Fact based stock research
Petronet LNG (NSEI:PETRONET)

INE347G01014

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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.

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(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Petronet LNG stock research in summary

petronetlng.in

ANALYSIS: With an Obermatt Combined Rank of 88 (better than 88% compared with investment alternatives), Petronet LNG (Oil & Gas Transportation, India) shares have much better financial characteristics than comparable stocks. Shares of Petronet LNG are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives). But they show above-average growth (Growth Rank of 95) and are safely financed (Safety Rank of 88, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 88, is a strong buy recommendation based on Petronet LNG's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Petronet LNG exhibits low value (Obermatt Value Rank of 25), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 95). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 88) 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). 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	25
Growth Rank	95
Safety Rank	88
Combined Rank	88

Country	India
Industry	Oil & Gas Transportation
Index
Size class	X-Large

26-Dec-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: Petronet LNG

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	32	48	25
GROWTH
GROWTH	25	27	73	95
SAFETY
SAFETY	97	92	88	88
SENTIMENT
SENTIMENT	n/a	22	36	^new
360° VIEW
360° VIEW	n/a	29	65	^new

Most recent update of the stock research: 26-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Petronet LNG is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	32	48	25
GROWTH
GROWTH	25	27	73	95
SAFETY
SAFETY	97	92	88	88
COMBINED
COMBINED	89	35	94	88

Last update of combined financial performance: 26-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Petronet LNG the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Petronet LNG shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Petronet LNG. Price-to-Sales (P/S) is 62, which means that the stock price compared with what market professionals expect for future sales is lower than 62% of comparable companies, indicating a good value concerning to Petronet LNG's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 38, meaning that dividends are expected to be lower than for 62% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 81% of alternatives (only 19% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 66% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Petronet LNG's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Petronet LNG could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Petronet LNG looks like an expensive investment today. 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 especially important 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)	86	66	73	62
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	58	49	58	34
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	22	17	33	19
DIVIDEND YIELD
DIVIDEND YIELD	84	58	66	38
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91	32	48	25

Last update of Value Rank: 26-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Petronet LNG; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 95 (better than 95% compared with alternatives) for 2024, Petronet LNG 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 all four indicators above average for Petronet LNG. Sales Growth has a value of 68, which means that, currently, professionals expect the company to grow more than 68% of its competitors. The same is valid for Profit Growth with a value of 53 and for Capital Growth with 98. In addition, Stock Returns had an above-average rank value of 89, which means they have been higher than 89% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 95, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Petronet LNG exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. 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. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	28	26	70	68
PROFIT GROWTH
PROFIT GROWTH	n/a	23	37	53
CAPITAL GROWTH
CAPITAL GROWTH	n/a	98	96	98
STOCK RETURNS
STOCK RETURNS	29	27	35	89
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	25	27	73	95

Last update of Growth Rank: 26-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Petronet LNG.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company Petronet LNG has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Petronet LNG 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 Petronet LNG. Leverage is at 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Refinancing is at a rank of 59, meaning that 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. Finally, Liquidity is also good at a rank of 82, which means that the company generates more profit to service its debt than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 88 (better than 88% compared with alternatives), Petronet LNG 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. Investors may not have a debt issue with Petronet LNG but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	94	78	82	86
REFINANCING
REFINANCING	59	61	73	59
LIQUIDITY
LIQUIDITY	100	82	78	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	97	92	88	88

Last update of Safety Rank: 26-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Petronet LNG 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	46	26	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	70	100	^new
MARKET PULSE
MARKET PULSE	n/a	8	21	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	22	36	^new

Last update of Sentiment Rank: 26-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Petronet LNG.
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