ScoreWhy is Air Arabia PJSC ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Poor long term growth as Net Sales has grown by an annual rate of 33.29% over the last 5 years
3
Flat results in Dec 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 80.91 times
- RAW MATERIAL COST(Y) Grown by 13.62% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at -28.75 %
4
With ROE of 19.37%, it has a very attractive valuation with a 2.45 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 28.25%, its profits have risen by 11% ; the PEG ratio of the company is 1.2
5
Consistent Returns over the last 3 years
- Along with generating 28.25% 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Air Arabia PJSC
28.25%
2.74
26.75%
Abu Dhabi Securities Exchange
2.2%
0.18
12.34%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
33.29%
EBIT Growth (5y)
55.36%
EBIT to Interest (avg)
8.59
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
0.80
Tax Ratio
10.73%
Dividend Payout Ratio
85.96%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
35.60%
ROE (avg)
15.55%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
2.45
EV to EBIT
13.55
EV to EBITDA
9.10
EV to Capital Employed
3.45
EV to Sales
2.21
PEG Ratio
1.15
Dividend Yield
5.66%
ROCE (Latest)
25.45%
ROE (Latest)
19.37%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at AED 3,142.85 MM
DIVIDEND PER SHARE(HY)
Highest at AED 21.01
CASH AND EQV(HY)
Highest at AED 10,272.99 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 21.01 times
NET SALES(Q)
Highest at AED 2,295.63 MM
-6What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 80.91 times
RAW MATERIAL COST(Y)
Grown by 13.62% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -28.75 %
OPERATING PROFIT MARGIN(Q)
Lowest at 18.99 %
Here's what is working for Air Arabia PJSC
Operating Cash Flow
Highest at AED 3,142.85 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (AED MM)
Dividend per share
Highest at AED 21.01 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (AED)
Net Sales
Highest at AED 2,295.63 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (AED MM)
Cash and Eqv
Highest at AED 10,272.99 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 21.01 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
Inventory Turnover Ratio
Lowest at 80.91 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
Operating Profit Margin
Lowest at 18.99 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at -28.75 %
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 13.62% (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 0.3 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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