Fact based stock research
Real Estate Credit Investments (LSE:RECI)

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Real Estate Credit Investments stock research in summary

realestatecreditinvestments.com

ANALYSIS: With an Obermatt Combined Rank of 41 (worse than 59% compared with investment alternatives), Real Estate Credit Investments (Thrifts & Mortgage Finance, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Real Estate Credit Investments are a good value (attractively priced) with a consolidated Value Rank of 57 (better than 57% of alternatives), are safely financed (Safety Rank of 54, which means low debt burdens), but show below-average growth (Growth Rank of 23). ...read more

RECOMMENDATION: A Combined Rank of 41, is a hold recommendation based on Real Estate Credit Investments's financial characteristics. As the company Real Estate Credit Investments's key financial metrics exhibit good value (Obermatt Value Rank of 57) but low growth (Obermatt Growth Rank of 23) while being safely financed (Obermatt Safety Rank of 54), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 57% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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	57
Growth Rank	23
Safety Rank	54
Combined Rank	41

Country	United Kingdom
Industry	Thrifts & Mortgage Finance
Index	FTSE All Shares
Size class	X-Small

19-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: Real Estate Credit Investments

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	85	75	74	57
GROWTH
GROWTH	6	29	60	23
SAFETY
SAFETY	84	72	75	54
SENTIMENT
SENTIMENT	n/a	10	68	^new
360° VIEW
360° VIEW	n/a	33	93	^new

Most recent update of the stock research: 19-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 Real Estate Credit Investments is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	85	75	74	57
GROWTH
GROWTH	6	29	60	23
SAFETY
SAFETY	84	72	75	54
COMBINED
COMBINED	75	72	98	41

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Real Estate Credit Investments the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 57 (better than 57% compared with alternatives), Real Estate Credit Investments shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Real Estate Credit Investments. Expected dividend yields are higher than for 94% of comparable companies (a Dividend Yield rank of 94), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 52, which means that the stock price is lower compared with invested capital than for 52% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 23 which means that the stock price compared with what market professionals expect for future profits is higher than for 77% of comparable companies, indicating a low value concerning Real Estate Credit Investments's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Real Estate Credit Investments with a rank of 43. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 57% of comparable companies, indicating a low value concerning Real Estate Credit Investments's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 57, is a buy recommendation based on Real Estate Credit Investments's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Real Estate Credit Investments may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. 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 essential 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)	43	25	27	23
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	74	51	51	43
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	62	62	59	52
DIVIDEND YIELD
DIVIDEND YIELD	98	98	94	94
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	85	75	74	57

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Real Estate Credit Investments; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), Real Estate Credit Investments 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 half of the indicators below and half above average for Real Estate Credit Investments. Profit Growth has a rank of 55, which means that currently professionals expect the company to grow its profits more than 55% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 61 (above 61% of alternative investments). But Sales Growth has a below the median rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Capital Growth also has a lower rank of 12. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Real Estate Credit Investments. 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, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	1	90	73	19
PROFIT GROWTH
PROFIT GROWTH	n/a	15	81	55
CAPITAL GROWTH
CAPITAL GROWTH	n/a	16	25	12
STOCK RETURNS
STOCK RETURNS	60	43	46	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	6	29	60	23

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Real Estate Credit Investments.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company Real Estate Credit Investments has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Real Estate Credit Investments 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 just one indicator above average for Real Estate Credit Investments and the other two below average. Leverage is at a rank of 69 meaning the company has a below-average debt-to-equity ratio. It has less debt than 69% of its competitors.Refinancing is at a rank of 41, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 59% of its competitors. Liquidity is at a rank of 42, meaning that the company generates less profit to service its debt than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), Real Estate Credit Investments has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Real Estate Credit Investments are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Real Estate Credit Investments and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	72	48	41	69
REFINANCING
REFINANCING	68	53	51	41
LIQUIDITY
LIQUIDITY	61	78	82	42
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	84	72	75	54

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Real Estate Credit Investments 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	78	91	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	14	98	^new
MARKET PULSE
MARKET PULSE	n/a	7	11	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	68	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Real Estate Credit Investments.
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