

ANALYSIS: With an Obermatt Combined Rank of 54 (better than 54% compared with investment alternatives), Northam Platinum (Precious Metals & Minerals, South Africa) shares have above-average financial characteristics compared with similar stocks. Shares of Northam Platinum are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), show above-average growth (Growth Rank of 77) but are riskily financed (Safety Rank of 36), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 54, is a buy recommendation based on Northam Platinum's financial characteristics. As the company Northam Platinum's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 51) and above-average growth (Obermatt Growth Rank of 77), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 36) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	51
Growth Rank	77
Safety Rank	36
Combined Rank	54

Country	South Africa
Industry	Precious Metals & Minerals
Index	Good Governace Growth Markets, Human Rights, JSE All Shares
Size class	Large

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

Further information

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

Research History: Northam Platinum

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	37	59	66	51
GROWTH
GROWTH	43	59	43	77
SAFETY
SAFETY	59	25	25	36
SENTIMENT
SENTIMENT	n/a	47	55	^new
360° VIEW
360° VIEW	n/a	39	47	^new

Most recent update of the stock research: 14-Nov-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 Northam Platinum is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	37	59	66	51
GROWTH
GROWTH	43	59	43	77
SAFETY
SAFETY	59	25	25	36
COMBINED
COMBINED	78	43	34	54

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Northam Platinum the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), Northam Platinum 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 Northam Platinum. Price-to-Sales is 56 which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value for Northam Platinum's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 62% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 60. Compared with other companies in the same industry, dividend yields of Northam Platinum are expected to be higher than for 54% of all competitors (a Dividend Yield rank of 54). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on Northam Platinum'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 Northam Platinum based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	58	45	55	56
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	87	83	74	62
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	18	43	61	60
DIVIDEND YIELD
DIVIDEND YIELD	1	74	67	54
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	37	59	66	51

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Northam Platinum; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 77 (better than 77% compared with alternatives) for 2024, Northam Platinum 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 half of the indicators below and half above average for Northam Platinum. Sales Growth has a rank of 85, which means that, currently, professionals expect the company to grow more than 85% of its competitors. Profit Growth with a rank of 81 is also above average. But Capital Growth has only a rank of 45, and Stock Returns with 49 are also below-average. Stock returns for Northam Platinum have recently been below 51% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 77, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Northam Platinum. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. 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 the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	58	81	81	85
PROFIT GROWTH
PROFIT GROWTH	62	37	30	81
CAPITAL GROWTH
CAPITAL GROWTH	n/a	62	50	45
STOCK RETURNS
STOCK RETURNS	12	31	23	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	43	59	43	77

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Northam Platinum.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 36 (better than 36% compared with alternatives), the company Northam Platinum 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 Northam Platinum 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 Northam Platinum and the other two below average. Refinancing is at 59, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. But Leverage is high with a rank of 48, meaning the company has an above-average debt-to-equity ratio. It has more debt than 52% of its competitors. Liquidity is also on the riskier side with a rank of 26, meaning the company generates less profit to service its debt than 74% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 36 (worse than 64% compared with alternatives), Northam Platinum has a financing structure that is riskier 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 Northam Platinum 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. In the long-term, investors may have a debt challenge with Northam Platinum and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	22	36	32	48
REFINANCING
REFINANCING	66	11	35	59
LIQUIDITY
LIQUIDITY	53	62	46	26
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	59	25	25	36

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Northam Platinum 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	61	56	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	9	20	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	76	51	^new
MARKET PULSE
MARKET PULSE	n/a	40	81	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	47	55	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Northam Platinum.
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