I think there is a valid short opp in here.
here is more fundamental analysis (done by chatgpt). Maybe we have a good opp in here since the chatgpt reveled something interesting in here. I have highlighted the information with black.
Ibnsina Pharma is a prominent pharmaceutical distribution company in Egypt, listed on the Egyptian Exchange under the ticker symbol ISPH. Established in 2001, the company distributes a wide range of pharmaceutical and cosmetic products to both private and public-sector clients, including pharmacies, hospitals, and healthcare institutions.
INVESTING.COM
Financial Overview:
Revenue: In 2023, Ibnsina Pharma reported revenues of approximately EGP 33.95 billion.
BARRONS.COM
Net Income: The net income for the same period was EGP 173.14 million, resulting in a net profit margin of 0.51%.
BARRONS.COM
Total Assets and Liabilities: The company’s total assets stood at EGP 18.55 billion, with total liabilities amounting to EGP 17.1 billion, indicating a debt-to-assets ratio of 92.19%.
BARRONS.COM
Shareholder Structure:
Ibnsina Pharma’s ownership is diversified among prominent entities:
Free Float: 40.7%
Abdel Gawad Family: 15.0%
Faisal Islamic Bank: 14.0%
Mahgoub Family: 12.9%
European Bank for Reconstruction and Development (EBRD): 9.6%
Blom Investment: 7.8%
This diverse shareholder base has enhanced the company’s corporate governance practices.
IR.IBNSINA-PHARMA.COM
Stock Performance:
As of January 29, 2025, the stock closed at EGP 7.02 per share, with a 52-week range between EGP 2.14 and EGP 7.59.
IR.IBNSINA-PHARMA.COM
Considerations for Investors:
While Ibnsina Pharma has demonstrated significant revenue generation, its net profit margin is relatively low, and the company operates with a high debt-to-assets ratio. Potential investors should weigh these factors carefully and consider consulting with a financial advisor to determine if this investment aligns with their risk tolerance and financial objectives.,# Analysis of Ibnsina Pharma: A Potential Short Opportunity
## Key Points
– **Company Overview**: Ibnsina Pharma, listed on the Egyptian Exchange (Ticker: ISPH), specializes in the distribution of pharmaceuticals and cosmetics, serving both private and public sectors since 2001.
– **Financial Performance**:
– **Revenue**: The company reported revenues of approximately EGP 33.95 billion in 2023.
– **Net Income**: The net income for 2023 was EGP 173.14 million, yielding a net profit margin of just 0.51%.
– **Financial Health**:
– **Assets and Liabilities**: Total assets are reported at EGP 18.55 billion against total liabilities of EGP 17.1 billion, resulting in a high debt-to-assets ratio of 92.19%.
– **Ownership Structure**:
– Diverse shareholder base includes Free Float (40.7%), Abdel Gawad Family (15.0%), Faisal Islamic Bank (14.0%), and several other institutional and familial investors, enhancing corporate governance.
– **Stock Performance**: As of January 29, 2025, the stock is priced at EGP 7.02, with a 52-week range from EGP 2.14 to EGP 7.59.
– **Investment Considerations**: Despite strong revenue, the low net profit margin and high debt-to-assets ratio raise red flags for potential investors. Caution is advised, and consulting with financial advisors is recommended.
## Conclusion
In summary, while Ibnsina Pharma demonstrates strong revenue generation capabilities, the financial metrics suggest a precarious position due to a low profit margin and high leverage. Investors considering a position in this stock should take heed of the potential risks, including the company’s frail profit performance relative to its debt load. Given these factors, a short opportunity may be valid, particularly if market conditions worsen or if the company fails to improve profitability.
Disclaimer. The opinions expressed by our writers are their own and do not represent the views of JustInvestNews. The financial and market information provided on JustInvestNews is intended for informational purposes only. JustInvestNews is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Original article: https://www.tradingview.com/chart/ISPH/k3RUXk91-ISPH-Short/
