Almarai Co. Ltd. (2280) 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

Almarai Co. Ltd.

Why is Almarai Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 9.89%

The company has been able to generate a Return on Capital Employed (avg) of 9.89% signifying low profitability per unit of total capital (equity and debt)

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 7.52% and Operating profit at 3.35% 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 12.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.52% and Operating profit at 3.35% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

RAW MATERIAL COST(Y) Fallen by 1.01% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 10.81 times
DIVIDEND PER SHARE(HY) Highest at SAR 10.81

With ROE of 12.38%, it has a very expensive valuation with a 2.45 Price to Book Value

Over the past year, while the stock has generated a return of -27.53%, its profits have risen by 6.7% ; the PEG ratio of the company is 3
At the current price, the company has a high dividend yield of 2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Almarai Co. Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Almarai Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Almarai Co. Ltd.

-27.78%

-1.11

20.00%

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)

7.52%

EBIT Growth (5y)

3.35%

EBIT to Interest (avg)

5.90

Debt to EBITDA (avg)

2.03

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

0.69

Tax Ratio

6.69%

Dividend Payout Ratio

46.32%

Pledged Shares

Institutional Holding

ROCE (avg)

9.89%

ROE (avg)

12.01%

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

2.45

EV to EBIT

19.61

EV to EBITDA

10.88

EV to Capital Employed

1.91

EV to Sales

2.81

PEG Ratio

2.98

Dividend Yield

2.03%

ROCE (Latest)

9.73%

ROE (Latest)

12.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.01% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 10.81 times

DIVIDEND PER SHARE(HY)

Highest at SAR 10.81

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,087.97

DEBT-EQUITY RATIO (HY)

Highest at 60.97 %

OPERATING PROFIT(Q)

Lowest at SAR 1,306.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 23.94 %

PRE-TAX PROFIT(Q)

Lowest at SAR 498.26 MM

NET PROFIT(Q)

Lowest at SAR 467.34 MM

Here's what is working for Almarai Co. Ltd.

Debtors Turnover Ratio

Highest at 10.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at SAR 10.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SAR)

Raw Material Cost

Fallen by 1.01% (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 Almarai Co. Ltd.

Interest Coverage Ratio

Lowest at 1,087.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at SAR 1,306.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 23.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 498.26 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 467.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Debt-Equity Ratio

Highest at 60.97 %

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