Current Rating Overview
On 12 February 2025, SJ Corp was assigned a 'Sell' rating by MarketsMOJO, accompanied by a Mojo Score of 33.0. This score places the company in the 'Sell' category, signalling caution for investors considering exposure to this stock. While the rating was established over 11 months ago, it remains relevant as it is grounded in fundamental and technical assessments that continue to influence the stock's outlook.
Understanding the 'Sell' Rating
The 'Sell' rating indicates that the stock is currently viewed as carrying higher risk relative to its potential returns. Investors are advised to approach SJ Corp with caution, as the company's financial health and market performance suggest challenges ahead. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals.
Quality Assessment
As of 28 January 2026, SJ Corp's quality grade is assessed as below average. The company continues to report operating losses, which undermine its long-term fundamental strength. Its ability to service debt remains weak, with an average EBIT to interest ratio of -0.01, indicating that earnings before interest and taxes are insufficient to cover interest expenses. Furthermore, the average Return on Equity (ROE) stands at a modest 1.20%, reflecting low profitability relative to shareholders' funds. These factors collectively suggest that the company faces significant operational and profitability challenges.
Valuation Considerations
The valuation grade for SJ Corp is classified as risky. The stock trades at levels that are considered elevated compared to its historical averages, which raises concerns about potential overvaluation. The latest data shows that profits have declined by 21% over the past year, while the stock's returns have remained flat at 0.00% during the same period. This combination of falling profitability and stagnant returns contributes to the cautious stance on valuation.
Financial Trend Analysis
Financially, SJ Corp's trend is flat as of 28 January 2026. The company reported flat results in the quarter ending September 2025, indicating a lack of growth momentum. Additionally, the absence of recent results over the last six months adds to the uncertainty surrounding the company's financial trajectory. The weak long-term fundamental strength, coupled with operating losses, suggests that the company is struggling to generate sustainable earnings growth.
Technical Outlook
From a technical perspective, the stock exhibits a mildly bullish grade. Despite the fundamental challenges, the stock price has shown some resilience, with a 1-day change of 0.00% and a 1-week decline of 5.00%. The 1-month performance is slightly negative at -0.21%, and the year-to-date return stands at -5.00%. These figures indicate limited upward momentum but also highlight volatility and uncertainty in the stock's price movements.
Stock Returns and Market Performance
As of 28 January 2026, SJ Corp's stock returns reflect a cautious market sentiment. The stock has experienced a 5.00% decline over the past week and a similar decrease year-to-date. The lack of data for the 3-month and 6-month periods further complicates a comprehensive assessment of medium-term performance. The flat one-year return underscores the challenges the company faces in delivering shareholder value.
Implications for Investors
For investors, the 'Sell' rating on SJ Corp suggests that the stock currently carries elevated risks without commensurate reward potential. The below-average quality, risky valuation, flat financial trend, and only mildly bullish technicals collectively advise caution. Investors seeking stable returns and growth may find more attractive opportunities elsewhere, while those with a higher risk tolerance should closely monitor the company’s developments and financial disclosures.
Summary
In summary, SJ Corp's 'Sell' rating reflects a comprehensive evaluation of its current financial and market position as of 28 January 2026. The company faces operational losses, weak debt servicing capacity, declining profitability, and valuation risks. Although the stock shows some technical resilience, the overall outlook remains cautious. Investors should weigh these factors carefully when considering SJ Corp for their portfolios.
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Company Profile and Market Capitalisation
SJ Corp is classified as a microcap company, which typically implies a smaller market capitalisation and potentially higher volatility. The absence of a defined sector or industry classification further complicates comparative analysis. Microcap stocks often face liquidity constraints and greater sensitivity to market fluctuations, factors that investors should consider alongside the company's fundamental and technical profile.
Debt Servicing and Profitability Challenges
The company's weak EBIT to interest ratio of -0.01 highlights its inability to generate sufficient operating earnings to cover interest expenses, signalling potential liquidity stress. This metric is critical for assessing financial stability, especially for companies with outstanding debt obligations. The low average ROE of 1.20% further emphasises limited profitability, suggesting that shareholder funds are not being effectively utilised to generate returns.
Recent Financial Results and Reporting Gaps
Flat results reported in September 2025 indicate stagnation in operational performance. Moreover, the lack of reported results over the last six months raises concerns about transparency and timely disclosure. Such gaps can hinder investors' ability to make informed decisions and may contribute to increased perceived risk.
Market Sentiment and Price Volatility
The stock's recent price movements, including a 5.00% decline over the past week and a similar year-to-date drop, reflect cautious market sentiment. The mildly bullish technical grade suggests some underlying support, but the absence of sustained upward momentum limits confidence in a near-term recovery. Investors should monitor price trends closely alongside fundamental developments.
Conclusion
Overall, SJ Corp's current 'Sell' rating by MarketsMOJO is supported by a combination of below-average quality, risky valuation, flat financial trends, and modest technical signals. The company's operational losses, weak debt servicing capacity, and declining profitability present significant challenges. While the stock shows some technical resilience, the overall outlook advises prudence. Investors should carefully evaluate their risk tolerance and investment horizon before considering SJ Corp as part of their portfolio.
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