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

Philadelphia International Educational Investment Co. Plc

Petra Education Co.

Al-Zarqa Educational & Investment

Arab International Co. for Education & Investment Plc

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 19.42% and Operating profit at 51.80% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.35% signifying low profitability per unit of shareholders funds
DEBT-EQUITY RATIO (HY) Lowest at 8.34 %
RAW MATERIAL COST(Y) Fallen by -11.3% (YoY)
CASH AND EQV(HY) Highest at JOD 20.41 MM

With ROE of 15.63%, it has a expensive valuation with a 1.34 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 7.62%, its profits have risen by 10.7% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Al-Zarqa Educational & Investment should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Al-Zarqa Educational & Investment for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Al-Zarqa Educational & Investment

7.62%

1.57

23.20%

Jordan General Index

46.42%

4.78

10.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.42%

EBIT Growth (5y)

51.80%

EBIT to Interest (avg)

2.26

Debt to EBITDA (avg)

1.93

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.75

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

1.34

EV to EBIT

7.12

EV to EBITDA

4.17

EV to Capital Employed

1.32

EV to Sales

1.32

PEG Ratio

0.81

Dividend Yield

3.02%

ROCE (Latest)

18.50%

ROE (Latest)

15.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

10What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 8.34 %

RAW MATERIAL COST(Y)

Fallen by -11.3% (YoY

CASH AND EQV(HY)

Highest at JOD 20.41 MM

NET SALES(Q)

Highest at JOD 14.47 MM

OPERATING PROFIT(Q)

Highest at JOD 7.05 MM

OPERATING PROFIT MARGIN(Q)

Highest at 48.72 %

PRE-TAX PROFIT(Q)

Highest at JOD 5.8 MM

NET PROFIT(Q)

Highest at JOD 4.54 MM

EPS(Q)

Highest at JOD 0.26

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Debt-Equity Ratio

Lowest at 8.34 % 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

Net Sales

Highest at JOD 14.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JOD MM)

Operating Profit

Highest at JOD 7.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JOD MM)

Operating Profit Margin

Highest at 48.72 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JOD 5.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JOD MM)

Net Profit

Highest at JOD 4.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JOD MM)

EPS

Highest at JOD 0.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JOD)

Cash and Eqv

Highest at JOD 20.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.3% (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