Fact based stock research
Zug Estates (SWX:ZUGN)

CH0148052126

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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.

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Zug Estates stock research in summary

zugestates.ch

ANALYSIS: With an Obermatt Combined Rank of 26 (worse than 74% compared with investment alternatives), Zug Estates (Real Estate: Diversified Operations, Switzerland) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Zug Estates are low in value (priced high) with a consolidated Value Rank of 20 (worse than 80% of alternatives) and show below-average growth (Growth Rank of 18) but are safely financed (Safety Rank of 74), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 26, is a hold recommendation based on Zug Estates's financial characteristics. As the company Zug Estates's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 20) and low growth (Obermatt Growth Rank of 18), 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. In this case, good financing practices (Obermatt Safety Rank of 74) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for 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	20
Growth Rank	18
Safety Rank	74
Combined Rank	26

Country	Switzerland
Industry	Real Estate: Diversified Operations
Index	R/E Europe, SDG 11, SDG 12, SDG 13, SDG 7, SDG 9, SPI
Size class	X-Small

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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

Research History: Zug Estates

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	24	40	20
GROWTH
GROWTH	7	13	13	18
SAFETY
SAFETY	52	47	71	74
SENTIMENT
SENTIMENT	n/a	17	48	^new
360° VIEW
360° VIEW	n/a	7	24	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Zug Estates is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	19	24	40	20
GROWTH
GROWTH	7	13	13	18
SAFETY
SAFETY	52	47	71	74
COMBINED
COMBINED	4	8	26	26

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Zug Estates the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 20 (worse than 80% compared with alternatives), Zug Estates shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Zug Estates. Price-to-Sales is 28 which means that the stock price compared with what market professionals expect for future profits is higher than 72% of comparable companies, indicating a low value concerning Zug Estates's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 41, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Zug Estates. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 12 and Dividend Yield, which is lower than 56% 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 20, is a sell recommendation based on Zug Estates's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Zug Estates? 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 Zug Estates? 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. Zug Estates 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. 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 essential 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)	6	35	35	28
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	38	18	28	12
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56	59	53	41
DIVIDEND YIELD
DIVIDEND YIELD	62	20	63	44
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	24	40	20

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Zug Estates; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 18 (better than 18% compared with alternatives), Zug Estates 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 indicators below average for Zug Estates. Sales Growth has a below market rank of 44, which means that, currently, professionals expect the company to grow less than 56% of its competitors. The same is valid for Capital Growth, with a rank of 1, and Profit Growth, with a rank of 44. Currently, professionals expect the company to grow its profits less than 56% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 69, which means that the stock returns have recently been above 69% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 18, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Zug Estates, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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 low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	9	11	36	44
PROFIT GROWTH
PROFIT GROWTH	28	86	58	44
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	9	1
STOCK RETURNS
STOCK RETURNS	28	27	29	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	13	13	18

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Zug Estates.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% compared with alternatives), the company Zug Estates has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Zug Estates 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 two out of three indicators above average for Zug Estates. Leverage is at a rank of 80, meaning the company has a below-average debt-to-equity ratio. It has less debt than 80% of its competitors. Liquidity is also good at a rank of 78, meaning the company generates more profit to service its debt than 78% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 49, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 74 (better than 74% compared with alternatives), Zug Estates has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Zug Estates. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Zug Estates 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	63	78	74	80
REFINANCING
REFINANCING	23	3	37	49
LIQUIDITY
LIQUIDITY	42	75	76	78
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	52	47	71	74

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Zug Estates 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	20	59	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	9	6	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	38	74	^new
MARKET PULSE
MARKET PULSE	n/a	79	50	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	17	48	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Zug Estates.
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