Emirates Reem Investments PJSC (ERC) 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

Dubai Refreshment Co Pjsc

Emirates Reem Investments PJSC

Why is Emirates Reem Investments PJSC ?

With a fall in Net Sales of -4.48%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 9 consecutive negative quarters
PRE-TAX PROFIT(Q) At AED 1.27 MM has Fallen at -73.67%
NET PROFIT(Q) At AED 1.17 MM has Fallen at -74.03%
OPERATING CASH FLOW(Y) Lowest at AED -93.55 MM

With ROE of 3.39%, it has a very expensive valuation with a 2.25 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 -14.70%, its profits have fallen by -35%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.70% returns in the last 1 year, the stock has also underperformed Abu Dhabi Securities Exchange in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Emirates Reem Investments PJSC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Emirates Reem Investments PJSC

-14.7%

-0.23

35.39%

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)

47.18%

EBIT Growth (5y)

24.62%

EBIT to Interest (avg)

-2.37

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

0.36

Tax Ratio

6.21%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.96%

ROE (avg)

1.90%

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

2.25

EV to EBIT

82.75

EV to EBITDA

41.96

EV to Capital Employed

3.23

EV to Sales

3.21

PEG Ratio

Dividend Yield

ROCE (Latest)

3.91%

ROE (Latest)

3.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

6What is working for the Company

NET SALES(HY)

At AED 106.82 MM has Grown at 53.24%

-26What is not working for the Company

PRE-TAX PROFIT(Q)

At AED 1.27 MM has Fallen at -73.67%

NET PROFIT(Q)

At AED 1.17 MM has Fallen at -74.03%

OPERATING CASH FLOW(Y)

Lowest at AED -93.55 MM

INTEREST(HY)

At AED 0.35 MM has Grown at 78.4%

OPERATING PROFIT(Q)

Lowest at AED 1.92 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.93 %

DEBT-EQUITY RATIO (HY)

Highest at -43.5 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.03 times

Here's what is working for Emirates Reem Investments PJSC

Net Sales

At AED 106.82 MM has Grown at 53.24%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (AED MM)

Here's what is not working for Emirates Reem Investments PJSC

Pre-Tax Profit

At AED 1.27 MM has Fallen at -73.67%

over average net sales of the previous four periods of AED 4.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (AED MM)

Net Profit

At AED 1.17 MM has Fallen at -74.03%

over average net sales of the previous four periods of AED 4.49 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (AED MM)

Operating Profit

Lowest at AED 1.92 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (AED MM)

Operating Profit Margin

Lowest at 3.93 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

At AED 0.35 MM has Grown at 78.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (AED MM)

Operating Cash Flow

Lowest at AED -93.55 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (AED MM)

Debt-Equity Ratio

Highest at -43.5 %

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

Debtors Turnover Ratio

Lowest at 2.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio