MarketsMOJO Downgrades TCFC Finance to 'Sell' Due to Weak Long-Term Fundamentals

TCFC Finance, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. 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, the company's PAT (HY) has only grown at 84.19% and NET SALES (HY) at 58.90%. Technically, the stock is 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 currently trading at a fair valuation with a 0.7 price to book value. It is also trading at a fair value compared to its average historical valuations. However, despite generating a return of 81.65% in the past year, the company's profits have only risen by 108.8%, resulting in a low 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 has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

Overall, while TCFC Finance may have shown some positive results in the recent past, its weak long-term fundamentals and poor growth rate make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.