ACWA Power Co. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ACWA Power Co.

Why is ACWA Power Co. ?

Poor Management Efficiency with a low ROCE of 6.04%

The company has been able to generate a Return on Capital Employed (avg) of 6.04% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 7.70% and Operating profit at 2.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.70% and Operating profit at 2.15% over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 132.32
PRE-TAX PROFIT(Q) At SAR 141.97 MM has Fallen at -77.27%
RAW MATERIAL COST(Y) Grown by 23.6% (YoY)

With ROE of 7.79%, it has a very expensive valuation with a 8.48 Price to Book Value

Over the past year, while the stock has generated a return of -52.22%, its profits have fallen by -19.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ACWA Power Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ACWA Power Co.

-51.92%

-1.38

38.98%

Saudi Arabia All Share TASI

-12.63%

-0.89

14.47%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.70%

EBIT Growth (5y)

2.15%

EBIT to Interest (avg)

1.84

Debt to EBITDA (avg)

7.51

Net Debt to Equity (avg)

1.15

Sales to Capital Employed (avg)

0.14

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.04%

ROE (avg)

9.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

109

Industry P/E

Price to Book Value

8.48

EV to EBIT

85.65

EV to EBITDA

71.04

EV to Capital Employed

4.43

EV to Sales

27.24

PEG Ratio

Dividend Yield

ROCE (Latest)

5.17%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 2,399.84 MM

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 132.32

PRE-TAX PROFIT(Q)

At SAR 141.97 MM has Fallen at -77.27%

RAW MATERIAL COST(Y)

Grown by 23.6% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 118.43 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.19%

OPERATING PROFIT(Q)

Lowest at SAR 529.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 29.04 %

NET PROFIT(Q)

Lowest at SAR 188.94 MM

Here's what is working for ACWA Power Co.

Operating Cash Flow

Highest at SAR 2,399.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Here's what is not working for ACWA Power Co.

Interest Coverage Ratio

Lowest at 132.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At SAR 141.97 MM has Fallen at -77.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Operating Profit

Lowest at SAR 529.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 29.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at SAR 188.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Net Profit

Fallen at -72.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Debt-Equity Ratio

Highest at 118.43 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 1.19%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 23.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales