National Corp. for Tourism & Hotels (NCTH) 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

National Corp. for Tourism & Hotels

Abu Dhabi National Hotels

Why is National Corp. for Tourism & Hotels ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.02

With a growth in Net Sales of 67.51%, the company declared Very Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at AED 240.48 MM
NET PROFIT(HY) Higher at AED 316.42 MM
ROCE(HY) Highest at 10.18%

With ROE of 3.25%, it has a fair valuation with a 0.89 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -28.79%, its profits have risen by 11.2% ; the PEG ratio of the company is 2.4

Below par performance in long term as well as near term

Along with generating -28.79% returns in the last 1 year, the stock has also underperformed Abu Dhabi Securities Exchange in the last 3 years, 1 year and 3 months

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 Leisure Services)

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

Is National Corp. for Tourism & Hotels for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

National Corp. for Tourism & Hotels

-100.0%

-0.83

24.34%

Abu Dhabi Securities Exchange

7.69%

1.13

8.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.99%

EBIT Growth (5y)

21.31%

EBIT to Interest (avg)

7.42

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.25

Tax Ratio

6.04%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.51%

ROE (avg)

4.73%

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

0.37

EV to EBIT

8.54

EV to EBITDA

5.88

EV to Capital Employed

0.38

EV to Sales

1.30

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

4.40%

ROE (Latest)

7.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Bearish

OBV

No Trend

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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at AED 240.48 MM

NET PROFIT(HY)

Higher at AED 316.42 MM

ROCE(HY)

Highest at 10.18%

INVENTORY TURNOVER RATIO(HY)

Highest at 30.19%

NET SALES(Q)

At AED 497.01 MM has Grown at 67.51%

CASH AND EQV(HY)

Highest at AED 1,578.29 MM

-11What is not working for the Company

INTEREST(HY)

At AED 14.74 MM has Grown at 127.84%

RAW MATERIAL COST(Y)

Grown by 25.01% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 2.43 %

NET PROFIT(Q)

At AED 55.12 MM has Fallen at -35.22%

Here's what is working for National Corp. for Tourism & Hotels

Net Sales

At AED 497.01 MM has Grown at 67.51%

over average net sales of the previous four periods of AED 296.7 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (AED MM)

Inventory Turnover Ratio

Highest at 30.19% 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 AED 240.48 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (AED MM)

Cash and Eqv

Highest at AED 1,578.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at AED 40.54 MM

in the last five periods

MOJO Watch

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

Depreciation (AED MM)

Here's what is not working for National Corp. for Tourism & Hotels

Interest

At AED 14.74 MM has Grown at 127.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (AED MM)

Net Profit

At AED 55.12 MM has Fallen at -35.22%

over average net sales of the previous four periods of AED 85.09 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (AED MM)

Debt-Equity Ratio

Highest at 2.43 %

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

Raw Material Cost

Grown by 25.01% (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