Arab Aluminium Industry Co. Ltd. (AALU) 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

National Aluminium Industrial Co.

Arab Aluminium Industry Co. Ltd.

Why is Arab Aluminium Industry Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 3.31%

The company has been able to generate a Return on Capital Employed (avg) of 3.31% 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 -5.15% and Operating profit at -164.31% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -5.15% and Operating profit at -164.31% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -21.88%, its profits have fallen by -27%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.88% returns in the last 1 year, the stock has also underperformed Jordan General Index in each of the last 3 annual periods

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 Non - Ferrous Metals)

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

Is Arab Aluminium Industry Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arab Aluminium Industry Co. Ltd.

-21.88%

-1.49

33.37%

Jordan General Index

37.55%

3.71

10.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.15%

EBIT Growth (5y)

-164.31%

EBIT to Interest (avg)

0.10

Debt to EBITDA (avg)

0.18

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.83

Tax Ratio

18.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.56%

ROE (avg)

2.94%

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

EV to EBIT

0.42

EV to EBITDA

-0.42

EV to Capital Employed

-0.04

EV to Sales

-0.05

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-3.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -308.29% (YoY

OPERATING PROFIT(Q)

Highest at JOD 0.25 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.93 %

PRE-TAX PROFIT(Q)

Highest at JOD 0.16 MM

NET PROFIT(Q)

Highest at JOD 0.13 MM

EPS(Q)

Highest at JOD 0.02

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JOD -0.41 MM

NET PROFIT(9M)

At JOD -0.15 MM has Grown at -48.61%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.54 times

DEBT-EQUITY RATIO (HY)

Highest at -0.2 %

Here's what is working for Arab Aluminium Industry Co. Ltd.

Pre-Tax Profit

At JOD 0.16 MM has Grown at 259.11%

over average net sales of the previous four periods of JOD -0.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JOD MM)

Net Profit

At JOD 0.13 MM has Grown at 234.15%

over average net sales of the previous four periods of JOD -0.1 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JOD MM)

Operating Profit

Highest at JOD 0.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JOD MM)

Operating Profit Margin

Highest at 11.93 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JOD 0.16 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 0.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JOD MM)

EPS

Highest at JOD 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JOD)

Raw Material Cost

Fallen by -308.29% (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 Arab Aluminium Industry Co. Ltd.

Operating Cash Flow

Lowest at JOD -0.41 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 (JOD MM)

Inventory Turnover Ratio

Lowest at 1.54 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio

Highest at -0.2 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio