December 12, 2024
Top 10 Stock Savills 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 Savills Buy

360 METRICS	December 12, 2024
VALUE
VALUE	46
GROWTH
GROWTH	90
SAFETY
SAFETY	42
SENTIMENT
SENTIMENT	32
360° VIEW
360° VIEW	54

ANALYSIS: With an Obermatt 360° View of 54 (better than 54% compared with alternatives), overall professional sentiment and financial characteristics for the stock Savills are above average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for Savills. The consolidated Growth Rank has a good rank of 90, 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. It ranks higher than 90% of competitors in the same industry. The other indicators are below average, namely the Value, Safety, and Sentiment Ranks.The Value Rank at 46 means that the share price of Savills is on the high side compared with its peers regarding revenues, profits, and invested capital. The stock price is higher than for 54% of alternative stocks in the same industry. The consolidated Safety Rank has a riskier rank of 42, which means that the company has a riskier financing structure than 58% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. The consolidated Sentiment Rank also has a low rank of 32, indicating professional investors are more pessimistic about the stock than for 68% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 54, Savills is better positioned than 54% of all alternative stock investment opportunities based on the Obermatt Method. As only one of the consolidated Obermatt Ranks exhibits excellent performance, namely the above-average growth (Growth Rank of 90), it is a riskier stock investment proposition. Aside from the critical professional market sentiment (Sentiment Rank of 32), the company is rather risky when it comes to financing (Safety Rank of 42). The negative market view on Savills may be due to the high stock price (low value). A growth company like this may get too expensive at one point in time. If too many investors are desperate to join the party, they may drive stock prices above reasonable levels. While it is typical for growth companies to have low value, because investors are willing to pay more for companies that are expected to have high growth, the crucial question is: how much more do you pay for the stock of Savills compared with alternatives? You can use the following rule of thumb: The value rank shouldn’t be lower than one minus the growth rank. For example, if the growth rank is at 75, and the value rank is at 5, you should tread carefully. If the value rank is at 40, it still might be a good value (even though it is lower than 50). As market sentiment is critical, you should be careful with paying more than market-average for this stock and conduct further research into the company's future growth potential. ...read more

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Sentiment Strategy: Professional Market Sentiment for Savills only reserved

SENTIMENT METRICS	December 12, 2024
ANALYST OPINION
ANALYST OPINION	58
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	49
MARKET PULSE
MARKET PULSE	25
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	32

ANALYSIS: With an Obermatt Sentiment Rank of 32 (better than 32% compared with alternatives), overall professional sentiment and engagement for the stock Savills is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Savills. Analyst Opinions are at a rank of 58 (better than 58% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive and has a rank of 50 which means that currently, stock research experts are getting even more optimistic about investments in Savills. But Market Pulse has a low rank of 25, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 75% of competitors). This is an essential sign of caution, as it could be the forebearer of bad news. Professional Investors are also somewhat absent with a 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. This is expected if the company is of a smaller size (medium or smaller). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 32 (less encouraging than 68% compared with investment alternatives), Savills has a reputation among professional investors that is below that of its competitors. While the general news feeds in the professional market are negative, the analyst recommendations are optimistic about the company, and even increase their ratings despite the negative news. This is an ambiguous situation with positive and negative signals from the professional side. Investors should be on the lookout for negative news but not worry too much about it as long as the overall news is still positive. ...read more

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Value Strategy: Savills Stock Price Value below-average critical

VALUE METRICS	December 12, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	89
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	51
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	8
DIVIDEND YIELD
DIVIDEND YIELD	66
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	46

ANALYSIS: With an Obermatt Value Rank of 46 (worse than 54% compared with alternatives), Savills 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 above average for Savills. Price-to-Sales (P/S) is 89, which means that the stock price compared with what market professionals expect for future sales is lower than for 89% of comparable companies, indicating a good value concerning Savills's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 51% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 66 (dividends are expected to be higher than 66% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 92% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Savills to 8. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 46, is a hold recommendation based on Savills's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. ...read more

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Growth Strategy: Savills Growth Momentum high

GROWTH METRICS	December 12, 2024
REVENUE GROWTH
REVENUE GROWTH	62
PROFIT GROWTH
PROFIT GROWTH	63
CAPITAL GROWTH
CAPITAL GROWTH	100
STOCK RETURNS
STOCK RETURNS	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	90

ANALYSIS: With an Obermatt Growth Rank of 90 (better than 90% compared with alternatives) for 2024, Savills 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 Savills. Sales Growth has a value of 62, which means that, currently, professionals expect the company to grow more than 62% of its competitors. The same is valid for Profit Growth with a value of 63 and for Capital Growth with 100. In addition, Stock Returns had an above-average rank value of 81, which means they have been higher than 81% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 90, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Savills 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: Savills Debt Financing Safety below-average

SAFETY METRICS	December 12, 2024
LEVERAGE
LEVERAGE	57
REFINANCING
REFINANCING	72
LIQUIDITY
LIQUIDITY	16
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	42

ANALYSIS: With an Obermatt Safety Rank of 42 (better than 42% compared with alternatives), the company Savills 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 Savills 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 where two out of three are above average for Savills.Leverage is at 57, meaning the company has a below-average debt-to-equity ratio. It has less debt than 57% of its competitors.Refinancing is at a rank of 72, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 72% of its competitors. Liquidity is at 16, meaning that the company generates less profit to service its debt than 84% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 42 (worse than 58% compared with alternatives), Savills has a financing structure that is riskier than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. ...read more

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Combined financial peformance: Savills Above-Average Financial Performance

COMBINED PERFORMANCE	December 12, 2024
VALUE
VALUE	46
GROWTH
GROWTH	90
SAFETY
SAFETY	16
COMBINED
COMBINED	68

ANALYSIS: With an Obermatt Combined Rank of 68 (better than 68% compared with investment alternatives), Savills (Real Estate Services, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Savills are low in value (priced high) with a consolidated Value Rank of 46 (worse than 54% of alternatives), and are riskily financed (Safety Rank of 42, which means above-average debt burdens) but show above-average growth (Growth Rank of 90). ...read more

RECOMMENDATION: A Combined Rank of 68, is a buy recommendation based on Savills's financial characteristics. As the company Savills shows low value with an Obermatt Value Rank of 46 (54% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 90% of comparable companies (Obermatt Growth Rank is 90). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 42 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Savills, even a low-value company (in terms of its key financial indicators) can be a good investment. ...read more

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