Arabian Contracting Services 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

Arabian Contracting Services Co.

Why is Arabian Contracting Services Co. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 29.97% and Operating profit at 23.40% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 21.02% signifying low profitability per unit of shareholders funds
OPERATING CASH FLOW(Y) Lowest at SAR 52.27 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 16.06 times
INTEREST(Q) At SAR 99.38 MM has Grown at inf%

With ROE of -27.81%, it has a risky valuation with a 5.75 Price to Book Value

Over the past year, while the stock has generated a return of -12.01%, its profits have fallen by -210.8%

Below par performance in long term as well as near term

Along with generating -12.01% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Arabian Contracting Services Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arabian Contracting Services Co.

-100.0%

-1.36

37.38%

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)

29.97%

EBIT Growth (5y)

23.40%

EBIT to Interest (avg)

3.90

Debt to EBITDA (avg)

2.64

Net Debt to Equity (avg)

7.91

Sales to Capital Employed (avg)

0.39

Tax Ratio

9.97%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

255.70%

ROE (avg)

21.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.75

EV to EBIT

16.84

EV to EBITDA

7.46

EV to Capital Employed

2.33

EV to Sales

4.56

PEG Ratio

Dividend Yield

ROCE (Latest)

13.83%

ROE (Latest)

-27.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

NET PROFIT(HY)

Higher at SAR 485.12 MM

CASH AND EQV(HY)

Highest at SAR 558.46 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 52.27 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.06 times

INTEREST(Q)

At SAR 99.38 MM has Grown at inf%

NET PROFIT(Q)

At SAR 9.22 MM has Fallen at -80.51%

RAW MATERIAL COST(Y)

Grown by 32.03% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.52 times

NET SALES(Q)

Lowest at SAR 415.65 MM

PRE-TAX PROFIT(Q)

Fallen at -55.49%

Here's what is working for Arabian Contracting Services Co.

Cash and Eqv

Highest at SAR 558.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

At SAR 138.3 MM has Grown at 61.81%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (SAR MM)

Here's what is not working for Arabian Contracting Services Co.

Interest

At SAR 99.38 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Net Profit

At SAR 9.22 MM has Fallen at -80.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Inventory Turnover Ratio

Lowest at 16.06 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at SAR 52.27 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Net Sales

Lowest at SAR 415.65 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Net Sales

Fallen at -23.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Pre-Tax Profit

Fallen at -55.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Debtors Turnover Ratio

Lowest at 1.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 32.03% (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