Palms Sports PJSC

Market Cap: Micro Cap
Industry: Media & Entertainment
ISIN: AEP000201019

AED

7.88

0.2 (2.6%)

Jul 02

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Easy Lease Motorcycle Rental PJSC

Palms Sports PJSC

Why is Palms Sports PJSC ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.13%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 44.33

With ROE of 22.00%, it has a very attractive valuation with a 1.72 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 -5.07%, its profits have risen by 5.3% ; the PEG ratio of the company is 1.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Palms Sports PJSC should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

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

Is Palms Sports PJSC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Palms Sports PJSC

-100.0%

-0.26

53.61%

Abu Dhabi Securities Exchange

-1.41%

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)

44.45%

EBIT Growth (5y)

13.50%

EBIT to Interest (avg)

44.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.38

Tax Ratio

10.77%

Dividend Payout Ratio

73.52%

Pledged Shares

Institutional Holding

ROCE (avg)

57.77%

ROE (avg)

22.69%

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

2.04

EV to EBIT

7.40

EV to EBITDA

6.49

EV to Capital Employed

2.27

EV to Sales

0.91

PEG Ratio

1.36

Dividend Yield

7.28%

ROCE (Latest)

30.66%

ROE (Latest)

22.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.89% (YoY

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 58.23 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.19 times

Here's what is working for Palms Sports PJSC

Raw Material Cost

Fallen by -7.89% (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

Here's what is not working for Palms Sports PJSC

Inventory Turnover Ratio

Lowest at 58.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at AED 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income