Royal Orchid Hotels Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and Attractive Valuation

Royal Orchid Hotels, a smallcap company in the hotel industry, has recently received a 'Hold' rating from MarketsMOJO. The stock has shown a bullish trend and has improved from a mildly bullish position on April 1, 2024. This is due to multiple factors such as MACD, Bollinger Band, and KST being bullish.
One of the main reasons for the 'Hold' rating is the company's attractive valuation with a ROCE of 19.9 and a 3.9 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Despite a 40.14% return in the past year, the company's profits have only risen by 11.1%, resulting in a PEG ratio of 2.1.

Institutional investors have also shown an increasing interest in the company, with a 0.8% increase in their stake over the previous quarter. This is a positive sign as these investors have better resources and capabilities to analyze the fundamentals of companies compared to retail investors.

However, the company does have some weak points in its long-term fundamentals. The average ROCE over the last 5 years is only 7.73%, indicating poor long-term growth. Additionally, the company's ability to service its debt is weak with a low EBIT to Interest ratio of 0.90.

In terms of recent performance, the company's results for December 2023 were flat. Overall, while Royal Orchid Hotels has shown consistent returns over the last 3 years and has a bullish trend, its long-term fundamentals and recent performance suggest a 'Hold' rating for now.