Union Properties Ltd. (UPP) 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

Deyaar Development PJSC

TECOM Group PJSC

Emaar Properties PJSC

Aldar Properties PJSC

Emaar Development PJSC

Al Ramz Corp. Investment & Development PJSC

Union Properties Ltd.

RAK Properties PJSC

Eshraq Investments PJSC

Aram Group Co.

Manazel PJSC

Why is Union Properties Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.50%

Poor long term growth as Net Sales has grown by an annual rate of 15.79%
The company has been able to generate a Return on Equity (avg) of 3.50% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate of 22.61%

Flat results in Jun 26

PRE-TAX PROFIT(Q) At AED 10.56 MM has Fallen at -91.51%
NET PROFIT(Q) At AED 6.58 MM has Fallen at -94.18%
OPERATING CASH FLOW(Y) Lowest at AED -60.87 MM

With ROE of 12.33%, it has a attractive valuation with a 0.80 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 -35.28%, its profits have risen by 364% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

Even though the market (Abu Dhabi Securities Exchange) generated negative returns of -1.29% in the last 1 year, its fall in the stock was much higher with a return of -35.28%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Union Properties Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Union Properties Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Union Properties Ltd.

-100.0%

1.76

30.10%

Abu Dhabi Securities Exchange

-1.29%

-0.10

12.44%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.79%

EBIT Growth (5y)

22.61%

EBIT to Interest (avg)

4.51

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

8.97%

Dividend Payout Ratio

27.83%

Pledged Shares

Institutional Holding

ROCE (avg)

7.85%

ROE (avg)

3.50%

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

0.80

EV to EBIT

-61.01

EV to EBITDA

-302.57

EV to Capital Employed

0.77

EV to Sales

2.83

PEG Ratio

0.02

Dividend Yield

4.37%

ROCE (Latest)

-1.27%

ROE (Latest)

12.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

14What is working for the Company

NET SALES(HY)

At AED 540.65 MM has Grown at 61.72%

NET PROFIT(HY)

At AED 18.37 MM has Grown at 105.68%

CASH AND EQV(HY)

Highest at AED 898.52 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.72 times

-12What is not working for the Company

PRE-TAX PROFIT(Q)

At AED 10.56 MM has Fallen at -91.51%

NET PROFIT(Q)

At AED 6.58 MM has Fallen at -94.18%

OPERATING CASH FLOW(Y)

Lowest at AED -60.87 MM

RAW MATERIAL COST(Y)

Grown by 26.49% (YoY

EPS(Q)

Lowest at AED 0

Here's what is working for Union Properties Ltd.

Net Sales

At AED 540.65 MM has Grown at 61.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (AED MM)

Cash and Eqv

Highest at AED 898.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 1.72 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 Union Properties Ltd.

Pre-Tax Profit

At AED 10.56 MM has Fallen at -91.51%

over average net sales of the previous four periods of AED 124.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (AED MM)

Net Profit

At AED 6.58 MM has Fallen at -94.18%

over average net sales of the previous four periods of AED 112.96 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (AED MM)

Operating Cash Flow

Lowest at AED -60.87 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (AED MM)

EPS

Lowest at AED 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (AED)

Raw Material Cost

Grown by 26.49% (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