Fact based stock research
Suncorp (ASX:SUN)
AU000000SUN6
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.
Suncorp stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Suncorp (Property & Casualty Insurance, Australia) shares have much better financial characteristics than comparable stocks. Shares of Suncorp are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives), and are riskily financed (Safety Rank of 36, which means above-average debt burdens) but show above-average growth (Growth Rank of 55). ...read more
RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Suncorp's financial characteristics. As the company Suncorp shows low value with an Obermatt Value Rank of 33 (67% 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 55% of comparable companies (Obermatt Growth Rank is 55). 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 36 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 Suncorp, 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° ViewnewThis stock has achievements: Top 10 Stock.
14-Nov-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: Suncorp
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 54 |
|
51 |
|
45 |
|
33 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
33 |
|
63 |
|
55 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
36 |
|
36 |
|
36 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
90 |
|
59 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
73 |
|
92 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Suncorp (Property & Casualty Insurance, Australia) shares have much better financial characteristics than comparable stocks. Shares of Suncorp are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives), and are riskily financed (Safety Rank of 36, which means above-average debt burdens) but show above-average growth (Growth Rank of 55). ...read more
RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Suncorp's financial characteristics. As the company Suncorp shows low value with an Obermatt Value Rank of 33 (67% 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 55% of comparable companies (Obermatt Growth Rank is 55). 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 36 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 Suncorp, 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 | 54 |
|
51 |
|
45 |
|
33 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
33 |
|
63 |
|
55 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
36 |
|
36 |
|
36 |
|
| COMBINED | ||||||||
| COMBINED | 12 |
|
82 |
|
82 |
|
82 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), Suncorp shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Suncorp. Price-to-Sales (P/S) is 71, which means that the stock price compared with what market professionals expect for future sales is lower than for 71% of comparable companies, indicating a good value concerning Suncorp's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 52, which means that dividends are expected to be higher than for 52% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 73% of alternatives (only 27% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 81% 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 33, is a hold recommendation based on Suncorp's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. 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) | 44 |
|
69 |
|
71 |
|
71 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 42 |
|
27 |
|
36 |
|
19 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 63 |
|
44 |
|
39 |
|
27 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 80 |
|
84 |
|
60 |
|
52 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 54 |
|
51 |
|
45 |
|
33 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Suncorp 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 all but one indicator above average for Suncorp. Sales Growth has a rank of 67 which means that currently, professionals expect the company to grow more than 67% of its competitors. Capital Growth is also above 10% of competitors with a rank of 67, and Stock Returns with the rank of 69 is also an outperformance. Only Profit Growth is low with a rank of 10 which means that currently, professionals expect the company to grow its profits less than 90% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, 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, Suncorp is a good growth stock. 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. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 18 |
|
56 |
|
70 |
|
67 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 19 |
|
6 |
|
45 |
|
10 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
59 |
|
47 |
|
67 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 44 |
|
49 |
|
65 |
|
69 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 24 |
|
33 |
|
63 |
|
55 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 36 (better than 36% compared with alternatives), the company Suncorp 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 Suncorp 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, where all three are above average for Suncorp. Leverage is at 65, meaning the company has a below-average debt-to-equity ratio. It has less debt than 65% of its competitors. Refinancing is at a rank of 64, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 64% of its competitors. Finally, Liquidity is also good at a rank of 89, which means that the company generates more profit to service its debt than 89% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 36 (worse than 64% compared with alternatives), Suncorp has a financing structure that is riskier 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. Investors may not have a debt issue with Suncorp but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 4 |
|
20 |
|
4 |
|
65 |
|
| REFINANCING | ||||||||
| REFINANCING | 1 |
|
64 |
|
64 |
|
64 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 21 |
|
44 |
|
40 |
|
89 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 1 |
|
36 |
|
36 |
|
36 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
58 |
|
95 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
82 |
|
40 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
78 |
|
51 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
56 |
|
54 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
90 |
|
59 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Suncorp from November 14, 2024.
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