Bank of Jordan (BOJX) 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

Safwa Islamic Bank

The Housing Bank for Trade & Finance

Jordan Commercial Bank

Capital Bank of Jordan

Invest Bank (Jordan)

Jordan Ahli Bank

Jordan Kuwait Bank

Cairo Amman Bank

Bank of Jordan

Why is Bank of Jordan ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 20.26% 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 0.95%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 20.26% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 1.19% signifying low profitability per unit of total assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 0.95%

Negative results in Mar 26

NII(Q) Lowest at JOD 30.2 MM
OPERATING PROFIT(Q) Lowest at JOD 10.14 MM
OPERATING PROFIT MARGIN(Q) Lowest at 22.4 %

Underperformed the market in the last 1 year

The stock has generated a return of 23.04% in the last 1 year, much lower than market (Jordan General Index) returns of 46.42%

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 Regional Banks)

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

Is Bank of Jordan for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bank of Jordan

-100.0%

1.59

15.24%

Jordan General Index

46.42%

4.49

10.35%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.03%

EBIT Growth (5y)

-1.81%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

81.82%

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

1.10

EV to EBIT

-11.42

EV to EBITDA

-8.49

EV to Capital Employed

0.90

EV to Sales

-2.30

PEG Ratio

2.88

Dividend Yield

0.67%

ROCE (Latest)

-7.89%

ROE (Latest)

7.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JOD 1,955.29 MM

-14What is not working for the Company

NII(Q)

Lowest at JOD 30.2 MM

OPERATING PROFIT(Q)

Lowest at JOD 10.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.4 %

PRE-TAX PROFIT(Q)

Lowest at JOD 10.44 MM

CREDIT DEPOSIT RATIO(HY)

Lowest at 78.74%

NET SALES(Q)

Lowest at JOD 45.28 MM

NET PROFIT(Q)

Lowest at JOD 7.17 MM

EPS(Q)

Lowest at JOD 0.04

Here's what is working for Bank of Jordan

Cash and Eqv

Highest at JOD 1,955.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JOD 3.33 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JOD MM)

Here's what is not working for Bank of Jordan

NII

Lowest at JOD 30.2 MM and Fallen

In each period in the last five periods

MOJO Watch

The bank's income from core business is falling

NII (JOD MM)

Operating Profit

Lowest at JOD 10.14 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (JOD MM)

Operating Profit Margin

Lowest at 22.4 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JOD 10.44 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JOD MM)

Net Sales

Lowest at JOD 45.28 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JOD MM)

Net Profit

Lowest at JOD 7.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JOD MM)

Net Profit

At JOD 7.17 MM has Fallen at -34.85%

over average net sales of the previous four periods of JOD 11 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JOD MM)

EPS

Lowest at JOD 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JOD)

Credit Deposit Ratio

Lowest at 78.74%

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 (%)