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

Arab International Co. for Education & Investment Plc

Philadelphia International Educational Investment Co. Plc

Petra Education Co.

Al-Zarqa Educational & Investment

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 2.07% and Operating profit at 3.39% over the last 5 years

With ROE of 12.10%, it has a expensive valuation with a 1.58 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 29.46%, its profits have risen by 84.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 5.3

Underperformed the market in the last 1 year

The stock has generated a return of 29.46% in the last 1 year, much lower than market (Jordan General Index) returns of 41.27%

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 Tour, Travel Related Services)

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

Is Petra Education Co. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Petra Education Co.

29.46%

1.89

19.70%

Jordan General Index

38.95%

4.23

9.76%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.07%

EBIT Growth (5y)

3.39%

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)

0.52

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

1.58

EV to EBIT

9.57

EV to EBITDA

7.45

EV to Capital Employed

1.70

EV to Sales

2.56

PEG Ratio

0.15

Dividend Yield

5.33%

ROCE (Latest)

17.78%

ROE (Latest)

12.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JOD 11.37 MM

CASH AND EQV(HY)

Highest at JOD 27.65 MM

DEBT-EQUITY RATIO (HY)

Lowest at -27.88 %

DIVIDEND PER SHARE(HY)

Highest at JOD 5.96

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 15.69% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 79.78 times

Here's what is working for Petra Education Co.

Operating Cash Flow

Highest at JOD 11.37 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)

Cash and Eqv

Highest at JOD 27.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -27.88 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at JOD 5.96

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JOD)

Here's what is not working for Petra Education Co.

Inventory Turnover Ratio

Lowest at 79.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 15.69% (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