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

On August 19, 2024, MarketsMOJO downgraded its stock call on Standard Industries to 'Sell'. This decision was based on the company's poor long-term growth, as its operating profit has declined by an annual 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 a low return on capital employed. The dividend payout ratio is also at a concerning level of -5,156.14%, indicating a negative EBITDA.

Furthermore, the stock is currently trading at a risky level compared to its historical valuations. While it has generated a return of 29.39% in the past year, its profits have fallen by -92%. This raises concerns about the company's financial stability.

Another factor to consider is the company's low debt to equity ratio, which is at 0 times on average. However, this may not be enough to offset the other negative indicators.

On a positive note, the stock is technically in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. Additionally, the company has a high institutional holding of 42.91%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals.

In conclusion, based on the current information, it is advisable to exercise caution when considering investing in Standard Industries. The company's poor long-term growth and recent financial results, along with its risky stock valuation, suggest that it may not be a wise investment at this time.