Jordan Telecommunications Ltd. (JTEL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jordan Telecommunications Ltd.

Why is Jordan Telecommunications Ltd. ?

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 2.63% and Operating profit at 17.01% 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 11.55% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at 13.35%
DEBT-EQUITY RATIO (HY) Highest at 77.26 %
NET SALES(Q) Lowest at JOD 87.08 MM

With ROE of 12.81%, it has a expensive valuation with a 2.05 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 6.55%, its profits have fallen by -25.1%
At the current price, the company has a high dividend yield of 7.1

Underperformed the market in the last 1 year

The stock has generated a return of 6.55% in the last 1 year, much lower than market (Jordan General Index) returns of 41.30%

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 Telecom - Services)

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

Is Jordan Telecommunications Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jordan Telecommunications Ltd.

6.19%

0.68

11.87%

Jordan General Index

41.13%

4.48

9.22%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.63%

EBIT Growth (5y)

17.01%

EBIT to Interest (avg)

4.04

Debt to EBITDA (avg)

0.86

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.72

Tax Ratio

29.41%

Dividend Payout Ratio

99.50%

Pledged Shares

Institutional Holding

ROCE (avg)

12.94%

ROE (avg)

11.55%

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

2.05

EV to EBIT

10.41

EV to EBITDA

4.64

EV to Capital Employed

1.69

EV to Sales

2.03

PEG Ratio

Dividend Yield

7.14%

ROCE (Latest)

16.20%

ROE (Latest)

12.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JOD 99.75 MM

RAW MATERIAL COST(Y)

Fallen by 1.14% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 19.04%

-7What is not working for the Company

ROCE(HY)

Lowest at 13.35%

DEBT-EQUITY RATIO (HY)

Highest at 77.26 %

NET SALES(Q)

Lowest at JOD 87.08 MM

OPERATING PROFIT(Q)

Lowest at JOD 37.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 43.6 %

EPS(Q)

Lowest at JOD 0.05

Here's what is working for Jordan Telecommunications Ltd.

Operating Cash Flow

Highest at JOD 99.75 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JOD MM)

Inventory Turnover Ratio

Highest at 19.04%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.14% (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 Jordan Telecommunications Ltd.

Net Sales

Lowest at JOD 87.08 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JOD MM)

Operating Profit

Lowest at JOD 37.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JOD MM)

Operating Profit Margin

Lowest at 43.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at JOD 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JOD)

Debt-Equity Ratio

Highest at 77.26 %

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