Why is Dar Al Dawa Development & Investment Co. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 8.76%
- The company has been able to generate a Return on Capital Employed (avg) of 8.76% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 8.51% and Operating profit at 15.24% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 9.51% signifying low profitability per unit of shareholders funds
- OPERATING CASH FLOW(Y) Lowest at JOD -0.97 MM
- DEBT-EQUITY RATIO (HY) Highest at 67.8 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 1.97%
3
With ROE of 8.63%, it has a fair valuation with a 0.79 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -7.79%, its profits have risen by 33.6% ; the PEG ratio of the company is 0.3
4
Below par performance in long term as well as near term
- Along with generating -7.79% returns in the last 1 year, the stock has also underperformed Jordan General Index in the last 3 years, 1 year and 3 months
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 Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Dar Al Dawa Development & Investment Co. Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Dar Al Dawa Development & Investment Co. Ltd.
-6.32%
-0.75
19.41%
Jordan General Index
41.13%
4.48
9.22%
Quality key factors
Factor
Value
Sales Growth (5y)
8.51%
EBIT Growth (5y)
15.24%
EBIT to Interest (avg)
2.02
Debt to EBITDA (avg)
2.90
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.82
Tax Ratio
9.75%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.76%
ROE (avg)
9.51%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.79
EV to EBIT
7.93
EV to EBITDA
5.47
EV to Capital Employed
0.88
EV to Sales
0.92
PEG Ratio
0.27
Dividend Yield
NA
ROCE (Latest)
11.06%
ROE (Latest)
8.63%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
ROCE(HY)
Highest at 8.44%
RAW MATERIAL COST(Y)
Fallen by -6.82% (YoY
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JOD -0.97 MM
DEBT-EQUITY RATIO
(HY)
Highest at 67.8 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.97%
Here's what is working for Dar Al Dawa Development & Investment Co. Ltd.
Raw Material Cost
Fallen by -6.82% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Dar Al Dawa Development & Investment Co. Ltd.
Operating Cash Flow
Lowest at JOD -0.97 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JOD MM)
Debt-Equity Ratio
Highest at 67.8 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 1.97%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






