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

Jordan Commercial Bank

The Housing Bank for Trade & Finance

Safwa Islamic Bank

Capital Bank of Jordan

Jordan Ahli Bank

Invest Bank (Jordan)

Jordan Kuwait Bank

Bank of Jordan

Cairo Amman Bank

Why is Bank of Jordan ?

Poor Management Efficiency with a low ROA of 1.19%

The bank has been able to generate a Return on Assets (avg) of 1.19% signifying low profitability per unit of total assets

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%

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at JOD 79.98 MM
NET PROFIT(HY) At JOD 16.35 MM has Grown at -38.07%
CREDIT DEPOSIT RATIO(HY) Lowest at 79.28%

With ROA of 1.04%, it has a fair valuation with a 1.10 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 17.11%, its profits have risen by 4.9% ; the PEG ratio of the company is 2.9

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

17.11%

1.55

15.64%

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)

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

-11.37

EV to EBITDA

-8.45

EV to Capital Employed

0.90

EV to Sales

-2.28

PEG Ratio

2.89

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

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JOD 2,089.44 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JOD 79.98 MM

NET PROFIT(HY)

At JOD 16.35 MM has Grown at -38.07%

CREDIT DEPOSIT RATIO(HY)

Lowest at 79.28%

Here's what is working for Bank of Jordan

Cash and Eqv

Highest at JOD 2,089.44 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 Bank of Jordan

Operating Cash Flow

Lowest at JOD 79.98 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)

Net Profit

At JOD 16.35 MM has Grown at -38.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JOD MM)

Credit Deposit Ratio

Lowest at 79.28%

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 (%)