After lending activity revives, capital-intensive companies will become attractive
Unless the picture of the financial sector changes, Erste Group analysts believe that capital-intensive business models will continue to underperform.
Having said that, it is also clear that, as soon as the picture brightens with regard to financing conditions, capital-intensive stocks will be the best places to look for outperformers. They estimate that these stocks could be the outperformers once financing conditions brighten.
The tables show that the capital-intensive group (-60.1%) showed a significantly weaker share price performance over the last 12 months compared to the least capital-intensive stocks in our universe (-37%).
Only Telekom Austria stands out in the group of stocks that are quite highly indebted and capital-intensive, showing a quite strong performance, losing just 21.4%. This reflects the expected stable cash flow pattern.
Having said that, it is also clear that, as soon as the picture brightens with regard to financing conditions, capital-intensive stocks will be the best places to look for outperformers. They estimate that these stocks could be the outperformers once financing conditions brighten.
The tables show that the capital-intensive group (-60.1%) showed a significantly weaker share price performance over the last 12 months compared to the least capital-intensive stocks in our universe (-37%).
Only Telekom Austria stands out in the group of stocks that are quite highly indebted and capital-intensive, showing a quite strong performance, losing just 21.4%. This reflects the expected stable cash flow pattern.