Why is Accuracy Shippi. falling/rising?
As of 23-Sep, Accuracy Shipping Ltd's stock price is 7.28, up 0.41%, but it is underperforming in the long term with a 42.90% decline over the past year and significant challenges including a high debt-to-EBITDA ratio and a drop in profits. Despite a recent outperformance against its sector and attractive valuation metrics, investor sentiment remains negative due to weak fundamentals.
As of 23-Sep, Accuracy Shipping Ltd's stock price is currently at 7.28, reflecting an increase of 0.03 or 0.41%. The stock has outperformed its sector today by 1.24%, although it is trading below its 50-day, 100-day, and 200-day moving averages, indicating some weakness in longer-term trends. Over the past week, the stock has gained 0.97%, while its one-year return stands at a significant decline of 42.90%. Despite a very attractive valuation with a return on capital employed (ROCE) of 7.6 and trading at a discount compared to peers, the company has faced challenges, including a 61.3% drop in profits over the past year and a weak long-term fundamental strength characterized by a -13.63% CAGR growth in operating profits over the last five years.In the broader market context, the Sensex has shown a slight decline of 0.28% over the past week, while Accuracy Shipping Ltd has managed to outperform this benchmark. However, the stock's long-term performance has been concerning, with a significant underperformance against the BSE500 over the last three years, one year, and three months. The company's high debt-to-EBITDA ratio of 3.16 times and a low ability to service debt further exacerbate investor concerns, contributing to the stock's volatility and overall negative sentiment in the market.
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