November 28, 2024
Top 10 Stock Plazza 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 Plazza Strong Buy

360 METRICS	November 28, 2024
VALUE
VALUE	16
GROWTH
GROWTH	94
SAFETY
SAFETY	90
SENTIMENT
SENTIMENT	72
360° VIEW
360° VIEW	92

ANALYSIS: With an Obermatt 360° View of 92 (better than 92% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Plazza are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Plazza. The consolidated Growth Rank has a good rank of 94, 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 94% of competitors in the same industry. The consolidated Safety Rank at 90 means that the company has a financing structure that is safer than 90% 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 72, which means that professional investors are more optimistic about the stock than for 72% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 16, meaning that the share price of Plazza is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 84% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 92, Plazza 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 94), a safe financing structure (Safety Rank of 90), and positive professional market sentiment (Sentiment Rank of 72), 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 Plazza compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (94% better than peers). The value rank could be the reverse reflection of that (6%). 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 Plazza positive

SENTIMENT METRICS	November 28, 2024
ANALYST OPINION
ANALYST OPINION	81
OPINIONS CHANGE
OPINIONS CHANGE	2
PRO HOLDINGS
PRO HOLDINGS	88
MARKET PULSE
MARKET PULSE	67
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	72

ANALYSIS: With an Obermatt Sentiment Rank of 72 (better than 72% compared with alternatives), overall professional sentiment and engagement for the stock Plazza is above average. The Sentiment Rank is based on consolidating four sentiment indicators where all but one are above average for Plazza. Analyst Opinions are at a rank of 81 (better than 81% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. The Professional Investors rank is also good at 88, which means that currently, professional investors hold more stock in this company than in 88% of alternative investment opportunities. Pros tend to favor investing in this company. In addition, Market Pulse has a rank of 67 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 67% of competitors). But Analyst Opinions Change has a below-average rank of 2, which means that stock research experts are currently changing their opinions for the worse when it comes to recommending this stock. In other words, they are getting more critical of investments in Plazza. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 72 (more positive than 72% compared with investment alternatives), Plazza has a reputation among professional investors that is above-average compared with that of its competitors. This is an early sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it might just materialize in the future. ...read more

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Value Strategy: Plazza Stock Price Value low

VALUE METRICS	November 28, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	5
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	10
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	34
DIVIDEND YIELD
DIVIDEND YIELD	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	16

ANALYSIS: With an Obermatt Value Rank of 16 (worse than 84% compared with alternatives), Plazza shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Plazza. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 59% 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 5 which means that the stock price compared with what market professionals expect for future profits is higher than 95% of comparable companies, indicating a low value concerning Plazza's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 10 which means that the stock price compared with what market professionals expect for future profit levels is higher than 90% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34 is also low. Compared with invested capital, the stock price is higher than for 66% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 16, is a sell recommendation based on Plazza's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Plazza? 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 Plazza only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: Plazza Growth Momentum high

GROWTH METRICS	November 28, 2024
REVENUE GROWTH
REVENUE GROWTH	86
PROFIT GROWTH
PROFIT GROWTH	86
CAPITAL GROWTH
CAPITAL GROWTH	88
STOCK RETURNS
STOCK RETURNS	51
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	94

ANALYSIS: With an Obermatt Growth Rank of 94 (better than 94% compared with alternatives) for 2024, Plazza 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 Plazza. Sales Growth has a value of 86, which means that, currently, professionals expect the company to grow more than 86% of its competitors. The same is valid for Profit Growth with a value of 86 and for Capital Growth with 88. In addition, Stock Returns had an above-average rank value of 51, which means they have been higher than 51% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 94, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Plazza 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. ...read more

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Safety Strategy: Plazza Debt Financing Safety very solid

SAFETY METRICS	November 28, 2024
LEVERAGE
LEVERAGE	93
REFINANCING
REFINANCING	46
LIQUIDITY
LIQUIDITY	96
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90

ANALYSIS: With an Obermatt Safety Rank of 90 (better than 90% compared with alternatives) for 2024, the company Plazza has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Plazza 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, with two out of three indicators above average for Plazza. Leverage is at a rank of 93, meaning the company has a below-average debt-to-equity ratio. It has less debt than 93% of its competitors. Liquidity is also good at a rank of 96, meaning the company generates more profit to service its debt than 96% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 46, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 90 (better than 90% compared with alternatives), Plazza has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Plazza. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Plazza Top Financial Performance

COMBINED PERFORMANCE	November 28, 2024
VALUE
VALUE	16
GROWTH
GROWTH	94
SAFETY
SAFETY	96
COMBINED
COMBINED	82

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Plazza (Real Estate: Diversified Operations, Switzerland) shares have much better financial characteristics than comparable stocks. Shares of Plazza are low in value (priced high) with a consolidated Value Rank of 16 (worse than 84% of alternatives). But they show above-average growth (Growth Rank of 94) and are safely financed (Safety Rank of 90, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Plazza's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Plazza exhibits low value (Obermatt Value Rank of 16), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 94). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 90) 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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