Middle East Healthcare Co. (4009) 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

Middle East Healthcare Co.

Why is Middle East Healthcare Co. ?

Poor Management Efficiency with a low ROCE of 6.40%

The company has been able to generate a Return on Capital Employed (avg) of 6.40% 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 11.85% and Operating profit at 25.10% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.64% signifying low profitability per unit of shareholders funds

Negative results in Mar 26

ROCE(HY) Lowest at 9.09%
OPERATING PROFIT MARGIN(Q) Lowest at 18.09 %
PRE-TAX PROFIT(Q) Lowest at SAR 36.97 MM

With ROE of 15.97%, it has a very attractive valuation with a 1.59 Price to Book Value

Over the past year, while the stock has generated a return of -43.17%, its profits have risen by 5.2% ; the PEG ratio of the company is 1.9
At the current price, the company has a high dividend yield of 1.5

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -0.13% in the last 1 year, its fall in the stock was much higher with a return of -43.17%

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 Pharmaceuticals & Biotechnology)

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

Is Middle East Healthcare Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Middle East Healthcare Co.

-43.17%

-1.70

34.99%

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)

11.85%

EBIT Growth (5y)

25.10%

EBIT to Interest (avg)

2.16

Debt to EBITDA (avg)

5.81

Net Debt to Equity (avg)

1.14

Sales to Capital Employed (avg)

0.71

Tax Ratio

5.79%

Dividend Payout Ratio

15.24%

Pledged Shares

Institutional Holding

ROCE (avg)

6.40%

ROE (avg)

9.64%

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

1.59

EV to EBIT

14.14

EV to EBITDA

8.65

EV to Capital Employed

1.25

EV to Sales

1.76

PEG Ratio

1.92

Dividend Yield

1.55%

ROCE (Latest)

8.85%

ROE (Latest)

15.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 18.74 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.68 times

-21What is not working for the Company

ROCE(HY)

Lowest at 9.09%

OPERATING PROFIT MARGIN(Q)

Lowest at 18.09 %

PRE-TAX PROFIT(Q)

Lowest at SAR 36.97 MM

NET PROFIT(Q)

Lowest at SAR 25.7 MM

RAW MATERIAL COST(Y)

Grown by 13.43% (YoY

OPERATING PROFIT(Q)

Lowest at SAR 138.46 MM

EPS(Q)

Lowest at SAR 0.28

Here's what is working for Middle East Healthcare Co.

Inventory Turnover Ratio

Highest at 18.74 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.68 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Middle East Healthcare Co.

Operating Profit Margin

Lowest at 18.09 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 36.97 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Pre-Tax Profit

At SAR 36.97 MM has Fallen at -78.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 25.7 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Net Profit

At SAR 25.7 MM has Fallen at -83.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Operating Profit

Lowest at SAR 138.46 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

EPS

Lowest at SAR 0.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Raw Material Cost

Grown by 13.43% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales