Rexnord Electronics & Controls Receives 'Sell' Rating from MarketsMOJO, Poor Long-Term Growth and Underperformance in Market

Rexnord Electronics & Controls, a microcap company in the consumer durables industry, has recently received a 'Sell' rating from MarketsMOJO on September 10, 2024. This downgrade is based on the company's poor long-term growth, with net sales growing at an annual rate of only 9.10% and operating profit at 17.97% over the last 5 years.
In addition, the company's results for June 2024 have been flat, with a decrease in profits of -22.61% and a low return on capital employed (ROCE) of 13.72%. The debtors turnover ratio is also at its lowest at 14.84 times. These factors have contributed to the stock underperforming the market (BSE 500) in the last year, with negative returns of -6.18% compared to the market's 34.61% returns.

Other factors to consider include the company's low debt to equity ratio of 0.05 times and a technical trend that is currently sideways, indicating no clear price momentum. The stock is also trading at a premium compared to its historical valuations, with a price to book value of 2.1 and a return on equity (ROE) of 10.6, which is considered fair.

It is worth noting that the majority shareholders of Rexnord Electronics & Controls are the promoters of the company. While the stock has generated negative returns in the past year, the profits have also fallen by -18.9%. This information, along with the company's current financial performance, may be important for investors to consider before making any decisions regarding the stock.