MarketsMOJO Downgrades York Exports to 'Sell' Due to Weak Fundamentals and Underperformance

York Exports, a microcap textile company, has recently been downgraded to a 'Sell' by MarketsMOJO on March 6, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 6.99%, poor long-term growth in net sales and operating profit, and a high debt to EBITDA ratio of 4.05 times.
In addition, the company's results for December 2023 were flat and its ROCE for the half-year was at its lowest at 5.57%. York Exports has also underperformed the market in the last year, with a return of only 9.68% compared to the market's 36.15% return.

On a positive note, the stock is currently in a mildly bullish range and has shown improvement in its technical trend since March 4, 2024, with a return of -4.99%. Multiple factors, such as MACD, KST, and OBV, are also bullish for the stock.

With a ROCE of 5.4, York Exports is currently trading at an attractive valuation with an enterprise value to capital employed ratio of 1. This is a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 9.68% in the past year, its profits have fallen by 81%.

The majority shareholders of York Exports are the promoters, which may be a cause for concern for potential investors. Overall, MarketsMOJO's downgrade to 'Sell' for York Exports is based on factual data and should be taken into consideration before making any investment decisions.