ScoreWhy is Air Arabia PJSC ?
1
The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 38.78% over the last 5 years
3
Negative results in Mar 26
- INVENTORY TURNOVER RATIO(HY) Lowest at 73.44 times
- INTEREST COVERAGE RATIO(Q) Lowest at 1,603.72
- RAW MATERIAL COST(Y) Grown by 20.95% (YoY)
4
With ROE of 20.79%, it has a fair valuation with a 3.36 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 59.88%, its profits have risen by 2.6% ; the PEG ratio of the company is 6.2
5
Majority shareholders : FIIs
6
Consistent Returns over the last 3 years
- Along with generating 59.88% returns in the last 1 year, the stock has outperformed Abu Dhabi Securities Exchange in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Air Arabia PJSC should be less than 10%
- Overall Portfolio exposure to Airline should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Air Arabia PJSC for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Air Arabia PJSC
59.88%
4.10
33.18%
Abu Dhabi Securities Exchange
-1.41%
-0.12
12.55%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
38.78%
EBIT Growth (5y)
51.95%
EBIT to Interest (avg)
8.59
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
0.81
Tax Ratio
10.73%
Dividend Payout Ratio
85.96%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
35.60%
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 Trend1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 7.36 times
-15What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 73.44 times
INTEREST COVERAGE RATIO(Q)
Lowest at 1,603.72
RAW MATERIAL COST(Y)
Grown by 20.95% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -27.21 %
INTEREST(Q)
Highest at AED 21.74 MM
OPERATING PROFIT(Q)
Lowest at AED 348.7 MM
PRE-TAX PROFIT(Q)
Lowest at AED 264.49 MM
NET PROFIT(Q)
Lowest at AED 248.16 MM
EPS(Q)
Lowest at AED 0.05
Here's what is working for Air Arabia PJSC
Debtors Turnover Ratio
Highest at 7.36 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Air Arabia PJSC
Interest
At AED 21.74 MM has Grown at 28.07%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (AED MM)
Interest Coverage Ratio
Lowest at 1,603.72
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 73.44 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
Interest
Highest at AED 21.74 MM
in the last five periods and Increased by 28.07% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (AED MM)
Operating Profit
Lowest at AED 348.7 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (AED MM)
Pre-Tax Profit
Lowest at AED 264.49 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (AED MM)
Pre-Tax Profit
At AED 264.49 MM has Fallen at -35.52%
over average net sales of the previous four periods of AED 410.2 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (AED MM)
Net Profit
Lowest at AED 248.16 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (AED MM)
Net Profit
At AED 248.16 MM has Fallen at -39.05%
over average net sales of the previous four periods of AED 407.12 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (AED MM)
EPS
Lowest at AED 0.05
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (AED)
Debt-Equity Ratio
Highest at -27.21 %
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 20.95% (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 0.39 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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