Hexa Tradex Downgraded to 'Sell' by MarketsMOJO: High Debt and Low Profitability Raise Concerns

Hexa Tradex, a smallcap trading company, has recently been downgraded to a 'Sell' by MarketsMOJO on August 6, 2024. This decision was based on several factors, including the company's high debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt. Additionally, the company's return on equity (avg) of 0.26% suggests a low profitability per unit of shareholders' funds.
Furthermore, Hexa Tradex has declared negative results in June 2024 after two consecutive positive quarters. Its net sales for the past nine months have decreased by -57.37%, while its profits have fallen by -51.31%. The company's PBT less OI (Q) has also fallen by -115.2%. With a ROE of 2.4, the stock is currently trading at a very expensive valuation with a price to book value of 0.3. However, it is currently trading at a discount compared to its average historical valuations.

Despite its healthy long-term growth, with net sales growing at an annual rate of 153.31% and operating profit at 148.33%, the stock is currently in a mildly bullish range. Its MACD and KST technical factors are also bullish. However, despite its market-beating performance of 45.05% in the last year, domestic mutual funds hold only 0.1% of the company, indicating a lack of confidence in either the stock's price or the business itself.

In conclusion, while Hexa Tradex may have shown strong growth in the past, its current financial situation and market performance suggest a 'Sell' rating. Investors should carefully consider these factors before making any decisions regarding this smallcap trading company.