Cubical Financial Services Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Cubical Financial Services, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 3.57%. Additionally, the company has shown poor long-term growth, with net sales declining at an annual rate of -6.34% and operating profit at 2.83%.
In terms of technical analysis, the stock is currently in a bullish range and the trend has improved from mildly bullish on November 4th, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, also indicate a bullish trend for the stock.

Despite this, the stock is trading at a fair valuation with a price to book value of 1.1 and is currently at a discount compared to its historical valuations. However, the company's profits have risen by 42% in the past year, resulting in a PEG ratio of 0.1.

It is worth noting that the majority of shareholders in Cubical Financial Services are non-institutional investors. This could potentially lead to a lack of stability in the stock's performance.

While the stock has generated a market-beating return of 71.43% in the past year, it has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. However, considering the company's weak long-term fundamentals and lack of institutional investors, MarketsMOJO has downgraded its stock call on Cubical Financial Services to 'Sell'.