Why is Dubai Electricity & Water Authority ?
1
Poor Management Efficiency with a low ROCE of 7.25%
- The company has been able to generate a Return on Capital Employed (avg) of 7.25% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 6.79% and Operating profit at 8.74% over the last 5 years
3
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at AED 19,528.1 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 13.55%
- RAW MATERIAL COST(Y) Fallen by -10.65% (YoY)
4
With ROE of 8.08%, it has a very attractive valuation with a 1.54 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 2.57%, its profits have fallen by -3.2%
How much should you hold?
- Overall Portfolio exposure to Dubai Electricity & Water Authority should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Dubai Electricity & Water Authority for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Dubai Electricity & Water Authority
5.68%
1.28
18.82%
Abu Dhabi Securities Exchange
7.69%
0.97
8.15%
Quality key factors
Factor
Value
Sales Growth (5y)
6.79%
EBIT Growth (5y)
8.74%
EBIT to Interest (avg)
5.57
Debt to EBITDA (avg)
1.86
Net Debt to Equity (avg)
0.28
Sales to Capital Employed (avg)
0.24
Tax Ratio
9.90%
Dividend Payout Ratio
88.38%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
7.25%
ROE (avg)
8.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.54
EV to EBIT
17.30
EV to EBITDA
10.19
EV to Capital Employed
1.42
EV to Sales
5.11
PEG Ratio
NA
Dividend Yield
2.26%
ROCE (Latest)
8.21%
ROE (Latest)
8.08%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Bullish
Bullish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at AED 19,528.1 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 13.55%
RAW MATERIAL COST(Y)
Fallen by -10.65% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 29.34 %
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Dubai Electricity & Water Authority
Operating Cash Flow
Highest at AED 19,528.1 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (AED MM)
Inventory Turnover Ratio
Highest at 13.55% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debt-Equity Ratio
Lowest at 29.34 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -10.65% (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






