MarketsMOJO Downgrades Samhi Hotels to 'Sell' Due to Weak Fundamentals and High Debt

MarketsMOJO has downgraded its stock call on Samhi Hotels to 'Sell' due to weak long-term fundamental strength and poor growth. The company's average Return on Capital Employed (ROCE) of 5.07% and annual operating profit growth rate of 8.04% over the last 5 years are concerning factors. Additionally, the high Debt to EBITDA ratio of 7.41 times indicates a low ability to service debt.
The stock's valuation is also deemed as very expensive with a 2.1 Enterprise value to Capital Employed. Despite generating a return of 30.29% in the past year, the company's profits have only risen by 55%. However, there are some positive factors to note, such as a growth in operating profit of 23.16% and positive results for the last 3 consecutive quarters.

The stock is currently in a mildly bullish range and a key technical factor, KST, has been bullish since 14 Oct 2024. It is also worth mentioning that the company has high institutional holdings at 81.25%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals compared to retail investors.

Overall, MarketsMOJO's downgrade to 'Sell' for Samhi Hotels is based on fact-based analysis and not influenced by future potential, investor interest, or expert opinions. Investors should carefully consider the company's weak long-term fundamentals and growth before making any investment decisions.