Advanced Petrochemical Co. (2330) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Advanced Petrochemical Co.

Why is Advanced Petrochemical Co. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.54%

Poor long term growth as Net Sales has grown by an annual rate of 9.43% and Operating profit at -4.32% over the last 5 years
The company is Net-Debt Free

With ROE of 7.50%, it has a fair valuation with a 1.86 Price to Book Value

Over the past year, while the stock has generated a return of -11.44%, its profits have risen by 538.5% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.44% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in each of the last 3 annual periods

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 Specialty Chemicals)

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

Is Advanced Petrochemical Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Advanced Petrochemical Co.

-11.44%

-1.02

34.80%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.43%

EBIT Growth (5y)

-4.32%

EBIT to Interest (avg)

77.07

Debt to EBITDA (avg)

9.41

Net Debt to Equity (avg)

2.91

Sales to Capital Employed (avg)

0.23

Tax Ratio

41.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.54%

ROE (avg)

10.15%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.86

EV to EBIT

31.38

EV to EBITDA

18.08

EV to Capital Employed

1.22

EV to Sales

4.26

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

3.88%

ROE (Latest)

7.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

18What is working for the Company

NET PROFIT(HY)

At SAR 31 MM has Grown at 855.27%

OPERATING CASH FLOW(Y)

Highest at SAR 786.5 MM

ROCE(HY)

Highest at 6.24%

NET SALES(Q)

At SAR 1,079.07 MM has Grown at 23.25%

-14What is not working for the Company

INTEREST(HY)

At SAR 254.25 MM has Grown at 1,552.24%

RAW MATERIAL COST(Y)

Grown by 6.13% (YoY

CASH AND EQV(HY)

Lowest at SAR 245.57 MM

DEBT-EQUITY RATIO (HY)

Highest at 310.45 %

PRE-TAX PROFIT(Q)

At SAR 30.83 MM has Fallen at -47.82%

NET PROFIT(Q)

At SAR 29.91 MM has Fallen at -47.12%

Here's what is working for Advanced Petrochemical Co.

Operating Cash Flow

Highest at SAR 786.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Net Sales

At SAR 1,079.07 MM has Grown at 23.25%

over average net sales of the previous four periods of SAR 875.48 MM

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Here's what is not working for Advanced Petrochemical Co.

Interest

At SAR 254.25 MM has Grown at 1,552.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Pre-Tax Profit

At SAR 30.83 MM has Fallen at -47.82%

over average net sales of the previous four periods of SAR 59.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 29.91 MM has Fallen at -47.12%

over average net sales of the previous four periods of SAR 56.56 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Cash and Eqv

Lowest at SAR 245.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 310.45 %

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

Raw Material Cost

Grown by 6.13% (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

Non Operating Income

Highest at SAR 0.89 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income