The Arab Potash Co. (APOT) 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

The Arab Potash Co.

Arab Pesticides & Veterinary Drugs Manufacturing Co.

Why is The Arab Potash Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.60% and Operating profit at 9.69% over the last 5 years

INTEREST COVERAGE RATIO(Q) Highest at 7,081.71
RAW MATERIAL COST(Y) Fallen by 0.87% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 4.95%

With ROE of 10.97%, it has a fair valuation with a 1.66 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 25.27%, its profits have fallen by -9.4%
At the current price, the company has a high dividend yield of 3.4

Underperformed the market in the last 1 year

The stock has generated a return of 25.27% in the last 1 year, much lower than market (Jordan General Index) returns of 41.30%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Arab Potash Co. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is The Arab Potash Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Arab Potash Co.

27.74%

1.24

27.15%

Jordan General Index

41.13%

4.48

9.22%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.60%

EBIT Growth (5y)

9.69%

EBIT to Interest (avg)

61.14

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.43

Tax Ratio

30.96%

Dividend Payout Ratio

54.34%

Pledged Shares

Institutional Holding

ROCE (avg)

33.46%

ROE (avg)

20.52%

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

1.66

EV to EBIT

11.76

EV to EBITDA

8.63

EV to Capital Employed

1.86

EV to Sales

3.78

PEG Ratio

Dividend Yield

3.45%

ROCE (Latest)

15.84%

ROE (Latest)

10.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 7,081.71

RAW MATERIAL COST(Y)

Fallen by 0.87% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.95%

OPERATING PROFIT(Q)

Highest at JOD 84.41 MM

OPERATING PROFIT MARGIN(Q)

Highest at 49.64 %

PRE-TAX PROFIT(Q)

Highest at JOD 69.36 MM

NET PROFIT(Q)

Highest at JOD 60.02 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JOD 233.96 MM

ROCE(HY)

Lowest at 8.57%

EPS(Q)

Lowest at JOD 0.19

Here's what is working for The Arab Potash Co.

Interest Coverage Ratio

Highest at 7,081.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JOD 84.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JOD MM)

Operating Profit Margin

Highest at 49.64 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JOD 69.36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JOD MM)

Net Profit

Highest at JOD 60.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JOD MM)

Debtors Turnover Ratio

Highest at 4.95%

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 0.87% (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

Depreciation

Highest at JOD 19.88 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JOD MM)

Here's what is not working for The Arab Potash Co.

Operating Cash Flow

Lowest at JOD 233.96 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JOD MM)

EPS

Lowest at JOD 0.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JOD)

Non Operating Income

Highest at JOD 0.79 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income