Why is United Foods Co. PSC ?
1
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at AED 9.42 MM
- NET PROFIT(HY) At AED 12.34 MM has Grown at -44.63%
- RAW MATERIAL COST(Y) Grown by 22.37% (YoY)
2
With ROE of 6.40%, it has a very expensive valuation with a 1.59 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 16.67%, its profits have fallen by -45.4%
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is United Foods Co. PSC for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
United Foods Co. PSC
16.67%
0.55
51.52%
Abu Dhabi Securities Exchange
7.69%
0.97
8.15%
Quality key factors
Factor
Value
Sales Growth (5y)
9.30%
EBIT Growth (5y)
-7.37%
EBIT to Interest (avg)
19.28
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.28
Sales to Capital Employed (avg)
1.73
Tax Ratio
8.95%
Dividend Payout Ratio
98.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.25%
ROE (avg)
7.14%
Valuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.59
EV to EBIT
27.15
EV to EBITDA
14.96
EV to Capital Employed
1.74
EV to Sales
0.75
PEG Ratio
NA
Dividend Yield
5.81%
ROCE (Latest)
6.42%
ROE (Latest)
6.40%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
1What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 6.35%
-10What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at AED 9.42 MM
NET PROFIT(HY)
At AED 12.34 MM has Grown at -44.63%
RAW MATERIAL COST(Y)
Grown by 22.37% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -16.11 %
Here's what is working for United Foods Co. PSC
Inventory Turnover Ratio
Highest at 6.35%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at AED 3.52 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (AED MM)
Here's what is not working for United Foods Co. PSC
Operating Cash Flow
Lowest at AED 9.42 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (AED MM)
Net Profit
At AED 12.34 MM has Grown at -44.63%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (AED MM)
Debt-Equity Ratio
Highest at -16.11 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 22.37% (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






