Al Dawaa Medical Services Co. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Al Dawaa Medical Services Co.

Why is Al Dawaa Medical Services Co. ?

Poor Management Efficiency with a low ROCE of 22.63%

The company has been able to generate a Return on Capital Employed (avg) of 22.63% signifying low profitability per unit of total capital (equity and debt)

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 8.52% and Operating profit at 3.73% 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 26.12% signifying low profitability per unit of shareholders funds
OPERATING CASH FLOW(Y) Lowest at SAR 615.2 MM
ROCE(HY) Lowest at 25.49%
INTEREST COVERAGE RATIO(Q) Lowest at 386.97

Below par performance in long term as well as near term

Along with generating -32.26% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI 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 Retailing)

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

Is Al Dawaa Medical Services Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Al Dawaa Medical Services Co.

-32.26%

-1.44

28.31%

Saudi Arabia All Share TASI

-12.63%

-0.87

14.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.52%

EBIT Growth (5y)

3.73%

EBIT to Interest (avg)

3.90

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

2.71

Tax Ratio

5.83%

Dividend Payout Ratio

57.76%

Pledged Shares

Institutional Holding

ROCE (avg)

22.63%

ROE (avg)

26.12%

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

3.75

EV to EBIT

12.91

EV to EBITDA

7.21

EV to Capital Employed

2.82

EV to Sales

0.97

PEG Ratio

3.47

Dividend Yield

ROCE (Latest)

21.84%

ROE (Latest)

24.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 137.75 %

RAW MATERIAL COST(Y)

Fallen by -6.02% (YoY

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 615.2 MM

ROCE(HY)

Lowest at 25.49%

INTEREST COVERAGE RATIO(Q)

Lowest at 386.97

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

OPERATING PROFIT(Q)

Lowest at SAR 117.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.98 %

Here's what is working for Al Dawaa Medical Services Co.

Debt-Equity Ratio

Lowest at 137.75 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.02% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Al Dawaa Medical Services Co.

Operating Cash Flow

Lowest at SAR 615.2 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Interest Coverage Ratio

Lowest at 386.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at SAR 117.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 6.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio