Abu Dhabi National Hotels (ADNH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Abu Dhabi National Hotels

Al Firdous Holdings PJSC

Why is Abu Dhabi National Hotels ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 15.52% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.63% signifying low profitability per unit of shareholders funds

With ROE of 13.28%, it has a very attractive valuation with a 0.65 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -25.92%, its profits have risen by 159.6% ; the PEG ratio of the company is 0

Below par performance in long term as well as near term

Along with generating -25.92% returns in the last 1 year, the stock has also underperformed Abu Dhabi Securities Exchange in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Abu Dhabi National Hotels for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Abu Dhabi National Hotels

-100.0%

-1.11

22.26%

Abu Dhabi Securities Exchange

-1.29%

1.13

8.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.67%

EBIT Growth (5y)

44.12%

EBIT to Interest (avg)

4.71

Debt to EBITDA (avg)

1.80

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.24

Tax Ratio

4.20%

Dividend Payout Ratio

34.84%

Pledged Shares

Institutional Holding

ROCE (avg)

3.90%

ROE (avg)

5.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.46

EV to EBIT

9.86

EV to EBITDA

6.15

EV to Capital Employed

0.50

EV to Sales

1.66

PEG Ratio

0.53

Dividend Yield

7.59%

ROCE (Latest)

5.08%

ROE (Latest)

5.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at AED 775.43 MM

-20What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 397.26

RAW MATERIAL COST(Y)

Grown by 76.01% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.85 times

NET SALES(Q)

Lowest at AED 683.01 MM

OPERATING PROFIT(Q)

Lowest at AED 92.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.48 %

PRE-TAX PROFIT(Q)

Lowest at AED -5.01 MM

NET PROFIT(Q)

Lowest at AED -9.24 MM

EPS(Q)

Lowest at AED -0

Here's what is working for Abu Dhabi National Hotels

Operating Cash Flow

Highest at AED 775.43 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (AED MM)

Here's what is not working for Abu Dhabi National Hotels

Pre-Tax Profit

At AED -5.01 MM has Fallen at -103.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (AED MM)

Net Profit

At AED -9.24 MM has Fallen at -107.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (AED MM)

Interest Coverage Ratio

Lowest at 397.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at AED 683.01 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (AED MM)

Operating Profit

Lowest at AED 92.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (AED MM)

Operating Profit Margin

Lowest at 13.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at AED -5.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (AED MM)

Net Profit

Lowest at AED -9.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (AED MM)

EPS

Lowest at AED -0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (AED)

Debtors Turnover Ratio

Lowest at 3.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 76.01% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales