Al-Jouf Agricultural Development Co. (6070) 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-Jouf Agricultural Development Co.

Why is Al-Jouf Agricultural Development Co. ?

Poor Management Efficiency with a low ROCE of 5.94%

The company has been able to generate a Return on Capital Employed (avg) of 5.94% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 26.12% and Operating profit at 51.03% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.57% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -1.71%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at SAR 41.5 MM
ROCE(HY) Lowest at 6.22%
RAW MATERIAL COST(Y) Grown by 60.81% (YoY)

With ROE of 10.26%, it has a very attractive valuation with a 1.94 Price to Book Value

Over the past year, while the stock has generated a return of -7.90%, its profits have risen by 8.6% ; the PEG ratio of the company is 2.2
At the current price, the company has a high dividend yield of 2.3

Below par performance in long term as well as near term

Along with generating -7.90% 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 Other Agricultural Products)

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

Is Al-Jouf Agricultural Development Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Al-Jouf Agricultural Development Co.

-100.0%

-1.49

22.46%

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)

26.12%

EBIT Growth (5y)

51.03%

EBIT to Interest (avg)

28.07

Debt to EBITDA (avg)

0.92

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.56

Tax Ratio

3.51%

Dividend Payout Ratio

38.76%

Pledged Shares

Institutional Holding

ROCE (avg)

5.94%

ROE (avg)

7.57%

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

1.94

EV to EBIT

20.51

EV to EBITDA

11.12

EV to Capital Employed

1.68

EV to Sales

2.60

PEG Ratio

2.20

Dividend Yield

2.33%

ROCE (Latest)

8.18%

ROE (Latest)

10.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 41.5 MM

ROCE(HY)

Lowest at 6.22%

RAW MATERIAL COST(Y)

Grown by 60.81% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 44.27 %

PRE-TAX PROFIT(Q)

Lowest at SAR 3.33 MM

NET PROFIT(Q)

Lowest at SAR 2.32 MM

EPS(Q)

Lowest at SAR 0.07

Here's what is not working for Al-Jouf Agricultural Development Co.

Pre-Tax Profit

At SAR 3.33 MM has Fallen at -91.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 2.32 MM has Fallen at -93.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Operating Cash Flow

Lowest at SAR 41.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Pre-Tax Profit

Lowest at SAR 3.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 2.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Highest at 44.27 %

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 60.81% (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