Arabian Drilling 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 Drilling Co.

Why is Arabian Drilling Co. ?

Poor Management Efficiency with a low ROCE of 8.84%

The company has been able to generate a Return on Capital Employed (avg) of 8.84% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.29% and Operating profit at -37.82% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.29% and Operating profit at -37.82% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at -2.44%
NET SALES(Q) Lowest at SAR 821.61 MM
PRE-TAX PROFIT(Q) At SAR 13.3 MM has Fallen at -84.2%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 4.78%, its profits have fallen by -123.4%
At the current price, the company has a high dividend yield of 1.6

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 Construction)

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

Is Arabian Drilling Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arabian Drilling Co.

-100.0%

-0.89

36.45%

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)

8.29%

EBIT Growth (5y)

-37.82%

EBIT to Interest (avg)

4.29

Debt to EBITDA (avg)

1.19

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.40

Tax Ratio

8.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.84%

ROE (avg)

8.24%

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

1.27

EV to EBIT

65.08

EV to EBITDA

8.54

EV to Capital Employed

1.19

EV to Sales

2.83

PEG Ratio

Dividend Yield

1.65%

ROCE (Latest)

1.83%

ROE (Latest)

-1.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 10.16 times

-17What is not working for the Company

ROCE(HY)

Lowest at -2.44%

NET SALES(Q)

Lowest at SAR 821.61 MM

PRE-TAX PROFIT(Q)

At SAR 13.3 MM has Fallen at -84.2%

NET PROFIT(Q)

At SAR 7.05 MM has Fallen at -90.62%

RAW MATERIAL COST(Y)

Grown by 40.09% (YoY

Here's what is working for Arabian Drilling Co.

Inventory Turnover Ratio

Highest at 10.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Net Sales

Lowest at SAR 821.61 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (SAR MM)

Pre-Tax Profit

At SAR 13.3 MM has Fallen at -84.2%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 7.05 MM has Fallen at -90.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Raw Material Cost

Grown by 40.09% (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