June 29, 2023
Top 10 Stock Patrizia Strong Buy 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: Patrizia – Top 10 Stock in Deutscher Aktienindex Small Cap SDAX
Patrizia is listed as a top 10 stock on June 29, 2023 in the market index SDAX because of its high performance in at least one of the Obermatt investment strategies. Three consolidated Obermatt Ranks are above-average. Only the Value Rank is below average. The investment rationale may be an investment in future growth, supported by professional market opinion. Based on the Obermatt 360° View of 92 (top 92% performer), Obermatt assesses an overall strong buy recommendation for Patrizia on June 29, 2023.
Snapshot: Obermatt Ranks
| Country | Germany |
| Industry | Real Estate: Diversified Operations |
| Index | R/E Europe, SDAX |
| Size class | Medium |
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° View Patrizia Strong Buy
| 360 METRICS | June 29, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 69 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 74 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 83 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 92 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 92 (better than 92% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Patrizia are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Patrizia. The consolidated Growth Rank has a good rank of 69, 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 69% of competitors in the same industry. The consolidated Safety Rank at 74 means that the company has a financing structure that is safer than 74% 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 83, which means that professional investors are more optimistic about the stock than for 83% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 46, meaning that the share price of Patrizia is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 54% of alternative stocks in the same industry. ...read more
RECOMMENDATION: With a consolidated 360° View of 92, Patrizia is better positioned than 92% 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 69), a safe financing structure (Safety Rank of 74), and positive professional market sentiment (Sentiment Rank of 83), 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 Patrizia compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (69% better than peers). The value rank could be the reverse reflection of that (31%). 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
Sentiment Strategy: Professional Market Sentiment for Patrizia very positive
ANALYSIS: With an Obermatt Sentiment Rank of 83 (better than 83% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Patrizia is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Patrizia. Analyst Opinions are at a rank of 87 (better than 87% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. In addition, Analyst Opinions Change has a rank of 50, which means that currently, stock research experts are getting even more optimistic. Obermatt Market Pulse further supports this with a rank of 83, which means that the current professional news and professional social networks are generally positive when discussing this company (more positive news than for 83% of competitors). But there are few stock holdings by institutional investors. The Professional Investors rank is low at 40, which means that currently, professional investors hold less stock in this company than in 60% of alternative investment opportunities. Pros tend to invest in other companies. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 83 (more positive than 83% compared with investment alternatives), Patrizia has a reputation among professional investors that is significantly higher than that of its competitors. Not having too many professionals invested in Patrizia may be less of an issue, especially if the stock is from a smaller company where professionals typically invest less. It is natural for professional investors to focus on large and extra-large companies, as they provide more safety. Smaller companies attract fewer professionals in the shareholder community. Overall, the signals from the professionals are still quite favorable for investments in Patrizia. ...read more
Value Strategy: Patrizia Stock Price Value below-average critical
ANALYSIS: With an Obermatt Value Rank of 46 (worse than 54% compared with alternatives), Patrizia shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Patrizia. Price-to-Sales (P/S) is 78 which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value for Patrizia's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 52. Finally, compared with other companies in the same industry, dividend yields of Patrizia are expected to be higher than for 53% of all competitors (a Dividend Yield rank of 53). The only low rank is for expected profits with a Price-to-Profit Rank of 18, indicating that the market expects the company's profit to be low despite a high dividend. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 46, is a hold recommendation based on Patrizia's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. ...read more
Growth Strategy: Patrizia Growth Momentum good
ANALYSIS: With an Obermatt Growth Rank of 69 (better than 69% compared with alternatives), Patrizia shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Patrizia. Sales Growth has a rank of 53 which means that currently, professionals expect the company to grow more than 53% of its competitors. Both Profit Growth, with a rank of 98, and Stock Returns, with a rank of 57, are also above average. But Capital Growth only has a rank of 36, which means that, currently, professionals expect the company to grow its invested capital less than 64% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 69, 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
Safety Strategy: Patrizia Debt Financing Safety above-average
| SAFETY METRICS | June 29, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 93 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 90 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 8 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 74 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% compared with alternatives), the company Patrizia 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 Patrizia 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 two out of three are above average for Patrizia.Leverage is at 93, meaning the company has a below-average debt-to-equity ratio. It has less debt than 93% of its competitors.Refinancing is at a rank of 90, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 90% of its competitors. Liquidity is at 8, meaning that the company generates less profit to service its debt than 92% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 74 (better than 74% compared with alternatives), Patrizia has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. ...read more
Combined financial peformance: Patrizia Top Financial Performance
| COMBINED PERFORMANCE | June 29, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 69 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 8 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 82 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Patrizia (Real Estate: Diversified Operations, Germany) shares have much better financial characteristics than comparable stocks. Shares of Patrizia are low in value (priced high) with a consolidated Value Rank of 46 (worse than 54% of alternatives). But they show above-average growth (Growth Rank of 69) and are safely financed (Safety Rank of 74, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Patrizia's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Patrizia exhibits low value (Obermatt Value Rank of 46), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 69). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 74) 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
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.