Palms Sports PJSC (PALMS) 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

Palms Sports PJSC

Easy Lease Motorcycle Rental 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

-1.29%

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)

37.89

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.38

Tax Ratio

11.04%

Dividend Payout Ratio

73.52%

Pledged Shares

Institutional Holding

ROCE (avg)

52.35%

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

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at AED 214.52 MM

RAW MATERIAL COST(Y)

Fallen by -8.64% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -27.62 %

-8What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 58.15 times

NET SALES(Q)

Lowest at AED 280.42 MM

OPERATING PROFIT(Q)

Lowest at AED 26.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.58 %

PRE-TAX PROFIT(Q)

Lowest at AED 22.75 MM

NET PROFIT(Q)

Lowest at AED 20.07 MM

Here's what is working for Palms Sports PJSC

Operating Cash Flow

Highest at AED 214.52 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (AED MM)

Debt-Equity Ratio

Lowest at -27.62 %

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 -8.64% (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

Net Sales

Lowest at AED 280.42 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (AED MM)

Operating Profit

Lowest at AED 26.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (AED MM)

Operating Profit Margin

Lowest at 9.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at AED 22.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (AED MM)

Net Profit

Lowest at AED 20.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (AED MM)

Inventory Turnover Ratio

Lowest at 58.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio