Almunajem Foods Co. () 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

Almunajem Foods Co.

Why is Almunajem Foods Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.46% and Operating profit at -3.26% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at SAR 165.83 MM
NET PROFIT(9M) At SAR 102.71 MM has Grown at -52.96%
INTEREST(HY) At SAR 9.75 MM has Grown at 69.55%

With ROE of 16.83%, it has a very attractive valuation with a 3.47 Price to Book Value

Over the past year, while the stock has generated a return of -48.56%, its profits have fallen by -46.4%
At the current price, the company has a high dividend yield of 1.7

Below par performance in long term as well as near term

Along with generating -48.56% 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 hold?

Overall Portfolio exposure to Almunajem Foods Co. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Almunajem Foods Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Almunajem Foods Co.

-100.0%

-1.87

28.38%

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)

7.46%

EBIT Growth (5y)

-3.26%

EBIT to Interest (avg)

64.92

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

2.97

Tax Ratio

4.74%

Dividend Payout Ratio

69.98%

Pledged Shares

Institutional Holding

ROCE (avg)

31.90%

ROE (avg)

25.89%

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

3.47

EV to EBIT

22.78

EV to EBITDA

18.15

EV to Capital Employed

2.77

EV to Sales

1.19

PEG Ratio

Dividend Yield

1.69%

ROCE (Latest)

12.16%

ROE (Latest)

16.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

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

RAW MATERIAL COST(Y)

Fallen by -4.34% (YoY

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 165.83 MM

NET PROFIT(9M)

At SAR 102.71 MM has Grown at -52.96%

INTEREST(HY)

At SAR 9.75 MM has Grown at 69.55%

ROCE(HY)

Lowest at 15.35%

DEBT-EQUITY RATIO (HY)

Highest at 22.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.51 times

OPERATING PROFIT(Q)

Lowest at SAR 47.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.77 %

Here's what is working for Almunajem Foods Co.

Raw Material Cost

Fallen by -4.34% (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 12.22 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 Almunajem Foods Co.

Interest

At SAR 9.75 MM has Grown at 69.55%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Net Profit

At SAR 102.71 MM has Grown at -52.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Operating Cash Flow

Lowest at SAR 165.83 MM

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 47.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 5.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 22.8 %

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

Inventory Turnover Ratio

Lowest at 3.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio