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Group X
ID Name
g00062047 Khawla Almaazmi
g00032008 Shamma Alqassim
g00071328 Amel Ibrahim
B00047097 Fayez Barakji
Content 2
1 Global Economy
• Global economic growth to
edge up to 3.1% in 2018
3 UAE Economy
• Expo 2020
• VAT
• 4.5% growth in developing
economies in 2018 • Diversification Strategy (80%
in 2021).
2
Regional Economy • Growth in logistics, retail,
tourism, construction and
• The impact of the oil real estate.
production cuts by OPEC
• FDI yearly growth of 8.2%:
• Higher oil prices will boost
economic growth. - real estate, trade and
car repairs, finance and
insurance and
manufacturing.
Sector analysis 4
• Strategic vision:
• Reduce dependency on oil-related sectors.
• Diversify economic development.
• Rapid infrastructure and construction development.
• Future projects and initiatives (Example: EXPO 2020).
• Various sectors flourishing due to growth in foreign trade and investments.
1
Establishment
Founded in 1982 and is headquartered in Dubai, UAE.
2
Purpose
Background Aramex PJCS provides logistics and transportation
solutions.
3
Segments
• International Express
• Freight Forwarding
• Domestic Express
• Logistics
• Other Operations
Aramex 7
1
IPO
1997 - First Arab company to trade its shares on the
NASDAQ
2005 – Went Public on DFM and so far generated returns of
183%
Background
2
Total Shares
1.46 Billion
3
Initial Offer Share Value
1.00 AED
Sector 8
Transportation
Industrials
Air Freight & Logistics
Aramex
Net income before extraordinary
items decreased 6% to AED270.4M
Financial Ratios
Financial Ratios
Net Profit Margin 7.86 8.36 8.72 8.11 9.82 11.83% Lower
Profitability
ratios
Return on investment 12.37 12.90 13.83 12.92 16.29 12.1% Higher
Price to Earning 12.0 16.6 14.6 13.5 16.9 14.48 Same Range
Market based
Market price to BV 1.5 2.2 2.1 2.1 2.7 1.82 Higher
Quick Ratio
Debt Ratio
2.5
0.7
Quick Ratio (Times)
2 2.01 0.6
1.75 0.5
Debt Ratio
1.63 1.65
1.5 0.4 0.43
1.3 0.373
Aramex Quick Ratio 0.3 0.3 0.325 Aramex Debt Ratio
1 0.258
0.68 0.78 Industry 0.2 Industry
0.5 0.62
0.43 0.34 0.1
0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Year Year
Trend Analysis 14
67.47
0 0.7
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Year Year
Trend Analysis 15
1
Establishment
• Started in 1962
• it is the only distributor for Pepsi Co. It produces
and distributes a wide range of products including
Pepsi, Mountain Dew, and Aquafina water.
2 Sector
Background • Bottle and soft drink distributor in the UAE.
3 Financial Position
• 90000000 Total Shares
• Current Stock price: 14.5
AED
Dubai Refreshments 18
Financial Ratios
Financial Ratios
Profitability
Net Profit Margin 16.06 13.79 14.25 15.27 12.37 13.74% Neutral
ratios
Return on investment 26.59 14.75 14.69 14.33 10.62 17.35% Much lower
Return on Equity 28.00 17.49 18.06 17.57 12.57 19.98% Much lower
Price to Earning 6.29 9.135 13.4 12.73 18.26 12.8 Higher
Market based
Market price to BV 3.16 1.64 2.35 2.12 2.29 - NA
Dividend
Payout ratio 22.6 36.5 39.7 40.3 50.7 40.01 Higher
policy
Dividend Yield 3.3% 4.11% 2.9% 2.8% 3.01% 3.33% Aligned
Trend Analysis 20
Trend Analysis 21
NCC Company 22
1
Establishment
• Founded in 1968 in Dubai.
2
Purpose
• Deals with, Cement Manufacturers, Cement
Background Stockiest.
• Servers the UAE and GCC markets with an array
of branded cement products.
