Fact based stock research
SM Investments (PSE:SM)

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How to read the free 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.

SM Investments stock research in summary

sminvestments.com

ANALYSIS: With an Obermatt Combined Rank of 3 (worse than 97% compared with investment alternatives), SM Investments (Industrial Conglomerates, Philippines) shares have lower financial characteristics compared with similar stocks. Shares of SM Investments are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives), show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 9), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 3, is a sell recommendation based on SM Investments's financial characteristics. As the company SM Investments's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 49), low growth (Obermatt Growth Rank of 13), and risky financing practices (Obermatt Safety Rank of 9), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	Philippines
Industry	Industrial Conglomerates
Index	Low Emissions, Good Governace Growth Markets, Water Efficiency
Size class	X-Large

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Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: SM Investments

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	5	31	43	n/a
GROWTH
GROWTH	11	43	19	n/a
SAFETY
SAFETY	18	16	12	n/a
SENTIMENT
SENTIMENT	n/a	91	96	^new
360° VIEW
360° VIEW	n/a	25	25	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better SM Investments is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	5	31	43	n/a
GROWTH
GROWTH	11	43	19	n/a
SAFETY
SAFETY	18	16	12	n/a
COMBINED
COMBINED	1	4	4	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of SM Investments the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), SM Investments 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 SM Investments. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 64 which means that the stock price compared with what market professionals expect for future profits is lower than for 64% of comparable companies, indicating a good value concerning SM Investments's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 52, and for Dividend Yield with a Dividend Yield Rank of 60. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 57% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 43). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on SM Investments's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that SM Investments has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing SM Investments shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	13	37	46	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	28	41	69	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	16	43	52	n/a
DIVIDEND YIELD
DIVIDEND YIELD	18	39	54	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	5	31	43	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of SM Investments; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), SM Investments shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for SM Investments. While Profit Growth has a good rank of 52, as professionals currently expect the company to grow its profits more than 52% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 28, which means that currently professionals expect the company to grow less than 72% of its competitors, while Capital Growth has a rank of 10 and Stock Returns have been below market median, with a rank of 21 (79% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	8	73	40	n/a
PROFIT GROWTH
PROFIT GROWTH	n/a	61	56	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	35	16	n/a
STOCK RETURNS
STOCK RETURNS	40	19	29	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	11	43	19	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of SM Investments.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 9 (better than 9% compared with alternatives), the company SM Investments has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of SM Investments 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 all three metrics below average for SM Investments. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Finally, Refinancing is at a rank of 7 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 93% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 9 (worse than 91% compared with alternatives), SM Investments has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of SM Investments because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	40	30	34	n/a
REFINANCING
REFINANCING	38	28	12	n/a
LIQUIDITY
LIQUIDITY	29	37	48	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	18	16	12	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of SM Investments and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	14	72	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	67	83	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	91	86	^new
MARKET PULSE
MARKET PULSE	n/a	93	63	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	91	96	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for SM Investments.
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