September 5, 2024
Top 10 Stock Segro 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 Segro Buy

360 METRICS	September 5, 2024
VALUE
VALUE	10
GROWTH
GROWTH	95
SAFETY
SAFETY	83
SENTIMENT
SENTIMENT	51
360° VIEW
360° VIEW	66

ANALYSIS: With an Obermatt 360° View of 66 (better than 66% compared with alternatives), overall professional sentiment and financial characteristics for the stock Segro are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Segro. The consolidated Growth Rank has a good rank of 95, 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. This means that growth is higher than for 95% of competitors in the same industry. The consolidated Safety Rank at 83 means that the company has a financing structure that is safer than 83% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 51, which means that professional investors are more optimistic about the stock than for 51% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 10, meaning that the share price of Segro is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 90% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 66, Segro is better positioned than 66% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 95), a safe financing structure (Safety Rank of 83), and positive professional market sentiment (Sentiment Rank of 51), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Segro compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (95% better than peers). The value rank could be the reverse reflection of that (5%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Segro positive

SENTIMENT METRICS	September 5, 2024
ANALYST OPINION
ANALYST OPINION	53
OPINIONS CHANGE
OPINIONS CHANGE	47
PRO HOLDINGS
PRO HOLDINGS	45
MARKET PULSE
MARKET PULSE	69
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	51

ANALYSIS: With an Obermatt Sentiment Rank of 51 (better than 51% compared with alternatives), overall professional sentiment and engagement for the stock Segro is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and half above average for Segro. Analyst Opinions are at a rank of 53 (better than 53% 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 69, which means that the current professional news and professional social networks are positive when discussing this company (more positive news than for 69% of competitors). But Analyst Opinions Change is negative with a below 50 rank of 47, 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 Segro. There are also only so many institutional investors holding company stock with a Professional Investors rank of 45, which means that, currently, professional investors hold less stock in this company than in 55% of alternative investment opportunities. Pros tend to invest in other companies. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 51 (more positive than 51% compared with investment alternatives), Segro 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: Segro Stock Price Value low

VALUE METRICS	September 5, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	3
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	18
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	27
DIVIDEND YIELD
DIVIDEND YIELD	51
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	10

ANALYSIS: With an Obermatt Value Rank of 10 (worse than 90% compared with alternatives), Segro shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Segro. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 51% 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 3 which means that the stock price compared with what market professionals expect for future profits is higher than 97% of comparable companies, indicating a low value concerning Segro's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 18 which means that the stock price compared with what market professionals expect for future profit levels is higher than 82% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 27 is also low. Compared with invested capital, the stock price is higher than for 73% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 10, is a sell recommendation based on Segro's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Segro? 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 Segro only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: Segro Growth Momentum high

GROWTH METRICS	September 5, 2024
REVENUE GROWTH
REVENUE GROWTH	60
PROFIT GROWTH
PROFIT GROWTH	45
CAPITAL GROWTH
CAPITAL GROWTH	89
STOCK RETURNS
STOCK RETURNS	87
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	95

ANALYSIS: With an Obermatt Growth Rank of 95 (better than 95% compared with alternatives) for 2024, Segro 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 but one indicator above average for Segro. Sales Growth has a rank of 60 which means that currently, professionals expect the company to grow more than 60% of its competitors. Capital Growth is also above 45% of competitors with a rank of 89, and Stock Returns with the rank of 87 is also an outperformance. Only Profit Growth is low with a rank of 45 which means that currently, professionals expect the company to grow its profits less than 55% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 95, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Segro is a good growth stock. ...read more

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Safety Strategy: Segro Debt Financing Safety very solid

SAFETY METRICS	September 5, 2024
LEVERAGE
LEVERAGE	60
REFINANCING
REFINANCING	63
LIQUIDITY
LIQUIDITY	70
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	83

ANALYSIS: With an Obermatt Safety Rank of 83 (better than 83% compared with alternatives) for 2024, the company Segro has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Segro 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, where all three are above average for Segro. Leverage is at 60, meaning the company has a below-average debt-to-equity ratio. It has less debt than 60% of its competitors. Refinancing is at a rank of 63, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Finally, Liquidity is also good at a rank of 70, which means that the company generates more profit to service its debt than 70% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 83 (better than 83% compared with alternatives), Segro has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Segro Top Financial Performance

COMBINED PERFORMANCE	September 5, 2024
VALUE
VALUE	10
GROWTH
GROWTH	95
SAFETY
SAFETY	70
COMBINED
COMBINED	78

ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Segro (REITs: Industrials, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Segro are low in value (priced high) with a consolidated Value Rank of 10 (worse than 90% of alternatives). But they show above-average growth (Growth Rank of 95) and are safely financed (Safety Rank of 83, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Segro's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Segro exhibits low value (Obermatt Value Rank of 10), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 95). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 83) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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