Ataa Educational Co. (4292) 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

Ataa Educational Co.

Why is Ataa Educational Co. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 15.15% and Operating profit at 9.72% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1,501.10% signifying low profitability per unit of shareholders funds

Positive results in Apr 26

OPERATING CASH FLOW(Y) Highest at SAR 208 MM
ROCE(HY) Highest at 14.83%
CASH AND EQV(HY) Highest at SAR 126.07 MM

With ROE of 10.13%, it has a very attractive valuation with a 2.62 Price to Book Value

Over the past year, while the stock has generated a return of -15.58%, its profits have risen by 32.6% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 2.8

Below par performance in long term as well as near term

Along with generating -15.58% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ataa Educational Co. 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 Ataa Educational Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ataa Educational Co.

-15.58%

-0.38

32.75%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.15%

EBIT Growth (5y)

9.72%

EBIT to Interest (avg)

2.12

Debt to EBITDA (avg)

2.22

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.47

Tax Ratio

2.24%

Dividend Payout Ratio

76.24%

Pledged Shares

Institutional Holding

ROCE (avg)

2,245.05%

ROE (avg)

1,501.10%

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

2.62

EV to EBIT

22.65

EV to EBITDA

13.34

EV to Capital Employed

2.01

EV to Sales

4.28

PEG Ratio

0.79

Dividend Yield

2.84%

ROCE (Latest)

8.88%

ROE (Latest)

10.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 208 MM

ROCE(HY)

Highest at 14.83%

CASH AND EQV(HY)

Highest at SAR 126.07 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 82.24 times

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.5% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.02 times

Here's what is working for Ataa Educational Co.

Operating Cash Flow

Highest at SAR 208 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Cash and Eqv

Highest at SAR 126.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 82.24 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 Ataa Educational Co.

Debtors Turnover Ratio

Lowest at 5.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.5% (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