Why is Al-Jouf Agricultural Development Co. ?
1
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)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 23.65% and Operating profit at 36.36% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 7.57% signifying low profitability per unit of shareholders funds
3
Flat results in Jun 25
- INTEREST(9M) At SAR 8.61 MM has Grown at 118.41%
- RAW MATERIAL COST(Y) Grown by 8.79% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at 32.34 %
4
With ROE of 10.47%, it has a very attractive valuation with a 1.76 Price to Book Value
- Over the past year, while the stock has generated a return of -32.34%, its profits have fallen by -3.1%
- At the current price, the company has a high dividend yield of 2.6
5
Below par performance in long term as well as near term
- Along with generating -32.34% 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
How much should you hold?
- Overall Portfolio exposure to Al-Jouf Agricultural Development Co. should be less than 10%
- Overall Portfolio exposure to Other Agricultural Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Al-Jouf Agricultural Development Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Al-Jouf Agricultural Development Co.
-33.0%
-1.69
21.38%
Saudi Arabia All Share TASI
-12.63%
-0.89
14.47%
Quality key factors
Factor
Value
Sales Growth (5y)
23.65%
EBIT Growth (5y)
36.36%
EBIT to Interest (avg)
28.07
Debt to EBITDA (avg)
0.92
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
0.52
Tax Ratio
3.51%
Dividend Payout Ratio
39.84%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.94%
ROE (avg)
7.57%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.76
EV to EBIT
17.07
EV to EBITDA
9.48
EV to Capital Employed
1.58
EV to Sales
2.60
PEG Ratio
NA
Dividend Yield
2.58%
ROCE (Latest)
9.25%
ROE (Latest)
10.47%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SAR 113.66 MM
DIVIDEND PER SHARE(HY)
Highest at SAR 6.78
NET SALES(Q)
At SAR 154.6 MM has Grown at 36.7%
-6What is not working for the Company
INTEREST(9M)
At SAR 8.61 MM has Grown at 118.41%
RAW MATERIAL COST(Y)
Grown by 8.79% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 32.34 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.78%
Here's what is working for Al-Jouf Agricultural Development Co.
Operating Cash Flow
Highest at SAR 113.66 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 154.6 MM has Grown at 36.7%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (SAR MM)
Dividend per share
Highest at SAR 6.78
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (SAR)
Here's what is not working for Al-Jouf Agricultural Development Co.
Interest
At SAR 8.61 MM has Grown at 118.41%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Debt-Equity Ratio
Highest at 32.34 %
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
Debtors Turnover Ratio
Lowest at 6.78%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 8.79% (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






