Al-Zarqa Educational & Investment (ZEIC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Arab International Co. for Education & Investment Plc

Philadelphia International Educational Investment Co. Plc

Petra Education Co.

Al-Zarqa Educational & Investment

Why is Al-Zarqa Educational & Investment ?

Poor Management Efficiency with a low ROCE of 5.06%

The company has been able to generate a Return on Capital Employed (avg) of 5.06% 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 18.18% and Operating profit at 47.28% 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 5.35% signifying low profitability per unit of shareholders funds
PRE-TAX PROFIT(Q) At JOD 0.95 MM has Fallen at -76.39%
NET PROFIT(Q) At JOD 0.57 MM has Fallen at -83.29%
RAW MATERIAL COST(Y) Grown by 35.96% (YoY)

With ROE of 22.74%, it has a attractive valuation with a 1.61 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.31%, its profits have risen by 713% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 2.9

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 Tour, Travel Related Services)

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

Is Al-Zarqa Educational & Investment for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Al-Zarqa Educational & Investment

7.31%

1.59

22.41%

Jordan General Index

41.27%

4.23

9.76%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.18%

EBIT Growth (5y)

47.28%

EBIT to Interest (avg)

2.26

Debt to EBITDA (avg)

1.93

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.72

Tax Ratio

21.67%

Dividend Payout Ratio

31.35%

Pledged Shares

Institutional Holding

ROCE (avg)

5.06%

ROE (avg)

5.35%

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

1.61

EV to EBIT

7.17

EV to EBITDA

4.38

EV to Capital Employed

1.43

EV to Sales

1.60

PEG Ratio

0.01

Dividend Yield

2.93%

ROCE (Latest)

20.02%

ROE (Latest)

22.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

CASH AND EQV(HY)

Highest at JOD 18.04 MM

DEBT-EQUITY RATIO (HY)

Lowest at 15.15 %

INVENTORY TURNOVER RATIO(HY)

Highest at 76.61 times

-12What is not working for the Company

PRE-TAX PROFIT(Q)

At JOD 0.95 MM has Fallen at -76.39%

NET PROFIT(Q)

At JOD 0.57 MM has Fallen at -83.29%

RAW MATERIAL COST(Y)

Grown by 35.96% (YoY

NET SALES(Q)

Fallen at -25.67%

Here's what is working for Al-Zarqa Educational & Investment

Cash and Eqv

Highest at JOD 18.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 15.15 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 76.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Al-Zarqa Educational & Investment

Pre-Tax Profit

At JOD 0.95 MM has Fallen at -76.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JOD MM)

Net Profit

At JOD 0.57 MM has Fallen at -83.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JOD MM)

Net Sales

Fallen at -25.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JOD MM)

Raw Material Cost

Grown by 35.96% (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