3 Sector Segments
• Industrial
• Construction Raw Material
• Capital Goods.
NCC Company 23
1
IPO
2005 – Went Public on DFM and so far generated returns of
183%
2
Total Shares
Background 358.8 M
IPO: 1.00 AED
3
Initial Offer Share Value
Financial Ratios
Asset Inventory Turnover 2.28 2.9 3.57 3.93 3.86 2.29 Higher
Management Fixed asset Turnover 0.98 1.19 1.17 1.41 1.36 1.37 Within
Total Asset turnover 0.09 0.11 0.1 0.12 0.12 0.17 Lower
Financial Ratios
Net Profit Margin 0.36 0.42 0.49 0.36 0.35 0.34 Within
Profitability
ratios
Return on investment 0.03 0.04 0.05 0.04 0.04 0.05 Within
1 Establishment
• 1997 | Founder: HE/Mohamed Alabbar
Sector
2 • Operates internationally providing
property development and management
services.
Background • Over 60 active companies, with presence
in 36 markets (Asia, North Africa, Europe
3 and NA).
Financial Position
• IPO: 6.03AED
• Total shares: 7.16 Billion
• Current Stock price: 6.23
AED
• In 2017, total revenue
increased by 21% (Dh18.812
billion).
Emaar Properties 31
Financial Ratios
Financial Ratios
Profitability
Net Profit Margin 25.7% 24.9% 33.3% 29.9% 33.7% 42.25% Lower
ratios
Return on investment 21.2% 25.7% 32.9% 40.8% 52.3% 9.45% Higher
Return on Equity 6.6% 7.7% 9.8% 11.5% 13.2% 11.73% Higher
Price to Earning 10.7 19.6 16.5 10.4 11.0 15.39 Lower
Market based
Market price to BV 4.9 5.0 5.8 5.2 5.8 4.37 Higher
Dividend
Payout ratio 28.6 25.6 34 255.8 23.1 - -
policy
Dividend Yield 9% 9% 141% 15% 15% 2.93% Very High
Trend Analysis 33
Debt Ratio
Quick Ratio
0.70
2
0.60 0.57
0.56 0.52
1.5 0.50
0.47 0.47
0.40
1 0.30
0.85
0.66 0.7 0.20
0.5 0.44 0.5
0.10
0 0.00
2012 2013 2014 2015 2016
1 2 3 4 5
Emaar Properties PJSC Standards
Emaar Properties PJSC Standards
Trend Analysis 34
ROI ROE
60.0% 14%
13%
50.0% 52.3% 12% 12%
40.0% 40.8% 10% 10%
32.9% 8% 8%
30.0% 7%
25.7% 6%
20.0% 21.2%
4%
10.0% 2%
0.0% 0%
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Emaar Properties PJSC Standards Emaar Properties PJSC Standards
Trend Analysis 36
SWOT Analysis 37
STRENGTHS WEAKNESSES
Resources and
Internal financial
Study undertaken by
an organization to
capabilities for
competitive advantage
• Products and services
• Human capital
• Intangibles
S W
elements:
• Debt
• Lack of income
• Cash deficiencies
• Features exclusive to
identify its internal your market
strengths and
weaknesses, as well as
its external External factors that
opportunities and threaten business:
O
• Income
threats. • Investments
• Debt reduction
• Interest reduction T • What competitors
do better, lower
prices, better
range of services,
etc.
OPPORTUNITIES THREATS
Conclusion about NCC Company 38
Positive
Areas for
Improvement • Liquidity
• ROI
• Debt Ratios
• net profit
margin
Conclusion about NCC Company 39
Positive
• ROI
• ROE
Conclusion about NCC Company 40
Positive
Areas for
Improvement • ROI
Positive
Areas for
Improvement • liquidity to pay its short and long term
• Avg Collection period to be improved to obligations
stabilize the cash flow and reduce liabilities • Lower P/E is a good investment especially
• Assets performance to generate revenues with booming in construction industry
• Low payout ratio however will not effect if
there is increase in stock price
Thank you
Any Questions ?