Fact based stock research
Channel Infrastructure NZ (NZSE:NZR)
NZNZRE0001S9
How to read the free 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.
Channel Infrastructure NZ stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 15 (worse than 85% compared with investment alternatives), Channel Infrastructure NZ (Oil & Gas Refining, New Zealand) shares have lower financial characteristics compared with similar stocks. Shares of Channel Infrastructure NZ are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives), show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 13), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 15, is a sell recommendation based on Channel Infrastructure NZ's financial characteristics. As the company Channel Infrastructure NZ's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 31), low growth (Obermatt Growth Rank of 45), and risky financing practices (Obermatt Safety Rank of 13), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | New Zealand |
| Industry | Oil & Gas Refining |
| Index | NZSX 50 |
| Size class | Small |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Channel Infrastructure NZ
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 33 |
|
59 |
|
45 |
|
31 |
|
| GROWTH | ||||||||
| GROWTH | 54 |
|
63 |
|
69 |
|
45 |
|
| SAFETY | ||||||||
| SAFETY | 19 |
|
24 |
|
14 |
|
13 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
14 |
|
37 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
23 |
|
32 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 15 (worse than 85% compared with investment alternatives), Channel Infrastructure NZ (Oil & Gas Refining, New Zealand) shares have lower financial characteristics compared with similar stocks. Shares of Channel Infrastructure NZ are low in value (priced high) with a consolidated Value Rank of 31 (worse than 69% of alternatives), show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 13), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 15, is a sell recommendation based on Channel Infrastructure NZ's financial characteristics. As the company Channel Infrastructure NZ's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 31), low growth (Obermatt Growth Rank of 45), and risky financing practices (Obermatt Safety Rank of 13), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 33 |
|
59 |
|
45 |
|
31 |
|
| GROWTH | ||||||||
| GROWTH | 54 |
|
63 |
|
69 |
|
45 |
|
| SAFETY | ||||||||
| SAFETY | 19 |
|
24 |
|
14 |
|
13 |
|
| COMBINED | ||||||||
| COMBINED | 1 |
|
44 |
|
41 |
|
15 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 31 (worse than 69% compared with alternatives), Channel Infrastructure NZ shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Channel Infrastructure NZ. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 96% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 9 which means that the stock price compared with what market professionals expect for future profits is higher than 91% of comparable companies, indicating a low value concerning Channel Infrastructure NZ's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 26 which means that the stock price compared with what market professionals expect for future profit levels is higher than 74% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 41 is also low. Compared with invested capital, the stock price is higher than for 59% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 31, is a hold recommendation based on Channel Infrastructure NZ's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Channel Infrastructure NZ? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Channel Infrastructure NZ only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 63 |
|
16 |
|
7 |
|
9 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 17 |
|
9 |
|
48 |
|
26 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 96 |
|
79 |
|
57 |
|
41 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
94 |
|
98 |
|
96 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 33 |
|
59 |
|
45 |
|
31 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Channel Infrastructure NZ shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Channel Infrastructure NZ. Profit Growth has a rank of 70, which means that currently professionals expect the company to grow its profits more than 70% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 85 (above 85% of alternative investments). But Sales Growth has a below the median rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Capital Growth also has a lower rank of 11. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Channel Infrastructure NZ. 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 Obermatt’s 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 | 10 |
|
10 |
|
71 |
|
19 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 50 |
|
66 |
|
92 |
|
70 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
55 |
|
9 |
|
11 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 88 |
|
97 |
|
49 |
|
85 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 54 |
|
63 |
|
69 |
|
45 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 13 (better than 13% compared with alternatives), the company Channel Infrastructure NZ has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Channel Infrastructure NZ 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 all three metrics below average for Channel Infrastructure NZ. Liquidity is at 29, meaning that the company generates less profit to service its debt than 71% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 34, meaning the company has an above-average debt-to-equity ratio. It has more debt than 66% of its competitors. Finally, Refinancing is at a rank of 11 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 89% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 13 (worse than 87% compared with alternatives), Channel Infrastructure NZ has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Channel Infrastructure NZ because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 33 |
|
50 |
|
42 |
|
34 |
|
| REFINANCING | ||||||||
| REFINANCING | 47 |
|
19 |
|
5 |
|
11 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 10 |
|
6 |
|
13 |
|
29 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 19 |
|
24 |
|
14 |
|
13 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
28 |
|
30 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
46 |
|
89 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
20 |
|
25 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
14 |
|
37 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Channel Infrastructure NZ from November 14, 2024.
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