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Dubai Financial Market PJSC (DFM:DFM) Financial Strength : 9 (As of Mar. 2025)


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What is Dubai Financial Market PJSC Financial Strength?

Dubai Financial Market PJSC has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Dubai Financial Market PJSC shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Dubai Financial Market PJSC's Interest Coverage for the quarter that ended in Mar. 2025 was 569.62. Dubai Financial Market PJSC's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.07. As of today, Dubai Financial Market PJSC's Altman Z-Score is 3.38.


Competitive Comparison of Dubai Financial Market PJSC's Financial Strength

For the Financial Data & Stock Exchanges subindustry, Dubai Financial Market PJSC's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dubai Financial Market PJSC's Financial Strength Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Dubai Financial Market PJSC's Financial Strength distribution charts can be found below:

* The bar in red indicates where Dubai Financial Market PJSC's Financial Strength falls into.


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Dubai Financial Market PJSC Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Dubai Financial Market PJSC's Interest Expense for the months ended in Mar. 2025 was د.إ-0.2 Mil. Its Operating Income for the months ended in Mar. 2025 was د.إ135.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was د.إ5.5 Mil.

Dubai Financial Market PJSC's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*135.57/-0.238
=569.62

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Dubai Financial Market PJSC has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Dubai Financial Market PJSC's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(43.226 + 5.451) / 747.78
=0.07

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Dubai Financial Market PJSC has a Z-score of 3.38, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.38 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Dubai Financial Market PJSC  (DFM:DFM) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Dubai Financial Market PJSC has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Dubai Financial Market PJSC Financial Strength Related Terms

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Dubai Financial Market PJSC Business Description

Traded in Other Exchanges
N/A
Address
Sheikh Zayed Road, P.O. Box 9700, Reception - Mezzanine Floor, Dubai World Trade Center Building, Dubai, ARE
Dubai Financial Market PJSC (DFM) operates as a regulated secondary market for the trading of securities issued by public shareholding companies, bonds issued by federal or local governments, local public institutions, and mutual funds as well as other local or foreign financial instruments. The company operates according to the principles of Sharia law. Revenue is derived from trading, investment, administration, and DFM's subsidiaries. Trading constitutes a majority of revenue.

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