Arab Banking Corp. (ABCO) 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 Bank Plc

Jordan Islamic Bank

Jordan Commercial Bank

Jordan Ahli Bank

Invest Bank (Jordan)

Cairo Amman Bank

Jordan Kuwait Bank

Arab Banking Corp.

Bank Al-Etihad

Why is Arab Banking Corp. ?

Poor Management Efficiency with a low ROA of 0.37%

The bank has been able to generate a Return on Assets (avg) of 0.37% signifying low profitability per unit of total assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 17.80% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 19.14%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 17.80% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.37% signifying low profitability per unit of total assets

Underperformed the market in the last 1 year

The stock has generated a return of 17.65% in the last 1 year, much lower than market (Jordan General Index) returns of 52.62%

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 Major Banks)

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

Is Arab Banking Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arab Banking Corp.

-100.0%

0.71

29.70%

Jordan General Index

52.62%

5.46

9.64%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.30%

EBIT Growth (5y)

-5.97%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

0.53

EV to EBIT

37.21

EV to EBITDA

10.57

EV to Capital Employed

0.39

EV to Sales

0.52

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

1.06%

ROE (Latest)

1.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

5What is working for the Company

GROSS NPA (%)

NII(Q)

Highest at JOD 9.45 MM

CASH AND EQV(HY)

Highest at JOD 332.84 MM

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At JOD -1.17 MM has Fallen at -211.92%

NET PROFIT(Q)

At JOD -0.87 MM has Fallen at -232.56%

CREDIT DEPOSIT RATIO(HY)

Lowest at 96.64%

Here's what is working for Arab Banking Corp.

Non Performing Loans (%)

Lowest at 7.81%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at JOD 9.45 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JOD MM)

Cash and Eqv

Highest at JOD 332.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Arab Banking Corp.

Pre-Tax Profit

At JOD -1.17 MM has Fallen at -211.92%

over average net sales of the previous four periods of JOD 1.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JOD MM)

Net Profit

At JOD -0.87 MM has Fallen at -232.56%

over average net sales of the previous four periods of JOD 0.66 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JOD MM)

Credit Deposit Ratio

Lowest at 96.64%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)

Capital Adequacy Ratio

Lowest at 16.26%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)