TCFC Finance Receives 'Sell' Rating from MarketsMOJO, Weak Fundamentals and Growth Cited

TCFC Finance, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on September 3rd, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 5.33%. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of 18.04% and operating profit at -28.69%.
Despite declaring positive results for the last 5 consecutive quarters, TCFC Finance's PAT (HY) has only grown at 84.19% and NET SALES (HY) at 58.90%. The stock is currently trading in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend.

With an ROE of 11, the stock is fairly valued with a price to book value of 0.7. It is also trading at a fair value compared to its average historical valuations. However, while the stock has generated a return of 100.13% in the past year, its profits have only risen by 108.8%, resulting in a PEG ratio of 0.1.

The majority shareholders of TCFC Finance are its promoters, indicating their confidence in the company's performance. In fact, the stock has not only shown market-beating performance in the long term but also in the near term. It has outperformed BSE 500 in the last 3 years, 1 year, and 3 months, making it a potential investment opportunity for those looking for a microcap stock in the finance industry. However, with the recent downgrade, investors should carefully consider their options before making any decisions.