Petra Education Co. (PEDC) 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

Philadelphia International Educational Investment Co. Plc

Al-Zarqa Educational & Investment

Petra Education Co.

Arab International Co. for Education & Investment Plc

Why is Petra Education Co. ?

Poor Management Efficiency with a low ROCE of 13.02%

The company has been able to generate a Return on Capital Employed (avg) of 13.02% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.50% and Operating profit at 5.37% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at JOD 10.61 MM
DEBTORS TURNOVER RATIO(HY) Highest at 5.84 times
RAW MATERIAL COST(Y) Fallen by -1.03% (YoY)

With ROE of 12.40%, it has a expensive valuation with a 1.75 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 18.53%, its profits have risen by 6.2% ; the PEG ratio of the company is 2.3
At the current price, the company has a high dividend yield of 6.1

Underperformed the market in the last 1 year

The stock has generated a return of 18.53% in the last 1 year, much lower than market (Jordan General Index) returns of 49.67%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Petra Education Co. 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 Petra Education Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Petra Education Co.

18.53%

1.07

25.37%

Jordan General Index

49.67%

4.83

10.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.50%

EBIT Growth (5y)

5.37%

EBIT to Interest (avg)

4.62

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.53

Tax Ratio

23.40%

Dividend Payout Ratio

86.09%

Pledged Shares

Institutional Holding

ROCE (avg)

13.02%

ROE (avg)

8.64%

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

1.75

EV to EBIT

10.07

EV to EBITDA

7.90

EV to Capital Employed

2.02

EV to Sales

2.57

PEG Ratio

2.27

Dividend Yield

6.10%

ROCE (Latest)

20.11%

ROE (Latest)

12.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JOD 10.61 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.84 times

RAW MATERIAL COST(Y)

Fallen by -1.03% (YoY

CASH AND EQV(HY)

Highest at JOD 26.7 MM

NET SALES(Q)

Highest at JOD 7.63 MM

NET PROFIT(Q)

Highest at JOD 2.1 MM

EPS(Q)

Highest at JOD 0.1

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 111.67 times

Here's what is working for Petra Education Co.

Operating Cash Flow

Highest at JOD 10.61 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JOD MM)

Debtors Turnover Ratio

Highest at 5.84 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at JOD 7.63 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JOD MM)

Net Profit

Highest at JOD 2.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JOD MM)

EPS

Highest at JOD 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JOD)

Cash and Eqv

Highest at JOD 26.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.03% (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 Petra Education Co.

Inventory Turnover Ratio

Lowest at 111.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio