ScoreWhy is Ades Holding Co. ?
1
Poor Management Efficiency with a low ROCE of 7.39%
- The company has been able to generate a Return on Capital Employed (avg) of 7.39% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 27.52% and Operating profit at 27.49% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 13.75% signifying low profitability per unit of shareholders funds
3
Flat results in Mar 26
- INVENTORY TURNOVER RATIO(HY) Lowest at 6.29 times
- INTEREST COVERAGE RATIO(Q) Lowest at 363.22
- OPERATING PROFIT MARGIN(Q) Lowest at 47.57 %
4
With ROE of 10.94%, it has a very attractive valuation with a 2.79 Price to Book Value
- Over the past year, while the stock has generated a return of 42.56%, its profits have fallen by -9.3%
- At the current price, the company has a high dividend yield of 1.3
5
Market Beating performance in long term as well as near term
- Along with generating 42.56% returns in the last 1 year, the stock has outperformed Saudi Arabia All Share TASI in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Ades Holding Co. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Ades Holding Co. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Ades Holding Co.
42.56%
0.09
34.32%
Saudi Arabia All Share TASI
-0.13%
-0.01
13.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.52%
EBIT Growth (5y)
27.49%
EBIT to Interest (avg)
1.72
Debt to EBITDA (avg)
6.47
Net Debt to Equity (avg)
1.79
Sales to Capital Employed (avg)
0.31
Tax Ratio
16.84%
Dividend Payout Ratio
60.59%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.39%
ROE (avg)
13.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
2.79
EV to EBIT
17.18
EV to EBITDA
9.42
EV to Capital Employed
1.64
EV to Sales
4.82
PEG Ratio
NA
Dividend Yield
1.29%
ROCE (Latest)
9.56%
ROE (Latest)
10.94%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SAR 2,236.18 MM
NET SALES(Q)
Highest at SAR 2,390.74 MM
OPERATING PROFIT(Q)
Highest at SAR 1,137.28 MM
EPS(Q)
Highest at SAR 0.21
-10What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.29 times
INTEREST COVERAGE RATIO(Q)
Lowest at 363.22
OPERATING PROFIT MARGIN(Q)
Lowest at 47.57 %
RAW MATERIAL COST(Y)
Grown by 8.78% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 266.73 %
INTEREST(Q)
Highest at SAR 313.11 MM
Here's what is working for Ades Holding Co.
Net Sales
Highest at SAR 2,390.74 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (SAR MM)
Operating Profit
Highest at SAR 1,137.28 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (SAR MM)
Operating Cash Flow
Highest at SAR 2,236.18 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SAR MM)
Net Sales
At SAR 2,390.74 MM has Grown at 62.62%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (SAR MM)
EPS
Highest at SAR 0.21
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (SAR)
Depreciation
Highest at SAR 474.37 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (SAR MM)
Here's what is not working for Ades Holding Co.
Interest Coverage Ratio
Lowest at 363.22
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 47.57 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 6.29 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest
Highest at SAR 313.11 MM
in the last five periods and Increased by 14.99% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Debt-Equity Ratio
Highest at 266.73 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 8.78% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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