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

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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

With ROE of 22.06%, it has a very expensive valuation with a 2.82 Price to Book Value

Over the past year, while the stock has generated a return of -51.00%, its profits have risen by 97.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.9

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -12.84% in the last 1 year, its fall in the stock was much higher with a return of -51.00%

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.

-52.09%

-1.75

32.96%

Saudi Arabia All Share TASI

-12.63%

-0.89

14.47%

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)

0.70

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

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 555.33 MM

NET PROFIT(HY)

At SAR 220.83 MM has Grown at 95.22%

ROCE(HY)

Highest at 22.83%

INVENTORY TURNOVER RATIO(HY)

Highest at 16.66%

RAW MATERIAL COST(Y)

Fallen by 0.58% (YoY

CASH AND EQV(HY)

Highest at SAR 314.07 MM

DEBT-EQUITY RATIO (HY)

Lowest at 132.36 %

NET SALES(Q)

Highest at SAR 791.13 MM

OPERATING PROFIT(Q)

Highest at SAR 172.35 MM

-1What is not working for the Company

NET PROFIT(Q)

Lowest at SAR 61.13 MM

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

Inventory Turnover Ratio

Highest at 16.66% 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

Operating Cash Flow

Highest at SAR 555.33 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Net Sales

Highest at SAR 791.13 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Profit

Highest at SAR 172.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Cash and Eqv

Highest at SAR 314.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 132.36 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.58% (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

Depreciation

Highest at SAR 61.01 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.

Net Profit

Lowest at SAR 61.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)