Emirates Integrated Telecommunications Co. PSJC (DU) 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 Integrated Telecommunications Co. PSJC

Al Yah Satellite Communications Co. PJSC

Why is Emirates Integrated Telecommunications Co. PSJC ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.04

Low Debt Company with Strong Long Term Fundamental Strength

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at AED 5,300.42 MM
ROCE(HY) Highest at 29.01%
RAW MATERIAL COST(Y) Fallen by -2.82% (YoY)

With ROE of 28.63%, it has a very attractive valuation with a 4.49 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 27.22%, its profits have risen by 16.8% ; the PEG ratio of the company is 0.9

Consistent Returns over the last 3 years

Along with generating 27.22% returns in the last 1 year, the stock has outperformed Abu Dhabi Securities Exchange in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Emirates Integrated Telecommunications Co. PSJC should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Emirates Integrated Telecommunications Co. PSJC for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Emirates Integrated Telecommunications Co. PSJC

27.22%

3.54

20.71%

Abu Dhabi Securities Exchange

2.2%

0.18

12.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.49%

EBIT Growth (5y)

36.14%

EBIT to Interest (avg)

27.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.45

Tax Ratio

42.30%

Dividend Payout Ratio

99.86%

Pledged Shares

Institutional Holding

ROCE (avg)

30.37%

ROE (avg)

19.47%

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

4.49

EV to EBIT

8.53

EV to EBITDA

6.00

EV to Capital Employed

5.17

EV to Sales

2.76

PEG Ratio

0.93

Dividend Yield

5.77%

ROCE (Latest)

60.59%

ROE (Latest)

28.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at AED 5,300.42 MM

ROCE(HY)

Highest at 29.01%

RAW MATERIAL COST(Y)

Fallen by -2.82% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -3.06 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6.87 times

NET SALES(Q)

Highest at AED 4,283.28 MM

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 48.61 times

DIVIDEND PER SHARE(HY)

Lowest at AED 6.87

Here's what is working for Emirates Integrated Telecommunications Co. PSJC

Operating Cash Flow

Highest at AED 5,300.42 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)

Net Sales

Highest at AED 4,283.28 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (AED MM)

Debt-Equity Ratio

Lowest at -3.06 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6.87 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 -2.82% (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 Emirates Integrated Telecommunications Co. PSJC

Inventory Turnover Ratio

Lowest at 48.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at AED 6.87

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (AED)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)