Etihad Etisalat Co. (7020) 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

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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 6.94% and Operating profit at 32.77% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.96% signifying low profitability per unit of shareholders funds

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at SAR 4,778.43 MM
ROCE(HY) Lowest at 0%
INVENTORY TURNOVER RATIO(HY) Lowest at 0 times

With ROE of 17.50%, it has a very attractive valuation with a 2.60 Price to Book Value

Over the past year, while the stock has generated a return of 12.79%, its profits have risen by 32.5% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 3.8

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.

7.06%

1.34

27.12%

Saudi Arabia All Share TASI

-11.13%

-0.71

15.65%

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)

32.77%

EBIT to Interest (avg)

4.09

Debt to EBITDA (avg)

1.18

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1,964.81

Tax Ratio

2.24%

Dividend Payout Ratio

62.08%

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

2.60

EV to EBIT

14.47

EV to EBITDA

7.26

EV to Capital Employed

2.33

EV to Sales

2.89

PEG Ratio

0.46

Dividend Yield

3.81%

ROCE (Latest)

16.11%

ROE (Latest)

17.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

8What is working for the Company

NET SALES(Q)

Highest at SAR 5,186.67 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -73.91% (YoY

DIVIDEND PER SHARE(HY)

Highest at SAR 0

OPERATING PROFIT(Q)

Highest at SAR 2,873.64 MM

OPERATING PROFIT MARGIN(Q)

Highest at 55.4 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 4,778.43 MM

ROCE(HY)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

PRE-TAX PROFIT(Q)

Lowest at SAR 0 MM

EPS(Q)

Lowest at SAR 0

Here's what is working for Etihad Etisalat Co.

Net Sales

Highest at SAR 5,186.67 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (SAR MM)

Operating Profit

Highest at SAR 2,873.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 55.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at SAR 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SAR)

Raw Material Cost

Fallen by -73.91% (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 Etihad Etisalat Co.

Pre-Tax Profit

At SAR 0 MM has Fallen at -100%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Operating Cash Flow

Lowest at SAR 4,778.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Pre-Tax Profit

Lowest at SAR 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

EPS

Lowest at SAR 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio