October 24, 2024
Top 10 Stock Robert Walters Sell 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: Robert Walters – Top 10 Stock in Customer Satisfaction Leaders in Europe
Robert Walters is listed as a top 10 stock on October 24, 2024 in the market index Customer Focus EU because of its high performance in at least one of the Obermatt investment strategies. While only half of the consolidated Obermatt Ranks exhibit above-average performance, the professional market sentiment is positive and it may be a solid investment proposition, especially if a growth recovery is to be expected soon. Based on the Obermatt 360° View of 20 (20% performer), Obermatt issues an overall sell recommendation for Robert Walters on October 24, 2024.
Snapshot: Obermatt Ranks
| Country | United Kingdom |
| Industry | HR- & Employment Services |
| Index | FTSE All Shares, Customer Focus EU, Dividends Europe, SDG 12, SDG 13, SDG 15, SDG 7 |
| Size class | 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 Robert Walters Sell
| 360 METRICS | October 24, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 60 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 8 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 47 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 52 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 20 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 20 (better than 20% compared with alternatives), overall professional sentiment and financial characteristics for the stock Robert Walters are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with half the metrics below and half above average for Robert Walters. The consolidated Value Rank has an attractive rank of 60, which means that the share price of Robert Walters is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 60% of alternative stocks in the same industry. The consolidated Sentiment Rank has a good rank of 52, which means that professional investors are more optimistic about the stock than for 52% of alternative investment opportunities. But the consolidated Growth Rank has a low rank of 8, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. The consolidated Safety Rank has a riskier rank of 47, meaning the company has a riskier financing structure than 53 comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. ...read more
RECOMMENDATION: With a consolidated 360° View of 20, Robert Walters is worse than 80% of all alternative stock investment opportunities based on the Obermatt Method. This means that Robert Walters shares are on the riskier side for investors. Half of the consolidated Obermatt Ranks exhibit above-average performance, but the other half are below market levels. The company enjoys a good value (Value Rank of 60) and positive market sentiment in the professional investor community (Sentiment Rank of 52), but growth expectations are below-average (Growth Rank of 8) and the financing structure is on the risky side(Safety Rank of 47). This combination is rather dangerous, because high debt levels (low safety) require growth to finance the debt burden. The current low growth level may be temporary, because professionals are actually optimistic (positive sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. Companies with less growth typically have a lower price than fast-growing competitors. Even though professional investor sentiment is strong, we recommend further evaluating whether the future of Robert Walters is as challenging as the stock's low price suggests. Since the professional community is optimistic, the stock might just be going through a more challenging phase now, indicating that timing might be good now. ...read more
Sentiment Strategy: Professional Market Sentiment for Robert Walters positive
ANALYSIS: With an Obermatt Sentiment Rank of 52 (better than 52% compared with alternatives), overall professional sentiment and engagement for the stock Robert Walters is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and half above average for Robert Walters. Analyst Opinions are at a rank of 75 (better than 75% 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 89, which means that the current professional news and professional social networks are positive when discussing this company (more positive news than for 89% of competitors). But Analyst Opinions Change is negative with a below 50 rank of 22, 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 Robert Walters. There are also only so many institutional investors holding company stock with a Professional Investors rank of 14, which means that, currently, professional investors hold less stock in this company than in 86% of alternative investment opportunities. Pros tend to invest in other companies. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 52 (more positive than 52% compared with investment alternatives), Robert Walters 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
Value Strategy: Robert Walters Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Robert Walters shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Robert Walters. Price-to-Sales (P/S) is 83 which means that the stock price compared with what market professionals expect for future sales is lower than for 83% of comparable companies, indicating a good value for Robert Walters's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 67. Finally, compared with other companies in the same industry, dividend yields of Robert Walters are expected to be higher than for 96% of all competitors (a Dividend Yield rank of 96). The only low rank is for expected profits with a Price-to-Profit Rank of 31, indicating that the market expects the company's profit to be low despite a high dividend. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Robert Walters's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. ...read more
Growth Strategy: Robert Walters Growth Momentum negative
ANALYSIS: With an Obermatt Growth Rank of 8 (better than 8% compared with alternatives), Robert Walters 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 Robert Walters. Sales Growth has a rank of 30, which means that currently professionals expect the company to grow less than 70% of its competitors. The same is valid for Profit Growth, with a rank of 1, and Capital Growth with 10. In addition, Stock Returns have a below market rank of 48, which means that the stock returns have recently been below 52% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 8, 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
Safety Strategy: Robert Walters Debt Financing Safety below-average
| SAFETY METRICS | October 24, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 47 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 82 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 30 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 47 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 47 (better than 47% compared with alternatives), the company Robert Walters 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 Robert Walters 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 just one indicator above average for Robert Walters and the other two below average. Refinancing is at 82, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 82% of its competitors. But Leverage is high with a rank of 47, meaning the company has an above-average debt-to-equity ratio. It has more debt than 53% of its competitors. Liquidity is also on the riskier side with a rank of 30, meaning the company generates less profit to service its debt than 70% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 47 (worse than 53% compared with alternatives), Robert Walters has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Robert Walters are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. ...read more
Combined financial peformance: Robert Walters Lowest Financial Performance
| COMBINED PERFORMANCE | October 24, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 60 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 8 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 30 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 16 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 16 (worse than 84% compared with investment alternatives), Robert Walters (HR- & Employment Services, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Robert Walters are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives) but show below-average growth (Growth Rank of 8), and are riskily financed (Safety Rank of 47), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 16, is a sell recommendation based on Robert Walters's financial characteristics. As the company Robert Walters's key financial metrics exhibit good value (Obermatt Value Rank of 60) but low growth (Obermatt Growth Rank of 8) and risky financing practices (Obermatt Safety Rank of 47), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 60% of comparable companies, may indicate 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. ...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.