Al Yamamah Steel Industries Co. (1304) 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 Yamamah Steel Industries Co.

Why is Al Yamamah Steel Industries Co. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -0.05% and Operating profit at -2.77% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 705.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.05% and Operating profit at -2.77% over the last 5 years

With a growth in Net Profit of 28.91%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
ROCE(HY) Highest at 18.37%
INTEREST COVERAGE RATIO(Q) Highest at 477.44
OPERATING PROFIT(Q) Highest at SAR 82.32 MM

With ROE of 13.49%, it has a fair valuation with a 2.60 Price to Book Value

Over the past year, while the stock has generated a return of 26.06%, its profits have risen by 109% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Al Yamamah Steel Industries Co. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Al Yamamah Steel Industries Co. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Al Yamamah Steel Industries Co.

26.06%

0.37

31.76%

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)

-0.05%

EBIT Growth (5y)

-2.77%

EBIT to Interest (avg)

5.74

Debt to EBITDA (avg)

3.01

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.22

Tax Ratio

35.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1,819.62%

ROE (avg)

705.67%

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

2.60

EV to EBIT

17.54

EV to EBITDA

13.25

EV to Capital Employed

1.68

EV to Sales

1.38

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

9.58%

ROE (Latest)

13.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

25What is working for the Company

ROCE(HY)

Highest at 18.37%

INTEREST COVERAGE RATIO(Q)

Highest at 477.44

OPERATING PROFIT(Q)

Highest at SAR 82.32 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.65 %

PRE-TAX PROFIT(Q)

Highest at SAR 52.05 MM

RAW MATERIAL COST(Y)

Fallen by -76.79% (YoY

NET SALES(Q)

Highest at SAR 525.87 MM

NET PROFIT(Q)

Highest at SAR 48.48 MM

EPS(Q)

Highest at SAR 0.95

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR -120.12 MM

DEBT-EQUITY RATIO (HY)

Highest at 155.97 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.57 times

INTEREST(Q)

Highest at SAR 17.24 MM

Here's what is working for Al Yamamah Steel Industries Co.

Interest Coverage Ratio

Highest at 477.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at SAR 82.32 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 15.65 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SAR 52.05 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SAR MM)

Net Sales

Highest at SAR 525.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Pre-Tax Profit

At SAR 52.05 MM has Grown at 129.05%

over average net sales of the previous four periods of SAR 22.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Net Profit

Highest at SAR 48.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

Net Profit

At SAR 48.48 MM has Grown at 108.77%

over average net sales of the previous four periods of SAR 23.22 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 0.95

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Raw Material Cost

Fallen by -76.79% (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

Depreciation

Highest at SAR 13.92 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SAR MM)

Here's what is not working for Al Yamamah Steel Industries Co.

Operating Cash Flow

Lowest at SAR -120.12 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

Highest at SAR 17.24 MM

in the last five periods and Increased by 8.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Debt-Equity Ratio

Highest at 155.97 %

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

Debtors Turnover Ratio

Lowest at 3.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio