Forbes & Company Downgraded to 'Sell' by MarketsMOJO Due to High Debt and Poor Growth.

Forbes & Company, a microcap engineering company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 7, 2024. This decision was based on several factors, including the company's high debt to EBITDA ratio of 5.61 times, indicating a low ability to service debt. Additionally, the company has shown poor long-term growth with a decline in net sales by an annual rate of -41.10% and operating profit at -23.16% over the last 5 years.
In the most recent quarter, Forbes & Company reported negative results with a 20.6% decrease in net sales and a 46.2% decrease in PBT LESS OI. The company's PAT also fell by 5.8%. With a ROE of 16, the stock is currently trading at a very expensive valuation with a price to book value of 6.2. However, it is currently trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 158.17%, but its profits have fallen by -42.1%. This has resulted in a PEG ratio of 1.1, indicating that the stock may be overvalued. Additionally, 98.25% of the promoter shares are pledged, which can put additional downward pressure on the stock prices in falling markets.

On a positive note, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish. Forbes & Company has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, considering the current financial situation and market conditions, MarketsMOJO has downgraded the stock to a 'Sell' and recommends caution for potential investors.