ScoreWhy is Arab Jordan Investment Bank ?
1
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 15.56% 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 7.20%
- Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 15.56% signifying inadequate buffers against its risk based assets
- The bank has been able to generate a Return on Assets (avg) of 0.73% signifying low profitability per unit of total assets
2
Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 7.20%
3
Flat results in Mar 26
- GROSS NPA (%)(Q) Highest at 2.2%
- OPERATING CASH FLOW(Y) Lowest at JOD 18.95 MM
- NET SALES(Q) Lowest at JOD 32.25 MM
4
With ROA of 0.65%, it has a fair valuation with a 1.09 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 32.03%, its profits have risen by 1.7% ; the PEG ratio of the company is 9.2
- At the current price, the company has a high dividend yield of 7.1
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Arab Jordan Investment Bank should be less than 10%
- Overall Portfolio exposure to Major Banks should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Major Banks)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arab Jordan Investment Bank for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arab Jordan Investment Bank
32.03%
1.10
30.89%
Jordan General Index
46.42%
4.49
10.35%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.17%
EBIT Growth (5y)
8.13%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
111.21%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.09
EV to EBIT
6.92
EV to EBITDA
5.05
EV to Capital Employed
1.19
EV to Sales
0.96
PEG Ratio
9.23
Dividend Yield
7.10%
ROCE (Latest)
17.22%
ROE (Latest)
7.03%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
CASH AND EQV(HY)
Highest at JOD 1,054.85 MM
OPERATING PROFIT MARGIN(Q)
Highest at 20 %
NET PROFIT(Q)
Highest at JOD 4.67 MM
EPS(Q)
Highest at JOD 0.03
-10What is not working for the Company
GROSS NPA (%)
(Q
OPERATING CASH FLOW(Y)
Lowest at JOD 18.95 MM
NET SALES(Q)
Lowest at JOD 32.25 MM
NII(Q)
Lowest at JOD 13.57 MM
CREDIT DEPOSIT RATIO(HY)
Lowest at 65.03%
Here's what is working for Arab Jordan Investment Bank
Operating Profit Margin
Highest at 20 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at JOD 4.67 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JOD MM)
EPS
Highest at JOD 0.03
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JOD)
Cash and Eqv
Highest at JOD 1,054.85 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Arab Jordan Investment Bank
Non Performing Loans (%)
Highest at 2.2% and Grown
In each half year in the last four Semi-Annual periodsMOJO Watch
Proportion of stressed loans given by the bank are increasing
Non Performing Loans (%)
Net Sales
Lowest at JOD 32.25 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term sales trend is very negative
Net Sales (JOD MM)
NII
Lowest at JOD 13.57 MM
in the last five periodsMOJO Watch
The bank's income from core business is falling
NII (JOD MM)
Operating Cash Flow
Lowest at JOD 18.95 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JOD MM)
Credit Deposit Ratio
Lowest at 65.03%
in the last four Semi-Annual periodsMOJO Watch
Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets
Credit Deposit Ratio (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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