Dallah Healthcare Co. (4004) 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

Dallah Healthcare Co.

Why is Dallah Healthcare Co. ?

Poor Management Efficiency with a low ROCE of 8.34%

The company has been able to generate a Return on Capital Employed (avg) of 8.34% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 25.27% and Operating profit at 35.02% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 11.48% signifying low profitability per unit of shareholders funds

Negative results in Mar 26

INTEREST(HY) At SAR 100.5 MM has Grown at 97.99%
OPERATING CASH FLOW(Y) Lowest at SAR 200.01 MM
ROCE(HY) Lowest at 11.45%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.12% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in each of the last 3 annual periods

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 Hospital)

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

Is Dallah Healthcare Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dallah Healthcare Co.

-13.12%

-1.13

32.68%

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)

25.27%

EBIT Growth (5y)

35.02%

EBIT to Interest (avg)

5.79

Debt to EBITDA (avg)

3.71

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.55

Tax Ratio

3.87%

Dividend Payout Ratio

37.60%

Pledged Shares

Institutional Holding

ROCE (avg)

8.34%

ROE (avg)

11.48%

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

2.89

EV to EBIT

27.66

EV to EBITDA

19.70

EV to Capital Employed

2.00

EV to Sales

3.78

PEG Ratio

3.05

Dividend Yield

1.33%

ROCE (Latest)

7.24%

ROE (Latest)

13.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 59.79%

-17What is not working for the Company

INTEREST(HY)

At SAR 100.5 MM has Grown at 97.99%

OPERATING CASH FLOW(Y)

Lowest at SAR 200.01 MM

ROCE(HY)

Lowest at 11.45%

DEBT-EQUITY RATIO (HY)

Highest at 93.42 %

OPERATING PROFIT MARGIN(Q)

Lowest at 17.02 %

RAW MATERIAL COST(Y)

Grown by 8.25% (YoY

PRE-TAX PROFIT(Q)

Lowest at SAR 77.09 MM

NET PROFIT(Q)

Lowest at SAR 84.52 MM

EPS(Q)

Lowest at SAR 0.84

Here's what is working for Dallah Healthcare Co.

Dividend Payout Ratio

Highest at 59.79%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at SAR 62.77 MM

in the last five periods

MOJO Watch

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

Depreciation (SAR MM)

Here's what is not working for Dallah Healthcare Co.

Interest

At SAR 100.5 MM has Grown at 97.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Operating Profit Margin

Lowest at 17.02 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 93.42 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Cash Flow

Lowest at SAR 200.01 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Pre-Tax Profit

Lowest at SAR 77.09 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 84.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Raw Material Cost

Grown by 8.25% (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