Long,Pioneers Holding (EGX: ASPI) Pioneers Holding (EGX: ASPI) has several key financial indicators that you should consider before making any investment decisions. Here's a breakdown of the company's financial position and
performance:
fundamentals Analysis
1. Stock Performance & Valuation:
• Current Price: 0.278 EGP
• Book Value Per Share: 0.35 EGP (suggests the stock is trading below book value, which could indicate undervaluation)
• Based on Book Value Multiple → 0.60 EGP
• Based on P/E Ratio → 0.41 EGP
• The stock is currently trading at a significant discount compared to both valuation benchmarks:
o 53.7% discount to the book value multiple (0.278 vs. 0.60 EGP).
o 32.2% discount to the fair value based on the sector’s P/E ratio (0.278 vs. 0.41 EGP).
• EPS: 0.07 EGP
• 52-Week Price Change: -32.05% (significant decline, suggesting weak market sentiment or financial concerns)
2. Financial Health & Liquidity:
• Cash: 498.11M EGP
• Debt: 875.23M EGP (debt exceeds cash, leading to a net debt of -377.12M EGP)
• Net Cash Per Share: -0.19 EGP (indicating a negative net cash position, which raises concerns about liquidity and financial stability)
• Working Capital: -134.22M EGP (negative, suggesting possible short-term liquidity issues)
3. Profitability & Margins:
• Revenue: 345.92M EGP
• Net Income: 76.01M EGP (net margin of 21.97%, which is decent)
• Gross Margin: 22.94% (moderate, indicating the company retains a reasonable portion of revenue after direct costs)
• Operating Margin: 16.82% (suggesting the company has good cost control, but interest expenses may be a concern given the high debt levels)
4. Key Takeaways:
✅ Positive Factors:
• Profitable with a 21.97% net profit margin
• Trading below book value (0.278 EGP vs. 0.35 EGP), which might indicate undervaluation
• Stable earnings per share (EPS: 0.07 EGP)
⚠️ Concerns:
• High debt (875.23M EGP) relative to cash reserves
• Negative working capital (-134.22M EGP), which could pose liquidity risks
• Stock has underperformed significantly in the last year (-32.05%)
Investment Consideration:
According to Tracxn, Pioneers Holding has a Tracxn score of 34 out of 100, positioning it ahead of Beltone (29/100) but indicating room for growth compared to leading firms in the sector.
• Value Perspective: If you believe the company can improve its balance sheet and market sentiment shifts, this could be an undervalued opportunity.
• Risk Consideration: The negative cash position and high debt may pose risks, especially if interest rates rise or earnings decline.
Tech. Analysis
see the chart mark refer to GANN & Elliot wave
