October 31, 2024
Top 10 Stock Poste Italiane SpA 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: Poste Italiane SpA – Top 10 Stock in Milano Italia Borsa Index MIB
Poste Italiane SpA is listed as a top 10 stock on October 31, 2024 in the market index MIB because of its high performance in at least one of the Obermatt investment strategies. As three out of four consolidated Obermatt Ranks exhibit excellent performance, it is a solid investment where the risk of paying too much for the shares is low. Based on the Obermatt 360° View of 55 (high 55% performer), Obermatt assesses an overall buy recommendation for Poste Italiane SpA on October 31, 2024.
Snapshot: Obermatt Ranks
| Country | Italy |
| Industry | Life & Health Insurance |
| Index | MIB, Renewables Users |
| Size class | XX-Large |
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 Poste Italiane SpA Buy
| 360 METRICS | October 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 59 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 73 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 43 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 87 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 55 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 55 (better than 55% compared with alternatives), overall professional sentiment and financial characteristics for the stock Poste Italiane SpA are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Poste Italiane SpA. The consolidated Value Rank has an attractive rank of 59, which means that the share price of Poste Italiane SpA is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 59% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 73, 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. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 87. But the company’s financing is risky with a Safety rank of 43. This means 57% of comparable companies have a safer financing structure than Poste Italiane SpA. ...read more
RECOMMENDATION: With a consolidated 360° View of 55, Poste Italiane SpA is better positioned than 55% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 59), above-average growth (Growth Rank of 73), and positive market sentiment in the professional investor community (Sentiment Rank of 87), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 43), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Poste Italiane SpA is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more
Sentiment Strategy: Professional Market Sentiment for Poste Italiane SpA very positive
ANALYSIS: With an Obermatt Sentiment Rank of 87 (better than 87% compared with alternatives) for 2022, overall professional sentiment and engagement for the stock Poste Italiane SpA is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Poste Italiane SpA. Analyst Opinions are at a rank of 70 (better than 70% 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 63, which means that stock research experts are changing their opinions for the better in recommending investing in the company. In other words, they are getting even more optimistic about investments in Poste Italiane SpA. Finally, the Professional Investors rank is 95, which means that currently, professional investors hold more stock in this company than in 95% of alternative investment opportunities. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 87 (more positive than 87% compared with investment alternatives), Poste Italiane SpA has a reputation among professional investors that is significantly higher than that of its competitors. Pros tend to favor investing in this company. But there is also a signal for caution. Market Pulse has a rank of 37, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 63% of competitors). This could mean future risks and should make investors careful. Attention to negative news for Poste Italiane SpA is worthwhile because they may be early warning signals. Without those, all other professional signals are encouraging, especially since analysts are getting more optimistic. ...read more
Value Strategy: Poste Italiane SpA Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Poste Italiane SpA shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Poste Italiane SpA. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 79 which means that the stock price compared with what market professionals expect for future profits is lower than for 79% of comparable companies, indicating a good value concerning Poste Italiane SpA's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 55, and for Dividend Yield with a Dividend Yield Rank of 75. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 68% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 32). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Poste Italiane SpA's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Poste Italiane SpA has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Poste Italiane SpA shares. ...read more
Growth Strategy: Poste Italiane SpA Growth Momentum good
ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Poste Italiane SpA 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 Poste Italiane SpA. Capital Growth has a rank of 97, which means that currently professionals expect the company to grow its invested capital more than 28% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 91 (above 91% of alternative investments). But Sales Growth has only a rank of 21, which means that, currently, professionals expect the company to grow less than 79% of its competitors, and Profit Growth is also low at a rank of 28. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, 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 Poste Italiane SpA, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. ...read more
Safety Strategy: Poste Italiane SpA Debt Financing Safety below-average
| SAFETY METRICS | October 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 3 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 93 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 100 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 43 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 43 (better than 43% compared with alternatives), the company Poste Italiane SpA has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Poste Italiane SpA is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, 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 Poste Italiane SpA. Refinancing is at 93, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 93% of its competitors. Liquidity is also good at 100, meaning the company generates more profit to service its debt than 100% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 3, which means the company has an above-average debt-to-equity ratio. It has more debt than 97% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 43 (worse than 57% compared with alternatives), Poste Italiane SpA has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Poste Italiane SpA could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. ...read more
Combined financial peformance: Poste Italiane SpA Above-Average Financial Performance
| COMBINED PERFORMANCE | October 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 59 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 73 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 100 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 51 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 51 (better than 51% compared with investment alternatives), Poste Italiane SpA (Life & Health Insurance, Italy) shares have above-average financial characteristics compared with similar stocks. Shares of Poste Italiane SpA are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), show above-average growth (Growth Rank of 73) but are riskily financed (Safety Rank of 43), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 51, is a buy recommendation based on Poste Italiane SpA's financial characteristics. As the company Poste Italiane SpA's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 59) and above-average growth (Obermatt Growth Rank of 73), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 43) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...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.