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)

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 12.24% and Operating profit at 24.52% 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 9.64% signifying low profitability per unit of shareholders funds

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -11.13% in the last 1 year, its fall in the stock was much higher with a return of -58.96%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Middle East Healthcare Co.

-58.18%

-1.70

34.84%

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)

12.24%

EBIT Growth (5y)

24.52%

EBIT to Interest (avg)

2.16

Debt to EBITDA (avg)

5.81

Net Debt to Equity (avg)

1.14

Sales to Capital Employed (avg)

0.69

Tax Ratio

5.79%

Dividend Payout Ratio

16.32%

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

2.82

EV to EBIT

17.16

EV to EBITDA

11.17

EV to Capital Employed

1.80

EV to Sales

2.46

PEG Ratio

0.13

Dividend Yield

0.91%

ROCE (Latest)

10.47%

ROE (Latest)

22.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 507.91 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 18.25 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.57 times

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 8.13% (YoY

OPERATING PROFIT(Q)

Lowest at SAR 150.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.54 %

PRE-TAX PROFIT(Q)

Lowest at SAR 47.92 MM

NET PROFIT(Q)

Lowest at SAR 35.23 MM

EPS(Q)

Lowest at SAR 0.44

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

Operating Cash Flow

Highest at SAR 507.91 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Inventory Turnover Ratio

Highest at 18.25 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 1.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at SAR 62.81 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SAR MM)

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

Operating Profit

Lowest at SAR 150.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 19.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 47.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 35.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Raw Material Cost

Grown by 8.13% (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