Buy Or Sell Opportunity • May 21
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.0% to د.أ4.00. The fair value is estimated to be د.أ5.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.3% over the last 3 years. Earnings per share has grown by 34%. New Risk • Aug 31
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: د.أ69.4m (US$97.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Earnings have declined by 5.4% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (د.أ69.4m market cap, or US$97.9m). Reported Earnings • Aug 01
Second quarter 2025 earnings released: EPS: د.أ0.069 (vs د.أ0.056 in 2Q 2024) Second quarter 2025 results: EPS: د.أ0.069 (up from د.أ0.056 in 2Q 2024). Revenue: د.أ6.11m (up 9.6% from 2Q 2024). Net income: د.أ1.38m (up 24% from 2Q 2024). Profit margin: 23% (up from 20% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • May 05
First quarter 2025 earnings released First quarter 2025 results: Revenue: د.أ7.39m (up 11% from 1Q 2024). Net income: د.أ2.08m (up 54% from 1Q 2024). Profit margin: 28% (up from 20% in 1Q 2024). New Risk • Apr 26
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Jordanian stocks, typically moving 5.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (5.7% average weekly change). Earnings have declined by 15% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (د.أ64.0m market cap, or US$90.3m). New Risk • Feb 22
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 6.0% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 15% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (د.أ67.2m market cap, or US$94.8m). Reported Earnings • Feb 13
Full year 2024 earnings released: EPS: د.أ0.24 (vs د.أ0.14 in FY 2023) Full year 2024 results: EPS: د.أ0.24 (up from د.أ0.14 in FY 2023). Revenue: د.أ24.7m (up 11% from FY 2023). Net income: د.أ4.76m (up 69% from FY 2023). Profit margin: 19% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 6% per year. 공시 • Feb 12
Petra Education Company PLC, Annual General Meeting, Mar 22, 2025 Petra Education Company PLC, Annual General Meeting, Mar 22, 2025. Location: amman Jordan Buy Or Sell Opportunity • Dec 19
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 6.6% to د.أ2.89. The fair value is estimated to be د.أ2.40, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 20%. New Risk • Nov 04
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 97% Dividend yield: 4.6% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 20% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (97% cash payout ratio). Share price has been volatile over the past 3 months (6.1% average weekly change). Market cap is less than US$100m (د.أ52.6m market cap, or US$74.2m). Reported Earnings • Feb 21
Full year 2023 earnings released: EPS: د.أ0.14 (vs د.أ0.17 in FY 2022) Full year 2023 results: EPS: د.أ0.14 (down from د.أ0.17 in FY 2022). Revenue: د.أ22.2m (down 3.3% from FY 2022). Net income: د.أ2.81m (down 16% from FY 2022). Profit margin: 13% (down from 15% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. New Risk • Jul 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: د.أ70.0m (US$98.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Earnings have declined by 17% per year over the past 5 years. Minor Risk Market cap is less than US$100m (د.أ70.0m market cap, or US$98.8m). Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to د.أ3.60, the stock trades at a trailing P/E ratio of 24.1x. Average trailing P/E is 28x in the Consumer Services industry in Jordan. Reported Earnings • May 01
First quarter 2023 earnings released: EPS: د.أ0.054 (vs د.أ0.072 in 1Q 2022) First quarter 2023 results: EPS: د.أ0.054 (down from د.أ0.072 in 1Q 2022). Revenue: د.أ6.09m (down 6.9% from 1Q 2022). Net income: د.أ1.07m (down 25% from 1Q 2022). Profit margin: 18% (down from 22% in 1Q 2022). The decrease in margin was driven by lower revenue. Reported Earnings • Feb 18
Full year 2022 earnings released: EPS: د.أ0.17 (vs د.أ0.23 in FY 2021) Full year 2022 results: EPS: د.أ0.17 (down from د.أ0.23 in FY 2021). Revenue: د.أ22.9m (down 3.3% from FY 2021). Net income: د.أ3.35m (down 27% from FY 2021). Profit margin: 15% (down from 20% in FY 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improved over the past week After last week's 22% share price gain to د.أ4.09, the stock trades at a trailing P/E ratio of 21.3x. Average trailing P/E is 17x in the Consumer Services industry in Asia. Total returns to shareholders of 34% over the past three years. Reported Earnings • Oct 30
Third quarter 2022 earnings released: د.أ0.013 loss per share (vs د.أ0.002 loss in 3Q 2021) Third quarter 2022 results: د.أ0.013 loss per share (further deteriorated from د.أ0.002 loss in 3Q 2021). Revenue: د.أ4.53m (down 8.0% from 3Q 2021). Net loss: د.أ268.5k (loss widened د.أ228.9k from 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Board Change • May 18
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. No independent directors (12 non-independent directors). Chairman Moosa Abdul Aziz Shihadeh was the last director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Mar 24
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. No independent directors (12 non-independent directors). Chairman Moosa Abdul Aziz Shihadeh was the last director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Dec 29
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. No independent directors (12 non-independent directors). Chairman Moosa Abdul Aziz Shihadeh was the last director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • May 06
Full year 2020 earnings released: EPS د.أ0.29 (vs د.أ0.41 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: د.أ24.1m (down 11% from FY 2019). Net income: د.أ4.62m (down 30% from FY 2019). Profit margin: 19% (down from 25% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 03
Third quarter 2020 earnings released: EPS د.أ0.006 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: د.أ4.87m (down 8.3% from 3Q 2019). Net income: د.أ88.4k (down 70% from 3Q 2019). Profit margin: 1.8% (down from 5.6% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 10% per year.