The manufacturer of hard landscaping products, Marshalls plc has been in a downtrend for 2 years. The MSLH stock has given a negative 71% return to its investors during this period. However, looking at the financial performance of the company, this negative growth is contradictory.
The company has made industry-close revenue growth over the last 5 years. Despite suffering from the COVID pandemic the Compound growth rate is 10.8% CAGR. Along with the revenue the company is net profit positive with a margin of 3.7% which is again acceptable for this capital-intensive industry.
Moreover, the management is also distributing regular dividends to its shareholders. In 2022, the company paid a dividend payout of 137%. It means that the firm used its internal reserves for dividends. This accounted for a dividend per share of £0.6 and a dividend yield of 5.7%.
It is likely that the market is not considering the fundamentals in the first place. However, the management has done everything they can. They have reported good growth and paid surged dividends to attract shareholders.
Technical Analysis and Prediction of MSLH Share Price
At the press time., The MSLH share price is trading at the level of £205. The bears have taken control since claiming the resistance level of £205. This downtrend has also broken past the support of £216. However, it might be just a deviation, which means that the bulls can reclaim this support level again.
The bearish crossover between the 50-day exponential moving average (EMA) and the 150-day EMA occurred over a year ago. At the press time, the 50-day EMA is at £245 while the 150-day EMA is at £272. Additionally, the Relative Strength Index (RSI) is at an oversold level of 29. As a result of the MSLH share price breaking the support level, the RSI has reached rock bottom.
The prediction for MSLH share price will be bullish if the bulls can reclaim the support level of £216. If they don’t, the price will move towards its 2nd resistance level of £175. Moreover, the current trend is downward, as we can see in the image above. To reverse this trend, the bulls will have to make a higher low above the trendline.
Conclusion
The MSLH share price has been in a downtrend for 2 years. However, the company is giving an excellent performance on the fundamental grounds. The current share price is in the demand zone and it can be a deviation.
Technical Levels
Support: £209 and £175
Resistance: £300, and £353
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/19/mslh-share-price-a-hidden-gem-stock-which-investors-need-to-see/