Milestone Global Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and Debt-Servicing Ability

Milestone Global, a microcap company in the mining and minerals industry, has recently received a 'Sell' rating from MarketsMOJO on February 16, 2024. This downgrade is based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 4.67%, poor long-term growth in net sales and operating profit, and a weak ability to service its debt with a low EBIT to Interest ratio.
In addition, the company's recent results in December 2023 have been flat. However, there are some positive technical indicators for the stock, as it is currently in a bullish range and has shown improvement since February 9, 2024, generating a return of 10.34%. Other bullish factors include MACD, Bollinger Band, and KST.

Despite these positive technical indicators, the stock is currently trading at a discount compared to its historical valuations and has a fair valuation with a price to book value of 1.4. Additionally, while the stock has generated a return of 96.17% in the past year, its profits have only risen by 57%, resulting in a low PEG ratio of 0.1.

It is worth noting that the majority shareholders of Milestone Global are promoters, indicating their confidence in the company's long-term performance. In fact, the stock has not only outperformed the BSE 500 in the past year, but also in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance.

Overall, while Milestone Global may have some positive technical indicators, the company's weak long-term fundamentals and debt-servicing ability make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap stock.