Ras Al Khaimah Ceramic Co. (RAKCEC) 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

Ras Al Khaimah Ceramic Co.

Why is Ras Al Khaimah Ceramic Co. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 5.11% and Operating profit at 5.43% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 11.41% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.11% and Operating profit at 5.43% over the last 5 years

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 1.49%
CASH AND EQV(HY) Lowest at AED 341.55 MM
DEBT-EQUITY RATIO (HY) Highest at 76.2 %

With ROE of 10.25%, it has a very attractive valuation with a 1.13 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.24%, its profits have fallen by -27.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ras Al Khaimah Ceramic Co. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Ras Al Khaimah Ceramic Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ras Al Khaimah Ceramic Co.

-100.0%

0.16

17.83%

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)

7.57%

EBIT Growth (5y)

18.63%

EBIT to Interest (avg)

3.02

Debt to EBITDA (avg)

2.83

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.87

Tax Ratio

17.64%

Dividend Payout Ratio

89.89%

Pledged Shares

Institutional Holding

ROCE (avg)

8.13%

ROE (avg)

11.79%

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

1.09

EV to EBIT

12.01

EV to EBITDA

7.45

EV to Capital Employed

1.06

EV to Sales

1.20

PEG Ratio

Dividend Yield

8.23%

ROCE (Latest)

8.79%

ROE (Latest)

10.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 521.86

RAW MATERIAL COST(Y)

Fallen by -2.58% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.43%

OPERATING PROFIT MARGIN(Q)

Highest at 16.96 %

PRE-TAX PROFIT(Q)

Highest at AED 89.03 MM

NET PROFIT(Q)

Highest at AED 67.49 MM

EPS(Q)

Highest at AED 0.07

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.49%

CASH AND EQV(HY)

Lowest at AED 341.55 MM

DEBT-EQUITY RATIO (HY)

Highest at 76.2 %

Here's what is working for Ras Al Khaimah Ceramic Co.

Interest Coverage Ratio

Highest at 521.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 16.96 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at AED 89.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (AED MM)

Net Profit

Highest at AED 67.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (AED MM)

EPS

Highest at AED 0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (AED)

Debtors Turnover Ratio

Highest at 3.43%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.58% (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 Ras Al Khaimah Ceramic Co.

Inventory Turnover Ratio

Lowest at 1.49% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at AED 341.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 76.2 %

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