S.M. Gold Receives 'Hold' Rating from MarketsMOJO, Technical Trend Improves and ROCE at Discount

S.M. Gold, a microcap company in the diamond and gold jewellery industry, has recently received a 'Hold' rating from MarketsMOJO on October 7th, 2024. This upgrade is based on the company's technical trend, which has improved from Mildly Bullish to Bullish, resulting in a 1.99% return since October 4th.
In addition, the company's MACD and KST technical factors are also showing a Bullish trend. With a ROCE of 6.1, S.M. Gold is currently trading at a discount compared to its average historical valuations, making it a very attractive investment opportunity.

However, despite the stock's impressive return of 82.38% in the last year, its profits have fallen by -8.1%. This could be a cause for concern for investors, as the company's long-term fundamental strength is weak due to operating losses and poor growth in operating profit over the last 5 years.

Furthermore, S.M. Gold has a high debt to EBITDA ratio of 9.72 times, indicating a low ability to service debt. In the latest quarter, the company's PBDIT and EPS were at their lowest, with operating profit to net sales also showing a decline.

Overall, while S.M. Gold has shown market-beating performance in the past year, its financials and long-term growth potential may be a cause for caution. Investors are advised to carefully consider all factors before making any investment decisions.