ScoreWhy is Air Arabia PJSC ?
1
Poor long term growth as Net Sales has grown by an annual rate of 38.78% over the last 5 years
2
With a fall in Net Sales of -6.21%, the company declared Very Negative results in Jun 26
- The company has declared negative results for the last 2 consecutive quarters
- ROCE(HY) Lowest at 17.67%
- INVENTORY TURNOVER RATIO(HY) Lowest at 67.17 times
- INTEREST COVERAGE RATIO(Q) Lowest at 813.93
3
With ROE of 20.79%, it has a fair valuation with a 3.40 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 34.23%, its profits have risen by 2.6% ; the PEG ratio of the company is 6.2
Real-Time Research ReportHow 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 Airline)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Air Arabia PJSC for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Air Arabia PJSC
-100.0%
3.35
34.00%
Abu Dhabi Securities Exchange
-1.29%
-0.10
12.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
38.78%
EBIT Growth (5y)
51.95%
EBIT to Interest (avg)
12.18
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
0.81
Tax Ratio
11.67%
Dividend Payout Ratio
85.96%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
41.17%
ROE (avg)
15.55%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
3.40
EV to EBIT
18.88
EV to EBITDA
12.25
EV to Capital Employed
5.26
EV to Sales
2.85
PEG Ratio
6.22
Dividend Yield
5.45%
ROCE (Latest)
27.87%
ROE (Latest)
20.79%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
OPERATING CASH FLOW(Y)
Highest at AED 2,663.25 MM
-25What is not working for the Company
ROCE(HY)
Lowest at 17.67%
INVENTORY TURNOVER RATIO(HY)
Lowest at 67.17 times
INTEREST COVERAGE RATIO(Q)
Lowest at 813.93
RAW MATERIAL COST(Y)
Grown by 64.04% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -7.58 %
NET SALES(Q)
Lowest at AED 1,688.59 MM
INTEREST(Q)
Highest at AED 28.05 MM
OPERATING PROFIT(Q)
Lowest at AED 228.34 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 13.52 %
PRE-TAX PROFIT(Q)
Lowest at AED 101.88 MM
NET PROFIT(Q)
Lowest at AED 87.87 MM
EPS(Q)
Lowest at AED 0.02
Here's what is working for Air Arabia PJSC
Operating Cash Flow
Highest at AED 2,663.25 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (AED MM)
Depreciation
Highest at AED 185.12 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (AED MM)
Here's what is not working for Air Arabia PJSC
Pre-Tax Profit
At AED 101.88 MM has Fallen at -73.82%
over average net sales of the previous four periods of AED 389.2 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (AED MM)
Net Profit
At AED 87.87 MM has Fallen at -77.64%
over average net sales of the previous four periods of AED 392.88 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (AED MM)
Interest
At AED 28.05 MM has Grown at 29.03%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (AED MM)
Interest Coverage Ratio
Lowest at 813.93
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 67.17 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Sales
Lowest at AED 1,688.59 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (AED MM)
Interest
Highest at AED 28.05 MM
in the last five periods and Increased by 29.03% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (AED MM)
Operating Profit
Lowest at AED 228.34 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (AED MM)
Operating Profit Margin
Lowest at 13.52 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at AED 101.88 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (AED MM)
Net Profit
Lowest at AED 87.87 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (AED MM)
EPS
Lowest at AED 0.02
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (AED)
Debt-Equity Ratio
Highest at -7.58 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 64.04% (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
Non Operating Income
Highest at AED 0.85 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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