March 14, 2024
Top 10 Stock Sixt Hold 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: Sixt – Top 10 Stock in Customer Satisfaction Leaders in Europe
Sixt is listed as a top 10 stock on March 14, 2024 in the market index Customer Focus EU because of its high performance in at least one of the Obermatt investment strategies. Two consolidated Obermatt Ranks are above-average. While the company shows high growth, the stock price is high yet professional investor sentiment is low, which may be due to overly optimistic investor behavior, reflected in a low stock price value. Based on the Obermatt 360° View of 34 (34% performer), Obermatt assesses an overall hold recommendation for Sixt on March 14, 2024.
Snapshot: Obermatt Ranks
| Country | Germany |
| Industry | Trucking |
| Index | CDAX, Customer Focus EU, Sound Pay Europe, SDAX |
| Size class | X-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 Sixt Hold
| 360 METRICS | March 14, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 44 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 60 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 83 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 43 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 34 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 34 (better than 34% compared with alternatives), overall professional sentiment and financial characteristics for the stock Sixt are below the industry average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for Sixt. The consolidated Growth Rank has a good rank of 60, 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 60% of competitors in the same industry. In addition, the consolidated Safety Rank has a safer rank of 83 which 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. But the consolidated Value Rank has a less desirable rank of 44 which means that the share price of Sixt is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is higher than for 56% of alternative stocks in the same industry. The consolidated Sentiment Rank also has a low rank of 43, which means that professional investors are more pessimistic about the stock than for 57% of alternative investment opportunities. ...read more
RECOMMENDATION: With a consolidated 360° View of 34, Sixt is worse than 66% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, the picture is ambiguous. Growth is above-average (Growth Rank of 60), and the company is safely financed (Safety Rank of 83). However, professional market sentiment is low(Sentiment Rank of 43). The negative market view on Sixt 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 board the train, they may drive stock prices above reasonable levels. It is typical for growth companies to have low value ratings, because 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 Sixt compared with alternatives? You can use the following rule of thumb: The value rank shouldn’t be lower than one hundred 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 if the value rank is above 60. As market sentiment is low, 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
Sentiment Strategy: Professional Market Sentiment for Sixt only reserved
ANALYSIS: With an Obermatt Sentiment Rank of 43 (better than 43% compared with alternatives), overall professional sentiment and engagement for the stock Sixt is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and half above average for Sixt. Analyst Opinions are at a rank of 72 (better than 72% 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 75, which means that the current professional news and professional social networks are positive when discussing this company (more positive news than for 75% of competitors). But Analyst Opinions Change is negative with a below 50 rank of 18, 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 Sixt. There are also only so many institutional investors holding company stock with a Professional Investors rank of 18, which means that, currently, professional investors hold less stock in this company than in 82% of alternative investment opportunities. Pros tend to invest in other companies. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 43 (less encouraging than 57% compared with investment alternatives), Sixt has a reputation among professional investors that is below 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: Sixt Stock Price Value below-average critical
ANALYSIS: With an Obermatt Value Rank of 44 (worse than 56% compared with alternatives), Sixt 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 below average for Sixt. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 61% 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 42 which means that the stock price compared with what market professionals expect for future profits is higher than 58% of comparable companies, indicating a low value concerning Sixt's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 37 which means that the stock price compared with what market professionals expect for future profit levels is higher than 63% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 41 is also low. Compared with invested capital, the stock price is higher than for 59% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 44, is a hold recommendation based on Sixt's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Sixt? 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 Sixt only if they reasonably expect the low current profit levels to be transitory. ...read more
Growth Strategy: Sixt Growth Momentum good
ANALYSIS: With an Obermatt Growth Rank of 60 (better than 60% compared with alternatives), Sixt 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 Sixt. Sales Growth has a rank of 81 which means that currently, professionals expect the company to grow more than 81% of its competitors. Capital Growth is also above 34% of competitors with a rank of 67. But Profit Growth only has a rank of 34, which means that currently professionals expect the company to grow its profits less than 66% of its competitors. And Stock Returns have also been below average with a rank of only 20. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 60, 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. ...read more
Safety Strategy: Sixt Debt Financing Safety very solid
| SAFETY METRICS | March 14, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 40 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 96 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 35 |
|
||||||
| 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 Sixt has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Sixt 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, with just one indicator above average for Sixt 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 40, meaning the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. Liquidity is also on the riskier side with a rank of 35, meaning the company generates less profit to service its debt than 65% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 83 (better than 83% compared with alternatives), Sixt has a financing structure that is significantly safer 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 Sixt 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: Sixt Below-Average Financial Performance
| COMBINED PERFORMANCE | March 14, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 44 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 60 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 35 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 35 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 35 (worse than 65% compared with investment alternatives), Sixt (Trucking, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Sixt are low in value (priced high) with a consolidated Value Rank of 44 (worse than 56% of alternatives). But they show above-average growth (Growth Rank of 60) and are safely financed (Safety Rank of 83, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 35, is a hold recommendation based on Sixt's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Sixt exhibits low value (Obermatt Value Rank of 44), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 60). 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
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.