MarketsMOJO Downgrades Rodium Realty to 'Sell' Due to High Debt and Poor Growth

Rodium Realty, a microcap company in the construction and real estate industry, has recently received a 'Sell' rating from MarketsMOJO on October 28, 2024. This downgrade is based on several factors, including the company's high debt-to-equity ratio of 6.31 times, indicating weak long-term fundamental strength. Additionally, the company has shown poor long-term growth with net sales only increasing by an annual rate of 2.24% and operating profit remaining stagnant at 0% over the last 5 years.
In the most recent quarter, Rodium Realty's net sales have fallen by 24.6% and its operating profit has decreased by 567.8%. The company also has a high debt-to-equity ratio, averaging at 0 times. However, the stock is currently in a mildly bullish range and has multiple bullish indicators such as MACD, Bollinger Band, KST, and OBV.

Despite its attractive valuation with a ROCE of 3.7 and an enterprise value to capital employed ratio of 1.2, the stock is trading at a discount compared to its historical valuations. In the past year, while the stock has generated a return of 85.45%, its profits have fallen by 34%. The majority shareholders of Rodium Realty are its promoters.

Despite its market-beating performance in the long term and near term, with a return of 85.45% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months, MarketsMOJO has downgraded the stock to 'Sell'. Investors should carefully consider these factors before making any investment decisions regarding Rodium Realty.