MarketsMOJO Downgrades Mazda to 'Sell' Due to Poor Growth and Negative Financial Results

Mazda, a microcap engineering company, has recently been downgraded to a 'Sell' by MarketsMOJO on August 12, 2024. This decision was based on the company's poor long-term growth, with net sales growing at an annual rate of only 7.22% and operating profit at 17.58% over the last 5 years.
In addition, Mazda's recent financial results for the quarter ending in June 2024 have also been negative. The company's profit after tax has fallen by -62.3%, with the lowest net sales and PBDIT (profit before depreciation, interest, and taxes) in the same quarter.

Despite being a microcap company, Mazda has not attracted much interest from domestic mutual funds, with them holding only 0% of the company. This could be a sign that they are not comfortable with the company's current price or business.

Other factors to consider include Mazda's low debt to equity ratio and a sideways technical trend, indicating no clear price momentum. The stock's technical trend has also deteriorated from mildly bullish to -1.04% returns since August 12, 2024.

However, Mazda does have an attractive valuation with a price to book value of 2.6 and a return on equity of 13.8. It is currently trading at a fair value compared to its historical valuations. Despite generating a return of 33.89% over the past year, the company's profits have fallen by -7.4%.

Overall, with the recent downgrade and negative financial results, it may be wise for investors to approach Mazda's stock with caution.