Etihad Etisalat Co. (7020) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Etihad Etisalat Co.

Why is Etihad Etisalat Co. ?

Poor Management Efficiency with a low ROCE of 10.61%

The company has been able to generate a Return on Capital Employed (avg) of 10.61% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.94% and Operating profit at 22.93% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.96% signifying low profitability per unit of shareholders funds

With a growth in Net Profit of 14.75%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 6 consecutive quarters
OPERATING CASH FLOW(Y) Highest at SAR 7,046.29 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,268.52
RAW MATERIAL COST(Y) Fallen by -7.34% (YoY)

With ROE of 17.05%, it has a very attractive valuation with a 2.48 Price to Book Value

Over the past year, while the stock has generated a return of 7.52%, its profits have risen by 11.6% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Etihad Etisalat Co. 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 Etihad Etisalat Co. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Etihad Etisalat Co.

-100.0%

1.13

24.02%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.94%

EBIT Growth (5y)

22.93%

EBIT to Interest (avg)

4.09

Debt to EBITDA (avg)

1.18

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.70

Tax Ratio

2.24%

Dividend Payout Ratio

62.12%

Pledged Shares

Institutional Holding

ROCE (avg)

10.61%

ROE (avg)

10.96%

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

2.48

EV to EBIT

13.86

EV to EBITDA

6.99

EV to Capital Employed

2.30

EV to Sales

2.72

PEG Ratio

1.26

Dividend Yield

3.97%

ROCE (Latest)

16.56%

ROE (Latest)

17.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at SAR 7,046.29 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,268.52

RAW MATERIAL COST(Y)

Fallen by -7.34% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.62 times

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Etihad Etisalat Co.

Interest Coverage Ratio

Highest at 1,268.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at SAR 7,046.29 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Debtors Turnover Ratio

Highest at 3.62 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 -7.34% (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