Arabian Cement Co. (3010) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Arabian Cement Co.

Why is Arabian Cement Co. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of 4.03% and Operating profit at -8.03% over the last 5 years

Positive results in Jun 25

DEBTORS TURNOVER RATIO(HY) Highest at 4.36%

With ROE of 4.89%, it has a very attractive valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of -19.26%, its profits have fallen by -9.5%
At the current price, the company has a high dividend yield of 3.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.26% 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 Report

Verdict Report

How 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.

-19.56%

-1.28

19.77%

Saudi Arabia All Share TASI

-12.63%

-0.89

14.47%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.03%

EBIT Growth (5y)

-8.03%

EBIT to Interest (avg)

13.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.33

Tax Ratio

24.83%

Dividend Payout Ratio

93.69%

Pledged Shares

Institutional Holding

ROCE (avg)

6.95%

ROE (avg)

6.03%

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

0.87

EV to EBIT

15.54

EV to EBITDA

7.24

EV to Capital Employed

0.87

EV to Sales

2.36

PEG Ratio

Dividend Yield

3.88%

ROCE (Latest)

5.59%

ROE (Latest)

4.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

DEBTORS TURNOVER RATIO(HY)

Highest at 4.36%

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 184.58 MM

ROCE(HY)

Lowest at 4.76%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 243.78%

RAW MATERIAL COST(Y)

Grown by 43.91% (YoY

CASH AND EQV(HY)

Lowest at SAR 233.92 MM

DIVIDEND PER SHARE(HY)

Lowest at SAR 4.36

OPERATING PROFIT(Q)

Lowest at SAR 59.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 25.51 %

PRE-TAX PROFIT(Q)

Lowest at SAR 23.21 MM

NET PROFIT(Q)

Lowest at SAR 20.51 MM

EPS(Q)

Lowest at SAR 0.21

Here's what is working for Arabian Cement Co.

Debtors Turnover Ratio

Highest at 4.36%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Arabian Cement Co.

Operating Cash Flow

Lowest at SAR 184.58 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 59.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 25.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 23.21 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 20.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.21

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Cash and Eqv

Lowest at SAR 233.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at SAR 4.36

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SAR)

Dividend Payout Ratio

Lowest at 243.78%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 43.91% (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

Non Operating Income

Highest at SAR 0.23 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income