MarketsMOJO Downgrades Standard Industries to 'Sell' Due to Poor Growth and Financial Results

Sep 02 2024 06:18 PM IST
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Standard Industries, a microcap trading company, has received a 'Sell' rating from MarketsMojo due to its poor long-term growth and recent financial results. The company's stock is considered risky with negative EBITDA and a low return on capital employed. Despite high institutional holdings, caution is advised for investors.
Standard Industries, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on September 2, 2024. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -2.22% over the last 5 years.

In addition, the company's recent financial results for June 2024 have been flat, with a significant decrease in profits and the lowest return on capital employed and dividend payout ratio. The stock is also considered risky due to its negative EBITDA and high dividend yield of 3.7%.

Furthermore, Standard Industries has underperformed the market in the last year, with a return of only 17.99% compared to the market's 38.49%. The company also has a low debt to equity ratio and is currently in a mildly bullish range according to technical indicators such as MACD, Bollinger Band, and KST.

One positive aspect for the company is its high institutional holdings at 42.91%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals. However, with the recent downgrade and overall poor performance, it may be wise for investors to approach Standard Industries with caution.
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