Fact based stock research
Sezzle (ASX:SZL)
AU0000050981
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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.
Sezzle stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 9 (worse than 91% compared with investment alternatives), Sezzle (Data Processing & Outsourcing, USA) shares have lower financial characteristics compared with similar stocks. Shares of Sezzle are low in value (priced high) with a consolidated Value Rank of 14 (worse than 86% of alternatives), and are riskily financed (Safety Rank of 28, which means above-average debt burdens) but show above-average growth (Growth Rank of 53). ...read more
RECOMMENDATION: A Combined Rank of 9, is a sell recommendation based on Sezzle's financial characteristics. As the company Sezzle shows low value with an Obermatt Value Rank of 14 (86% 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 53% of comparable companies (Obermatt Growth Rank is 53). 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 28 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 Sezzle, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Data Processing & Outsourcing |
| Index | ASX 300 |
| Size class | Small |
2-May-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Sezzle
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | n/a |
|
21 |
|
36 |
|
14 |
|
| GROWTH | ||||||||
| GROWTH | n/a |
|
7 |
|
37 |
|
53 |
|
| SAFETY | ||||||||
| SAFETY | n/a |
|
45 |
|
23 |
|
28 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
29 |
|
21 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
5 |
|
7 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 9 (worse than 91% compared with investment alternatives), Sezzle (Data Processing & Outsourcing, USA) shares have lower financial characteristics compared with similar stocks. Shares of Sezzle are low in value (priced high) with a consolidated Value Rank of 14 (worse than 86% of alternatives), and are riskily financed (Safety Rank of 28, which means above-average debt burdens) but show above-average growth (Growth Rank of 53). ...read more
RECOMMENDATION: A Combined Rank of 9, is a sell recommendation based on Sezzle's financial characteristics. As the company Sezzle shows low value with an Obermatt Value Rank of 14 (86% 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 53% of comparable companies (Obermatt Growth Rank is 53). 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 28 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 Sezzle, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | n/a |
|
21 |
|
36 |
|
14 |
|
| GROWTH | ||||||||
| GROWTH | n/a |
|
7 |
|
37 |
|
53 |
|
| SAFETY | ||||||||
| SAFETY | n/a |
|
45 |
|
23 |
|
28 |
|
| COMBINED | ||||||||
| COMBINED | n/a |
|
1 |
|
4 |
|
9 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 14 (worse than 86% compared with alternatives), Sezzle shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Sezzle. Price-to-Sales (P/S) is 61, which means that the stock price compared with what market professionals expect for future sales is lower than 61% of comparable companies, indicating a good value concerning to Sezzle's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 91% of alternatives (only 9% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 58% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 14, is a sell recommendation based on Sezzle's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Sezzle could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Sezzle looks like an expensive investment today. 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 especially important 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) | n/a |
|
73 |
|
84 |
|
61 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | n/a |
|
57 |
|
24 |
|
42 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | n/a |
|
14 |
|
41 |
|
9 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | n/a |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | n/a |
|
21 |
|
36 |
|
14 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Sezzle 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 Sezzle. Sales Growth has a rank of 83 which means that currently, professionals expect the company to grow more than 83% of its competitors. Capital Growth is also above 11% of competitors with a rank of 83. But Profit Growth only has a rank of 11, which means that currently professionals expect the company to grow its profits less than 89% of its competitors. And Stock Returns have also been below average with a rank of only 30. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. 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 | n/a |
|
94 |
|
47 |
|
83 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
1 |
|
29 |
|
11 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
1 |
|
16 |
|
83 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | n/a |
|
7 |
|
87 |
|
30 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | n/a |
|
7 |
|
37 |
|
53 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company Sezzle 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 Sezzle 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 Sezzle and the other two below average. Refinancing is at 96, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 96% of its competitors. But Leverage is high with a rank of 10, meaning the company has an above-average debt-to-equity ratio. It has more debt than 90% of its competitors. Liquidity is also on the riskier side with a rank of 34, meaning the company generates less profit to service its debt than 66% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), Sezzle 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 Sezzle 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. In the long-term, investors may have a debt challenge with Sezzle 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 | n/a |
|
64 |
|
10 |
|
10 |
|
| REFINANCING | ||||||||
| REFINANCING | n/a |
|
70 |
|
100 |
|
96 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | n/a |
|
6 |
|
15 |
|
34 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | n/a |
|
45 |
|
23 |
|
28 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
31 |
|
14 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
92 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
50 |
|
23 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
2 |
|
65 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
29 |
|
21 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Sezzle from May 2, 2024.
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