Emirates Driving Co. (DRIVE) 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

Emirates Driving Co.

Taaleem Holdings PJSC

Why is Emirates Driving Co. ?

High Management Efficiency with a high ROE of 23.85%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.64

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at AED 375.25 MM
INVENTORY TURNOVER RATIO(HY) Highest at 61.9%
NET SALES(Q) Highest at AED 186.23 MM

With ROE of 25.69%, it has a fair valuation with a 2.57 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 15.11%, its profits have risen by 15.3% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Emirates Driving Co. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Emirates Driving Co. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Emirates Driving Co.

-100.0%

0.65

22.59%

Abu Dhabi Securities Exchange

-1.29%

1.13

8.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.52%

EBIT Growth (5y)

23.31%

EBIT to Interest (avg)

53.54

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

0.45

Tax Ratio

14.48%

Dividend Payout Ratio

64.72%

Pledged Shares

Institutional Holding

ROCE (avg)

67.59%

ROE (avg)

23.85%

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

3.42

EV to EBIT

10.50

EV to EBITDA

9.18

EV to Capital Employed

7.88

EV to Sales

4.34

PEG Ratio

0.49

Dividend Yield

0.85%

ROCE (Latest)

75.02%

ROE (Latest)

28.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

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 AED 1,786.63 MM

-17What is not working for the Company

INTEREST(HY)

At AED 8.11 MM has Grown at 174.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,924.73

RAW MATERIAL COST(Y)

Grown by 6.58% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -40.29 %

NET SALES(Q)

Lowest at AED 171.65 MM

OPERATING PROFIT(Q)

Lowest at AED 77.82 MM

PRE-TAX PROFIT(Q)

Lowest at AED 73.97 MM

NET PROFIT(Q)

Lowest at AED 63.38 MM

EPS(Q)

Lowest at AED 0.06

Here's what is working for Emirates Driving Co.

Cash and Eqv

Highest at AED 1,786.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at AED 13.07 MM

in the last five periods

MOJO Watch

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

Depreciation (AED MM)

Here's what is not working for Emirates Driving Co.

Interest Coverage Ratio

Lowest at 1,924.73 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At AED 8.11 MM has Grown at 174.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (AED MM)

Net Sales

Lowest at AED 171.65 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (AED MM)

Operating Profit

Lowest at AED 77.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (AED MM)

Pre-Tax Profit

Lowest at AED 73.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (AED MM)

Pre-Tax Profit

At AED 73.97 MM has Fallen at -27.84%

over average net sales of the previous four periods of AED 102.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (AED MM)

Net Profit

Lowest at AED 63.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (AED MM)

EPS

Lowest at AED 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (AED)

Debt-Equity Ratio

Highest at -40.29 %

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

Raw Material Cost

Grown by 6.58% (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