Sanco Trans Faces Evaluation Downgrade Amid Weak Financial Fundamentals and Growth Challenges

Sanco Trans, a microcap company in the transport services industry, has recently experienced an adjustment in its evaluation. The quality grade has shifted from average to below average, reflecting underlying trends in its financial metrics. Over the past five years, the company has reported a sales growth rate of 4.98% and an EBIT growth rate of 3.74%. The EBIT to interest ratio stands at 1.57, indicating challenges in servicing debt obligations, while the debt to EBITDA ratio is recorded at 2.63.
In terms of capital efficiency, the sales to capital employed ratio is at 0.89, and the net debt to equity ratio is notably low at 0.08. The tax ratio is reported at 29.88%, with a dividend payout ratio of 23.51%. The company has not pledged any shares, and institutional holding is at 0.00%. Return on capital employed (ROCE) averages at 2.11%, while return on equity (ROE) averages at 2.51%.

Despite some positive financial performance in the recent quarter, the overall long-term fundamental strength appears weak, as indicated by the average ROE and modest growth rates.

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