ScoreWhy is Arabian Cement Co. ?
1
Poor Management Efficiency with a low ROCE of 6.95%
- The company has been able to generate a Return on Capital Employed (avg) of 6.95% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 4.03% and Operating profit at -4.46% over the last 5 years
3
With a growth in Net Profit of 161.43%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at SAR 237.96 MM
- ROCE(HY) Highest at 7.41%
- DEBTORS TURNOVER RATIO(HY) Highest at 4.84 times
4
With ROE of 6.24%, it has a very attractive valuation with a 0.88 Price to Book Value
- Over the past year, while the stock has generated a return of -2.57%, its profits have fallen by -2.1%
- At the current price, the company has a high dividend yield of 3.7
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.57% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Arabian Cement Co. should be less than 10%
- Overall Portfolio exposure to Building Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arabian Cement Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arabian Cement Co.
-2.57%
-1.09
20.16%
Saudi Arabia All Share TASI
-0.13%
-0.01
13.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.03%
EBIT Growth (5y)
-4.46%
EBIT to Interest (avg)
13.02
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
0.35
Tax Ratio
24.83%
Dividend Payout Ratio
90.90%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.95%
ROE (avg)
6.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.88
EV to EBIT
11.84
EV to EBITDA
6.52
EV to Capital Employed
0.88
EV to Sales
2.05
PEG Ratio
NA
Dividend Yield
3.74%
ROCE (Latest)
7.40%
ROE (Latest)
6.24%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SAR 237.96 MM
ROCE(HY)
Highest at 7.41%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.84 times
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -56.84% (YoY
NET PROFIT(Q)
At SAR 58.94 MM has Grown at 161.43%
-2What is not working for the Company
CASH AND EQV(HY)
Lowest at SAR 212.95 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.13 times
Here's what is working for Arabian Cement Co.
Debtors Turnover Ratio
Highest at 4.84 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Operating Cash Flow
Highest at SAR 237.96 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SAR MM)
Net Profit
At SAR 58.94 MM has Grown at 161.43%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (SAR MM)
Raw Material Cost
Fallen by -56.84% (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 Arabian Cement Co.
Cash and Eqv
Lowest at SAR 212.95 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 1.13 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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