Cheviot Company Receives 'Sell' Rating from MarketsMOJO Amidst Poor Long-Term Growth

Cheviot Company, a microcap textile company, has recently received a 'Sell' rating from MarketsMOJO on February 8, 2024. This downgrade is based on the company's poor long-term growth, with net sales and operating profit only growing at an annual rate of 3.67% and 3.81% respectively over the last 5 years.
In addition, the company has declared negative results for the past 8 consecutive quarters, with its cash and cash equivalents at a low of Rs 4.91 crore and net sales at Rs 98.41 crore. Its PBDIT (profit before depreciation, interest, and taxes) is also at a low of Rs 9.24 crore.

Despite being a microcap company, domestic mutual funds hold only 0.01% of the company, which could indicate that they are not comfortable with the company's current price or business.

On the positive side, Cheviot Company has a low debt to equity ratio and its stock is currently in a mildly bullish range. Its MACD and KST technical factors are also bullish. With a return on equity of 11.5, the company has a fair valuation with a price to book value of 1.4. It is also trading at a fair value compared to its historical valuations.

However, it is important to note that while the stock has generated a return of 26.81% over the past year, its profits have only risen by 22.1%. This gives the company a PEG ratio of 0.6, which could be a cause for concern.

In conclusion, while Cheviot Company may have some positive aspects, the recent 'Sell' rating from MarketsMOJO and the company's overall performance over the past few years may warrant caution for potential investors.