Palestine Real Estate Investment (PLSE:PRICO) - Share price, News & Analysis

Q: What is the Fair Price of PRICO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PRICO (JOD0.37) is trading below our estimate of [[fair value]] (JOD0.78)

PRICO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

PRICO Stock Overview

Palestine Real Estate Investment CO. PLC operates in the real estate and infrastructure sectors in Palestine.

Rewards

Trading at 52.7% below our estimate of its fair value

Earnings have grown 19.7% per year over the past 5 years

Risk Analysis

Volatile share price over the past 3 months

Does not have a meaningful market cap (JOD24M)

Palestine Real Estate Investment Competitors

Union Construction and Investment

PLSE:UCI

US$18.6m

Ramallah Summer Resorts

PLSE:RSR

د.أ11.4m

Al-Wataniah towers

PLSE:ABRAJ

US$15.4m

Al Aqariya Trading Investment

PLSE:AQARIYA

د.أ6.0m

Price History & Performance

Summary of all time highs, changes and price drops for Palestine Real Estate Investment
Historical stock prices
Current Share Price	د.أ0.37
52 Week High	د.أ0.46
52 Week Low	د.أ0.32
Beta	0.080
1 Month Change	-7.50%
3 Month Change	5.71%
1 Year Change	5.71%
3 Year Change	-5.13%
5 Year Change	-33.93%
Change since IPO	-40.32%

Shareholder Returns

	PRICO	PS Real Estate	PS Market
7D	-2.6%	-0.9%	0.9%
1Y	5.7%	4.9%	21.9%

Return vs Industry: PRICO matched the PS Real Estate industry which returned 4.9% over the past year.

Return vs Market: PRICO underperformed the PS Market which returned 21.9% over the past year.

Price Volatility

Is PRICO's price volatile compared to industry and market?
PRICO volatility
PRICO Average Weekly Movement	5.1%
Real Estate Industry Average Movement	5.8%
Market Average Movement	3.2%
10% most volatile stocks in PS Market	5.8%
10% least volatile stocks in PS Market	1.9%

Stable Share Price: PRICO is more volatile than 75% of PS stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PRICO's weekly volatility (5%) has been stable over the past year, but is still higher than 75% of PS stocks.

About the Company

Founded	Employees	CEO	Website
1994	n/a	n/a	https://www.prico.ps

Palestine Real Estate Investment CO. PLC operates in the real estate and infrastructure sectors in Palestine. The company engages in the residential, commercial, industrial city, and contracting projects.

Palestine Real Estate Investment Fundamentals Summary

How do Palestine Real Estate Investment's earnings and revenue compare to its market cap?
PRICO fundamental statistics
Market Cap	د.أ23.59m
Earnings (TTM)	-د.أ550.68k
Revenue (TTM)	د.أ5.88m

4.0x

P/S Ratio

-42.9x

P/E Ratio

Is PRICO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRICO income statement (TTM)
Revenue	د.أ5.88m
Cost of Revenue	د.أ648.72k
Gross Profit	د.أ5.24m
Other Expenses	د.أ5.79m
Earnings	-د.أ550.68k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0086
Gross Margin	88.97%
Net Profit Margin	-9.36%
Debt/Equity Ratio	36.4%

How did PRICO perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PRICO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PRICO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PRICO. This is calculated by dividing PRICO's market cap by their current preferred multiple.
What is PRICO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	د.أ23.59m

PRICO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.5x
Enterprise Value/EBITDA	14.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PRICO's PS Ratio compare to its peers?

PRICO PS Ratio vs Peers

The above table shows the PS ratio for PRICO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	13.4x
UCI Union Construction and Investment	9.3x	n/a	US$18.6m
RSR Ramallah Summer Resorts	19.6x	n/a	د.أ11.4m
ABRAJ Al-Wataniah towers	22.5x	n/a	US$15.4m
AQARIYA Al Aqariya Trading Investment	2.1x	n/a	د.أ6.0m
PRICO Palestine Real Estate Investment	4x	n/a	د.أ23.6m

Forward PS

Price-To-Sales vs Peers: PRICO is good value based on its Price-To-Sales Ratio (4x) compared to the peer average (13.4x).

Price to Earnings Ratio vs Industry

How does PRICO's PE Ratio compare vs other companies in the Asian Real Estate Industry?

Price-To-Sales vs Industry: PRICO is good value based on its Price-To-Sales Ratio (4x) compared to the PS Real Estate industry average (11.4x)

Price to Sales Ratio vs Fair Ratio

What is PRICO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PRICO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PRICO's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PRICO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRICO (JOD0.37) is trading below our estimate of fair value (JOD0.78)

Significantly Below Fair Value: PRICO is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRICO's PEG Ratio to determine if it is good value.

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Future Growth

How is Palestine Real Estate Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.5%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Palestine Real Estate Investment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Palestine Real Estate Investment is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Palestine Real Estate Investment performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PRICO is currently unprofitable.

Growing Profit Margin: PRICO is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PRICO is unprofitable, but has reduced losses over the past 5 years at a rate of 19.7% per year.

Accelerating Growth: Unable to compare PRICO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRICO is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-17.5%).

Return on Equity

High ROE: PRICO has a negative Return on Equity (-1.84%), as it is currently unprofitable.

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Financial Health

How is Palestine Real Estate Investment's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PRICO's short term assets (JOD21.5M) exceed its short term liabilities (JOD21.0M).

Long Term Liabilities: PRICO's short term assets (JOD21.5M) exceed its long term liabilities (JOD16.2M).

Debt to Equity History and Analysis

Debt Level: PRICO's net debt to equity ratio (33%) is considered satisfactory.

Reducing Debt: PRICO's debt to equity ratio has reduced from 40.7% to 36.4% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PRICO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PRICO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 5% per year.

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Dividend

What is Palestine Real Estate Investment current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PRICO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PRICO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PRICO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRICO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: PRICO is not paying a notable dividend for the PS market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PRICO has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Palestine Real Estate Investment has no CEO, or we have no data on them.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31