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 13.82% over the last 5 years
3
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at AED 2,665.69 MM
- CASH AND EQV(HY) Highest at AED 10,046.6 MM
4
With ROE of 20.22%, it has a fair valuation with a 2.34 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 55.12%, its profits have risen by 8.2% ; the PEG ratio of the company is 1.4
5
Consistent Returns over the last 3 years
- Along with generating 55.12% 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
53.59%
4.40
23.11%
Abu Dhabi Securities Exchange
7.69%
0.97
8.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.82%
EBIT Growth (5y)
20.93%
EBIT to Interest (avg)
8.59
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
0.79
Tax Ratio
10.73%
Dividend Payout Ratio
79.52%
Pledged Shares
0
Institutional Holding
0.57%
ROCE (avg)
35.60%
ROE (avg)
15.55%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
2.34
EV to EBIT
11.28
EV to EBITDA
7.32
EV to Capital Employed
4.02
EV to Sales
1.91
PEG Ratio
1.41
Dividend Yield
6.76%
ROCE (Latest)
35.68%
ROE (Latest)
20.22%
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
Bullish
Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at AED 2,665.69 MM
CASH AND EQV(HY)
Highest at AED 10,046.6 MM
-3What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 86.35%
RAW MATERIAL COST(Y)
Grown by 16.97% (YoY
Here's what is working for Air Arabia PJSC
Operating Cash Flow
Highest at AED 2,665.69 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)
Cash and Eqv
Highest at AED 10,046.6 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Air Arabia PJSC
Inventory Turnover Ratio
Lowest at 86.35% 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
Raw Material Cost
Grown by 16.97% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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