Al Hammadi Holding (4007) 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

Al Hammadi Holding

Why is Al Hammadi Holding ?

Poor Management Efficiency with a low ROCE of 12.92%

The company has been able to generate a Return on Capital Employed (avg) of 12.92% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 4.64% and Operating profit at 7.70% over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at SAR 63.69 MM
ROCE(HY) Lowest at 11.19%
INTEREST COVERAGE RATIO(Q) Lowest at 986.15

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.36% 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 Hospital)

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

Is Al Hammadi Holding for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Al Hammadi Holding

-100.0%

-1.72

24.27%

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)

4.64%

EBIT Growth (5y)

7.70%

EBIT to Interest (avg)

11.69

Debt to EBITDA (avg)

0.36

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.55

Tax Ratio

4.23%

Dividend Payout Ratio

72.77%

Pledged Shares

Institutional Holding

ROCE (avg)

12.92%

ROE (avg)

13.29%

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

2.06

EV to EBIT

16.73

EV to EBITDA

12.15

EV to Capital Employed

2.02

EV to Sales

3.40

PEG Ratio

Dividend Yield

1.18%

ROCE (Latest)

12.09%

ROE (Latest)

13.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.94% (YoY

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 63.69 MM

ROCE(HY)

Lowest at 11.19%

INTEREST COVERAGE RATIO(Q)

Lowest at 986.15

OPERATING PROFIT MARGIN(Q)

Lowest at 21.18 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 56.9%

DEBT-EQUITY RATIO (HY)

Highest at 12.85 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.41 times

DIVIDEND PER SHARE(HY)

Lowest at SAR 2.27

INTEREST(Q)

Highest at SAR 6.85 MM

OPERATING PROFIT(Q)

Lowest at SAR 67.57 MM

PRE-TAX PROFIT(Q)

Lowest at SAR 45.69 MM

Here's what is working for Al Hammadi Holding

Raw Material Cost

Fallen by 0.94% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Al Hammadi Holding

Operating Cash Flow

Lowest at SAR 63.69 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Interest Coverage Ratio

Lowest at 986.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 21.18 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

Highest at SAR 6.85 MM

in the last five periods and Increased by 15.41% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Operating Profit

Lowest at SAR 67.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Pre-Tax Profit

Lowest at SAR 45.69 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Debt-Equity Ratio

Highest at 12.85 %

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

Inventory Turnover Ratio

Lowest at 9.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at SAR 2.27

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SAR)

Dividend Payout Ratio

Lowest at 56.9%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)