Universal Cables Sees Score Revision Amidst Mixed Financial Performance Universal Cables has recently undergone a revision in its score by MarketsMOJO, indicating a significant adjustment in its evaluation. The small-cap company, which operates within the cable industry, has encountered various challenges that have affected its long-term fundamental strength. The firm has reported an average Return on Capital Employed (ROCE) of 6.38%, showcasing weak performance metrics, particularly in growth, with net sales rising at an annual rate of 6.60% and operating profit at 4.33% over the last five years. The financial outlook for Universal Cables has also been influenced by a high Debt to EBITDA ratio of 4.79 times, suggesting a limited capacity to manage its debt obligations effectively. Recent financial results have not been encouraging, highlighted by a notable decline in profit after tax for the half-year ending September 2024. In spite of these hurdles, Universal Cables has been added to MarketsMOJO's list, and technical indicators are pointing towards a bullish trend, with the stock generating returns of 14.11% since mid-December. Furthermore, there has been an uptick in institutional investor interest, as they have increased their stakes in the company. However, the overall performance remains a concern, with profits decreasing by 4.7% over the past year.

Dec 30 2024 07:23 PM IST
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Universal Cables has recently experienced a revision in its score by MarketsMojo, reflecting concerns over its financial health. The company reported a notable decline in Profit After Tax and has a high Debt to EBITDA ratio, although it has shown some technical improvement and increased institutional interest.
Universal Cables has recently experienced a revision in its score by MarketsMOJO, reflecting a notable adjustment in its evaluation. The small-cap company, operating in the cable industry, has faced challenges that have influenced its long-term fundamental strength. With an average Return on Capital Employed (ROCE) of 6.38%, the company has shown weak performance metrics, particularly in terms of growth, with net sales increasing at an annual rate of 6.60% and operating profit at 4.33% over the past five years.

The financial landscape for Universal Cables has also been impacted by a high Debt to EBITDA ratio of 4.79 times, indicating a low ability to service its debt obligations. Recent results have not been favorable, with a significant decline in profit after tax for the half-year ending September 2024.

Despite these challenges, the stock has been added to MarketsMOJO's list, and technical indicators suggest a bullish trend, having generated returns of 14.11% since mid-December. Additionally, institutional investors have increased their stake in the company, reflecting a growing interest in its potential. However, the overall performance remains a point of concern as profits have decreased by 4.7% over the past year.
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