December 19, 2024
Top 10 Stock SFC Energy Strong Buy 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: SFC Energy – Top 10 Stock in Germany CDAX
SFC Energy is listed as a top 10 stock on December 19, 2024 in the market index CDAX because of its high performance in at least one of the Obermatt investment strategies. Three consolidated Obermatt Ranks are above-average. Only the Value Rank is below average. The investment rationale may be an investment in future growth, supported by professional market opinion. Based on the Obermatt 360° View of 89 (top 89% performer), Obermatt assesses an overall strong buy recommendation for SFC Energy on December 19, 2024.
Snapshot: Obermatt Ranks
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 SFC Energy Strong Buy
| 360 METRICS | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 25 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 75 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 96 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 98 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 89 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 89 (better than 89% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock SFC Energy are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for SFC Energy. The consolidated Growth Rank has a good rank of 75, 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 75% of competitors in the same industry. The consolidated Safety Rank at 96 means that the company has a financing structure that is safer than 96% 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 98, which means that professional investors are more optimistic about the stock than for 98% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 25, meaning that the share price of SFC Energy is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 75% of alternative stocks in the same industry. ...read more
RECOMMENDATION: With a consolidated 360° View of 89, SFC Energy is better positioned than 89% 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 75), a safe financing structure (Safety Rank of 96), and positive professional market sentiment (Sentiment Rank of 98), 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 SFC Energy compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (75% better than peers). The value rank could be the reverse reflection of that (25%). 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
Sentiment Strategy: Professional Market Sentiment for SFC Energy very positive
ANALYSIS: With an Obermatt Sentiment Rank of 98 (better than 98% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock SFC Energy is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for SFC Energy. Analyst Opinions are at a rank of 93 (better than 93% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. In addition, Analyst Opinions Change has a rank of 82, which means that currently, stock research experts are getting even more optimistic. Obermatt Market Pulse further supports this with a rank of 85, which means that the current professional news and professional social networks are generally positive when discussing this company (more positive news than for 85% of competitors). But there are few stock holdings by institutional investors. The Professional Investors rank is low at 42, which means that currently, professional investors hold less stock in this company than in 58% of alternative investment opportunities. Pros tend to invest in other companies. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 98 (more positive than 98% compared with investment alternatives), SFC Energy has a reputation among professional investors that is significantly higher than that of its competitors. Not having too many professionals invested in SFC Energy may be less of an issue, especially if the stock is from a smaller company where professionals typically invest less. It is natural for professional investors to focus on large and extra-large companies, as they provide more safety. Smaller companies attract fewer professionals in the shareholder community. Overall, the signals from the professionals are still quite favorable for investments in SFC Energy. ...read more
Value Strategy: SFC Energy Stock Price Value below-average critical
ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), SFC Energy shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for SFC Energy. Price-to-Sales is 43 which means that the stock price compared with what market professionals expect for future profits is higher than 57% of comparable companies, indicating a low value concerning SFC Energy's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 43, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of SFC Energy. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 40 and Dividend Yield, which is lower than 99% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on SFC Energy's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for SFC Energy? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as SFC Energy? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. SFC Energy may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more
Growth Strategy: SFC Energy Growth Momentum high
| GROWTH METRICS | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 85 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 25 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 58 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 65 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 75 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, SFC Energy 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 SFC Energy. Sales Growth has a rank of 85 which means that currently, professionals expect the company to grow more than 85% of its competitors. Capital Growth is also above 25% of competitors with a rank of 58, and Stock Returns with the rank of 65 is also an outperformance. Only Profit Growth is low with a rank of 25 which means that currently, professionals expect the company to grow its profits less than 75% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, 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, SFC Energy is a good growth stock. ...read more
Safety Strategy: SFC Energy Debt Financing Safety very solid
| SAFETY METRICS | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 89 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 67 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 72 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 96 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2024, the company SFC Energy has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of SFC Energy 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 SFC Energy. Leverage is at 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors. Refinancing is at a rank of 67, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Finally, Liquidity is also good at a rank of 72, which means that the company generates more profit to service its debt than 72% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), SFC Energy 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
Combined financial peformance: SFC Energy Top Financial Performance
| COMBINED PERFORMANCE | December 19, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 25 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 75 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 72 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 89 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), SFC Energy (Electr. Components & Equipment, Germany) shares have much better financial characteristics than comparable stocks. Shares of SFC Energy are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives). But they show above-average growth (Growth Rank of 75) and are safely financed (Safety Rank of 96, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on SFC Energy's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company SFC Energy exhibits low value (Obermatt Value Rank of 25), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 75). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 96) 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
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.