Sudatel Telecom Group Ltd. (SUDATEL) 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

Emirates Telecommunications Group Co. PJSC

Sudatel Telecom Group Ltd.

Why is Sudatel Telecom Group Ltd. ?

INTEREST COVERAGE RATIO(Q) Highest at 1,443.81
PRE-TAX PROFIT(Q) At AED 112.29 MM has Grown at 256.87%
NET PROFIT(Q) At AED 82.41 MM has Grown at 186.59%

With ROE of -10.81%, it has a risky valuation with a 0.84 Price to Book Value

Over the past year, while the stock has generated a return of 77.59%, its profits have fallen by -14%

Market Beating Performance

The stock has generated a return of 77.59% in the last 1 year, much higher than market (Abu Dhabi Securities Exchange) returns of 9.12%

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 Telecom - Services)

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

Is Sudatel Telecom Group Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sudatel Telecom Group Ltd.

-100.0%

1.95

40.95%

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)

11.00%

EBIT Growth (5y)

39.77%

EBIT to Interest (avg)

6.63

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

2.00

Sales to Capital Employed (avg)

0.80

Tax Ratio

20.61%

Dividend Payout Ratio

31.28%

Pledged Shares

Institutional Holding

ROCE (avg)

15.55%

ROE (avg)

9.15%

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

0.31

EV to EBIT

2.99

EV to EBITDA

2.24

EV to Capital Employed

0.49

EV to Sales

1.11

PEG Ratio

Dividend Yield

ROCE (Latest)

16.28%

ROE (Latest)

15.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at AED 525.03 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.67 times

INVENTORY TURNOVER RATIO(HY)

Highest at 8.35 times

NET SALES(Q)

Highest at AED 546.15 MM

-7What is not working for the Company

NET PROFIT(HY)

At AED 59.37 MM has Grown at -59.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,299.04

RAW MATERIAL COST(Y)

Grown by 42.78% (YoY

INTEREST(Q)

Highest at AED 17.83 MM

Here's what is working for Sudatel Telecom Group Ltd.

Operating Cash Flow

Highest at AED 525.03 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 (AED MM)

Debtors Turnover Ratio

Highest at 4.67 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 AED 546.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (AED MM)

Inventory Turnover Ratio

Highest at 8.35 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.67 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sudatel Telecom Group Ltd.

Net Profit

At AED 59.37 MM has Grown at -59.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (AED MM)

Interest Coverage Ratio

Lowest at 1,299.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at AED 17.83 MM

in the last five periods and Increased by 11.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (AED MM)

Raw Material Cost

Grown by 42.78% (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