November 21, 2024
Top 10 Stock Porsche AG 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 Porsche AG Buy

360 METRICS	November 21, 2024
VALUE
VALUE	33
GROWTH
GROWTH	14
SAFETY
SAFETY	92
SENTIMENT
SENTIMENT	59
360° VIEW
360° VIEW	50

ANALYSIS: With an Obermatt 360° View of 50 (better than 50% compared with alternatives), overall professional sentiment and financial characteristics for the stock Porsche AG are above average. The 360° View is based on consolidating four consolidated indicators, with half below and half above average for Porsche AG. The consolidated Sentiment Rank has a good rank of 59, which means that professional investors are more optimistic about the stock than for 59% of alternative investment opportunities. It also rates well regarding its financing structure, with the consolidated Safety Rank at 92 or better than 92% of its peers when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the stock is expensive and expects low growth. The consolidated Value Rank is only 33, meaning that the share price of Porsche AG is on the high side, compared with indicators such as revenues, profits, and invested capital. The company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth,and stock returns, with its Growth Rank at 14. ...read more

RECOMMENDATION: With a consolidated 360° View of 50, Porsche AG is better positioned than 50% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, namely the positive professional market sentiment (Sentiment Rank of 59) and safe financing practices (Safety Rank of 92), the case for investing in this stock needs further thought. The Value and the Safety Ranks are below average. The Safety Rank is the least critical of the four consolidated ranks, because it only reflects financing practices. So the question is: How to assess below-average value against above-average sentiment? This may be a case where growth is in the future, not yet reflected in current performance. Companies that might fall into this category are those with intellectual property, such as technology and pharmaceutical companies. In early phases, they are expensive relative to their size and have a lot of capital on their books, as is the case here. Investors expect a better future and are willing to pay a higher price than is warranted by the current company size. These higher prices drive stock price value down in the short term. In this case, future growth may be the strongest driver of the investment case, reflected by institutional investors' opinions. With a weak Value Rank, the question is how much to sacrifice value at the cost of positive sentiment. Sometimes market sentiment is just hype, but sometimes it is right. You pay more than market-average for this stock, but it may be worth it, if the future of Porsche AG̣ is bright. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for Porsche AG positive

SENTIMENT METRICS	November 21, 2024
ANALYST OPINION
ANALYST OPINION	63
OPINIONS CHANGE
OPINIONS CHANGE	28
PRO HOLDINGS
PRO HOLDINGS	49
MARKET PULSE
MARKET PULSE	52
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	59

ANALYSIS: With an Obermatt Sentiment Rank of 59 (better than 59% compared with alternatives), overall professional sentiment and engagement for the stock Porsche AG is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and half above average for Porsche AG. Analyst Opinions are at a rank of 63 (better than 63% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. Market Pulse is also positive with a rank of 52, which means that the current professional news and professional social networks are positive when discussing this company (more positive news than for 52% of competitors). But Analyst Opinions Change is negative with a below 50 rank of 28, which means that stock research experts are changing their opinions for the worse in recommending the company. In other words, they are getting more critical of investments in Porsche AG. There are also only so many institutional investors holding company stock with a Professional Investors rank of 49, which means that, currently, professional investors hold less stock in this company than in 51% of alternative investment opportunities. Pros tend to invest in other companies. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 59 (more positive than 59% compared with investment alternatives), Porsche AG has a reputation among professional investors that is above-average compared with that of its competitors. The signals are ambivalent. The positive news in the market contradicts the negative change in analyst recommendations. Since the overall analyst recommendations are still above average, the stock may be safer for investing, especially if it is not an extra-large company where Pros tend to be less present. In such a case, the Pro Investor rank is not a problem. ...read more

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Value Strategy: Porsche AG Stock Price Value below-average critical

VALUE METRICS	November 21, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	37
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	40
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	25
DIVIDEND YIELD
DIVIDEND YIELD	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	33

ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), Porsche AG 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 Porsche AG. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 65% 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 37 which means that the stock price compared with what market professionals expect for future profits is higher than 63% of comparable companies, indicating a low value concerning Porsche AG's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 40 which means that the stock price compared with what market professionals expect for future profit levels is higher than 60% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 25 is also low. Compared with invested capital, the stock price is higher than for 75% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 33, is a hold recommendation based on Porsche AG's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Porsche AG? 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 Porsche AG only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: Porsche AG Growth Momentum negative

GROWTH METRICS	November 21, 2024
REVENUE GROWTH
REVENUE GROWTH	48
PROFIT GROWTH
PROFIT GROWTH	29
CAPITAL GROWTH
CAPITAL GROWTH	27
STOCK RETURNS
STOCK RETURNS	21
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	14

ANALYSIS: With an Obermatt Growth Rank of 14 (better than 14% compared with alternatives), Porsche AG shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Porsche AG. Sales Growth has a rank of 48, which means that currently professionals expect the company to grow less than 52% of its competitors. The same is valid for Profit Growth, with a rank of 29, and Capital Growth with 27. In addition, Stock Returns have a below market rank of 21, which means that the stock returns have recently been below 79% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 14, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. ...read more

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Safety Strategy: Porsche AG Debt Financing Safety very solid

SAFETY METRICS	November 21, 2024
LEVERAGE
LEVERAGE	81
REFINANCING
REFINANCING	35
LIQUIDITY
LIQUIDITY	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	92

ANALYSIS: With an Obermatt Safety Rank of 92 (better than 92% compared with alternatives) for 2024, the company Porsche AG has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Porsche AG 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 Porsche AG. Leverage is at a rank of 81, meaning the company has a below-average debt-to-equity ratio. It has less debt than 81% of its competitors. Liquidity is also good at a rank of 98, meaning the company generates more profit to service its debt than 98% 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 35, 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 65% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 92 (better than 92% compared with alternatives), Porsche AG 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 Porsche AG. 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: Porsche AG Below-Average Financial Performance

COMBINED PERFORMANCE	November 21, 2024
VALUE
VALUE	33
GROWTH
GROWTH	14
SAFETY
SAFETY	98
COMBINED
COMBINED	42

ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Porsche AG (Automobile Manufacturers, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Porsche AG are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives) and show below-average growth (Growth Rank of 14) but are safely financed (Safety Rank of 92), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Porsche AG's financial characteristics. As the company Porsche AG's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 33) and low growth (Obermatt Growth Rank of 14), 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. In this case, good financing practices (Obermatt Safety Rank of 92) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. ...read more

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