By Satish Kanady
DOHA: Five companies in Qatar has featured in the list of ‘most valuable non-banking companies in the GCC’. The selection is based on financial performance and quantitative methods of the companies.
The companies included in the list of Marmore Mena Intelligence’s ‘Most Valuable 30 GCC Companies’ are: Qatar Fuel, Widam Food, Medicare Group, Mazya Qatar and Al Meera.
For selecting the most valuable non-banking companies in GCC, Marmore, a subsidiary of Markaz Investment Bank and Asset Management firm, used three parametres: Return on Equity (ROE), Debt-to-Equity (D/E) and average profit after tax (PAT) growth percentage for the past three financial years with weightage of 40 percent, 40 percent and 20 percent, respectively. These were applied after weeding out companies that had lower free float market capitalisation (less than 65 percent) and companies that incurred loss in any of the past three financial years.
Financial services and banks are not considered as their leverage ratios are higher due to their business model and comparison with companies in other sectors would be misleading.
ROE is one of the important parametres that is used to evaluate the strength as well as the return the company generates for the equity holders. ROE is also a measure of efficiency of functioning of the company. Debt to equity (D/E) indicates the leverage and thereby the risk the company faces due to its capital structure. As D/E ratio is a comparative measure, we have ranked the companies based on the measure to indicate companies that are less risky and have durable business models compared to other companies in GCC. PAT growth percentage is considered as it is important for the companies to increase their profits over the years in order to be sustainable.
The top most valuable companies have been weighted on the three parametres and ranked based on the quality score. Saudi’s Jarir Marketing ranked top. With its low leverage of 0.03 and average annual PAT growth percentage of 13 percent registered an astonishing ROE of 57.86 percent. This indicates that the company operates with minimum risk and yet has generated better returns for the equity holders.
Qatar’s Medicare, ranked third, registered average annual PAT growth percentage of 68 percent. Medicare group’s net profits surged by 316 percent from $12m in 2012 to $50m in 2015.
The Peninsula
By Satish Kanady
DOHA: Five companies in Qatar has featured in the list of ‘most valuable non-banking companies in the GCC’. The selection is based on financial performance and quantitative methods of the companies.
The companies included in the list of Marmore Mena Intelligence’s ‘Most Valuable 30 GCC Companies’ are: Qatar Fuel, Widam Food, Medicare Group, Mazya Qatar and Al Meera.
For selecting the most valuable non-banking companies in GCC, Marmore, a subsidiary of Markaz Investment Bank and Asset Management firm, used three parametres: Return on Equity (ROE), Debt-to-Equity (D/E) and average profit after tax (PAT) growth percentage for the past three financial years with weightage of 40 percent, 40 percent and 20 percent, respectively. These were applied after weeding out companies that had lower free float market capitalisation (less than 65 percent) and companies that incurred loss in any of the past three financial years.
Financial services and banks are not considered as their leverage ratios are higher due to their business model and comparison with companies in other sectors would be misleading.
ROE is one of the important parametres that is used to evaluate the strength as well as the return the company generates for the equity holders. ROE is also a measure of efficiency of functioning of the company. Debt to equity (D/E) indicates the leverage and thereby the risk the company faces due to its capital structure. As D/E ratio is a comparative measure, we have ranked the companies based on the measure to indicate companies that are less risky and have durable business models compared to other companies in GCC. PAT growth percentage is considered as it is important for the companies to increase their profits over the years in order to be sustainable.
The top most valuable companies have been weighted on the three parametres and ranked based on the quality score. Saudi’s Jarir Marketing ranked top. With its low leverage of 0.03 and average annual PAT growth percentage of 13 percent registered an astonishing ROE of 57.86 percent. This indicates that the company operates with minimum risk and yet has generated better returns for the equity holders.
Qatar’s Medicare, ranked third, registered average annual PAT growth percentage of 68 percent. Medicare group’s net profits surged by 316 percent from $12m in 2012 to $50m in 2015.
The Peninsula
