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

OPERATING CASH FLOW(Y) Lowest at SAR 213.97 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,197.18
ROCE(HY) Lowest at 13.54%

Below par performance in long term as well as near term

Along with generating -41.12% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in the last 3 years, 1 year and 3 months

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Al Hammadi Holding

-100.0%

-2.07

23.51%

Saudi Arabia All Share TASI

-11.13%

-0.71

15.65%

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)

0.56

Tax Ratio

4.23%

Dividend Payout Ratio

66.12%

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

2.86

EV to EBIT

20.70

EV to EBITDA

15.36

EV to Capital Employed

2.87

EV to Sales

4.68

PEG Ratio

Dividend Yield

2.53%

ROCE (Latest)

13.86%

ROE (Latest)

14.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.53 times

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 213.97 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,197.18

ROCE(HY)

Lowest at 13.54%

OPERATING PROFIT(Q)

Lowest at SAR 69.25 MM

PRE-TAX PROFIT(Q)

Lowest at SAR 49.22 MM

NET PROFIT(Q)

Lowest at SAR 51.89 MM

RAW MATERIAL COST(Y)

Grown by 15.29% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 8.31 %

OPERATING PROFIT MARGIN(Q)

Lowest at 23.48 %

EPS(Q)

Lowest at SAR 0.32

Here's what is working for Al Hammadi Holding

Debtors Turnover Ratio

Highest at 2.53 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Al Hammadi Holding

Interest Coverage Ratio

Lowest at 1,197.18 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at SAR 213.97 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)

Operating Profit

Lowest at SAR 69.25 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (SAR MM)

Pre-Tax Profit

Lowest at SAR 49.22 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 51.89 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Operating Profit Margin

Lowest at 23.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at SAR 0.32

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Highest at 8.31 %

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 15.29% (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 0.14 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income