National Co. for Learning & Education (4291) 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

National Co. for Learning & Education

Why is National Co. for Learning & Education ?

With a growth in Net Profit of NAN%, the company declared Very Positive results in Jan 26

OPERATING CASH FLOW(Y) Highest at SAR 239.14 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,460.4
RAW MATERIAL COST(Y) Fallen by -4.88% (YoY)

With ROE of 17.63%, it has a very expensive valuation with a 5.29 Price to Book Value

Over the past year, while the stock has generated a return of -24.66%, its profits have fallen by -6.8%
At the current price, the company has a high dividend yield of 0.1

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 -24.66%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to National Co. for Learning & Education should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is National Co. for Learning & Education for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

National Co. for Learning & Education

-24.66%

-0.62

34.30%

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)

26.55%

EBIT Growth (5y)

27.91%

EBIT to Interest (avg)

13.16

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.69

Tax Ratio

Dividend Payout Ratio

66.89%

Pledged Shares

Institutional Holding

ROCE (avg)

4,049.84%

ROE (avg)

3,585.87%

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

5.29

EV to EBIT

27.79

EV to EBITDA

21.54

EV to Capital Employed

5.28

EV to Sales

6.98

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

19.01%

ROE (Latest)

17.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly 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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 239.14 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,460.4

RAW MATERIAL COST(Y)

Fallen by -4.88% (YoY

NET SALES(Q)

Highest at SAR 212.23 MM

OPERATING PROFIT(Q)

Highest at SAR 88.09 MM

OPERATING PROFIT MARGIN(Q)

Highest at 41.51 %

PRE-TAX PROFIT(Q)

Highest at SAR 66.92 MM

NET PROFIT(Q)

Highest at SAR 65.09 MM

EPS(Q)

Highest at SAR 1.51

-3What is not working for the Company

INTEREST(9M)

At SAR 18.52 MM has Grown at 83.54%

DEBT-EQUITY RATIO (HY)

Highest at 50.94 %

Here's what is working for National Co. for Learning & Education

Interest Coverage Ratio

Highest at 1,460.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at SAR 239.14 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 212.23 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Profit

Highest at SAR 88.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 41.51 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SAR 66.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Net Profit

Highest at SAR 65.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 1.51

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Raw Material Cost

Fallen by -4.88% (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 18.63 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 National Co. for Learning & Education

Interest

At SAR 18.52 MM has Grown at 83.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Debt-Equity Ratio

Highest at 50.94 %

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