October 17, 2024
Top 10 Stock Perseus 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 Perseus Strong Buy

360 METRICS	October 17, 2024
VALUE
VALUE	47
GROWTH
GROWTH	63
SAFETY
SAFETY	94
SENTIMENT
SENTIMENT	79
360° VIEW
360° VIEW	86

ANALYSIS: With an Obermatt 360° View of 86 (better than 86% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Perseus are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Perseus. The consolidated Growth Rank has a good rank of 63, 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 63% of competitors in the same industry. The consolidated Safety Rank at 94 means that the company has a financing structure that is safer than 94% 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 79, which means that professional investors are more optimistic about the stock than for 79% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 47, meaning that the share price of Perseus is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 53% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 86, Perseus is better positioned than 86% 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 63), a safe financing structure (Safety Rank of 94), and positive professional market sentiment (Sentiment Rank of 79), 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 Perseus compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (63% better than peers). The value rank could be the reverse reflection of that (37%). 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 Perseus very positive

SENTIMENT METRICS	October 17, 2024
ANALYST OPINION
ANALYST OPINION	48
OPINIONS CHANGE
OPINIONS CHANGE	85
PRO HOLDINGS
PRO HOLDINGS	86
MARKET PULSE
MARKET PULSE	46
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	79

ANALYSIS: With an Obermatt Sentiment Rank of 79 (better than 79% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock Perseus is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Perseus. Analyst Opinions are at a rank of 48 (worse than 52% 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 85, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Perseus. More encouragingly, the Professional Investors rank is 86, which means that professional investors hold more stock in this company than in 86% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 46, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 54% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 79 (more positive than 79% compared with investment alternatives), Perseus has a reputation among professional investors that is significantly higher than that of its competitors. The sentiment signals are mixed for Perseus. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: Perseus Stock Price Value below-average critical

VALUE METRICS	October 17, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	27
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	63
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	47
DIVIDEND YIELD
DIVIDEND YIELD	53
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	47

ANALYSIS: With an Obermatt Value Rank of 47 (worse than 53% compared with alternatives), Perseus 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 Perseus. Price-to-Profit (also referred to as price-earnings, P/E) is 63 which means that the stock price compared with what market professionals expect for future profits is lower than for 63% of comparable companies, indicating a good value concerning Perseus'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 47, which means that the stock price is lower as regards to invested capital than for 47% of comparable investments. On the other hand, Price-to-Sales is less favorable than 73% of alternatives (only 27% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 47% 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 47, is a hold recommendation based on Perseus'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: Perseus Growth Momentum good

GROWTH METRICS	October 17, 2024
REVENUE GROWTH
REVENUE GROWTH	14
PROFIT GROWTH
PROFIT GROWTH	33
CAPITAL GROWTH
CAPITAL GROWTH	100
STOCK RETURNS
STOCK RETURNS	89
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	63

ANALYSIS: With an Obermatt Growth Rank of 63 (better than 63% compared with alternatives), Perseus 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 half of the indicators below and half above average for Perseus. Capital Growth has a rank of 100, which means that currently professionals expect the company to grow its invested capital more than 33% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 89 (above 89% of alternative investments). But Sales Growth has only a rank of 14, which means that, currently, professionals expect the company to grow less than 86% of its competitors, and Profit Growth is also low at a rank of 33. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 63, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Perseus, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. ...read more

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Safety Strategy: Perseus Debt Financing Safety very solid

SAFETY METRICS	October 17, 2024
LEVERAGE
LEVERAGE	96
REFINANCING
REFINANCING	55
LIQUIDITY
LIQUIDITY	90
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	94

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2024, the company Perseus has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Perseus 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 Perseus. Leverage is at 96, meaning the company has a below-average debt-to-equity ratio. It has less debt than 96% of its competitors. Refinancing is at a rank of 55, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Finally, Liquidity is also good at a rank of 90, which means that the company generates more profit to service its debt than 90% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Perseus 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: Perseus Top Financial Performance

COMBINED PERFORMANCE	October 17, 2024
VALUE
VALUE	47
GROWTH
GROWTH	63
SAFETY
SAFETY	90
COMBINED
COMBINED	87

ANALYSIS: With an Obermatt Combined Rank of 87 (better than 87% compared with investment alternatives), Perseus (Gold Production, Australia) shares have much better financial characteristics than comparable stocks. Shares of Perseus are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives). But they show above-average growth (Growth Rank of 63) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 87, is a strong buy recommendation based on Perseus's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Perseus exhibits low value (Obermatt Value Rank of 47), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 63). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) 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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