Why is Emirates Driving Co. ?
1
High Management Efficiency with a high ROE of 23.85%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.64
3
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
4
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
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
7.69%
1.13
8.08%
Quality key factors
Factor
Value
Sales Growth (5y)
26.20%
EBIT Growth (5y)
19.43%
EBIT to Interest (avg)
55.64
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.59
Sales to Capital Employed (avg)
0.41
Tax Ratio
10.20%
Dividend Payout Ratio
66.07%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
59.18%
ROE (avg)
23.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
2.81
EV to EBIT
8.68
EV to EBITDA
7.52
EV to Capital Employed
6.21
EV to Sales
3.78
PEG Ratio
0.36
Dividend Yield
0.90%
ROCE (Latest)
71.59%
ROE (Latest)
26.21%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
15What is working for the Company
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
OPERATING PROFIT(Q)
Highest at AED 94.04 MM
PRE-TAX PROFIT(Q)
Highest at AED 97.9 MM
EPS(Q)
Highest at AED 0.08
-8What is not working for the Company
INTEREST(HY)
At AED 2.95 MM has Grown at 85.71%
RAW MATERIAL COST(Y)
Grown by 19.66% (YoY
Here's what is working for Emirates Driving Co.
Operating Cash Flow
Highest at AED 375.25 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)
Net Sales
Highest at AED 186.23 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (AED MM)
Operating Profit
Highest at AED 94.04 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (AED MM)
Pre-Tax Profit
Highest at AED 97.9 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (AED MM)
EPS
Highest at AED 0.08
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (AED)
Inventory Turnover Ratio
Highest at 61.9%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Emirates Driving Co.
Interest
At AED 2.95 MM has Grown at 85.71%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (AED MM)
Raw Material Cost
Grown by 19.66% (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






