Cubical Financial Services Receives 'Sell' Rating from MarketsMOJO, Weak Fundamentals and Declining Growth Cited

Cubical Financial Services, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on October 1st, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 2.68%. Additionally, the company has shown poor long-term growth, with net sales declining at an annual rate of -6.34% and operating profit at -13.65%.
Despite being in a bullish range, the stock's technical trend has improved from mildly bullish to -3.91% returns since September 23rd, 2024. The MACD and KST technical factors also indicate a bullish trend for the stock.

With a ROE of 5, Cubical Financial Services is currently fairly valued with a price to book value of 1. The stock is also trading at a discount compared to its average historical valuations. However, despite generating a return of 56.74% in the past year, the company's profits have only risen by 42%, resulting in a low PEG ratio of 0.1.

The majority of the company's shareholders are non-institutional investors. Despite this, Cubical Financial Services has outperformed the market (BSE 500) with a return of 56.74% in the last year, compared to the market's return of 39.61%.

While the stock may have shown strong performance in the past year, the recent downgrade by MarketsMOJO suggests that investors should approach with caution and carefully consider the company's long-term growth potential before making any investment decisions.