Cambridge Technology Enterprises downgraded to 'Sell' by MarketsMOJO due to poor long-term growth and declining profits

Cambridge Technology Enterprises, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 13, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of -10.55% over the last 5 years. In addition, the company declared negative results in June 2024 after flat results in March 2024. The interest and profit after tax have also shown a decline, with a growth rate of 133.33% and a fall of -545.4%, respectively. The debt-equity ratio is also at its highest at 1.07 times.
Technically, the stock is in a Mildly Bearish range and has deteriorated from Mildly Bullish on November 13, 2024, generating -2.85% returns since then. Multiple factors, such as MACD, Bollinger Band, and KST, are also indicating a bearish trend for the stock.

However, the company has a strong ability to service debt, with a low Debt to EBITDA ratio of 0.99 times. It also has a Very Attractive valuation with a 1.4 Enterprise value to Capital Employed and is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 40.34%, while its profits have risen by 213.6%. The PEG ratio of the company is also at a low of 0.3.

Majority shareholders of Cambridge Technology Enterprises are non-institutional investors, and the stock has outperformed the market (BSE 500) with a return of 40.34% in the last year, compared to the market's return of 26.05%. While the stock may not be performing well currently, it has shown strong potential in the past and may be worth keeping an eye on for future growth.