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

-1.41%

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)

55.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

0.45

Tax Ratio

10.20%

Dividend Payout Ratio

64.72%

Pledged Shares

Institutional Holding

ROCE (avg)

59.18%

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

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at AED 411.15 MM

ROCE(HY)

Highest at 28.74%

RAW MATERIAL COST(Y)

Fallen by -1.01% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 21.68 times

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,253.05

INTEREST(Q)

Highest at AED 4.07 MM

Here's what is working for Emirates Driving Co.

Operating Cash Flow

Highest at AED 411.15 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (AED MM)

Debtors Turnover Ratio

Highest at 21.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.01% (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

Depreciation

Highest at AED 12.65 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 2,253.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at AED 4.07 MM

in the last five periods and Increased by 16.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (AED MM)