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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.71% and Operating profit at -14.48% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 10.71% and Operating profit at -14.48% over the last 5 years

With a fall in Net Sales of -3.22%, the company declared Very Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at SAR 1,070.57 MM
ROCE(HY) Lowest at 2.44%
INTEREST COVERAGE RATIO(Q) Lowest at 543.86

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arabian Drilling Co.

-13.1%

-0.91

34.01%

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)

10.71%

EBIT Growth (5y)

-14.48%

EBIT to Interest (avg)

4.29

Debt to EBITDA (avg)

1.19

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.39

Tax Ratio

8.68%

Dividend Payout Ratio

74.78%

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

Industry P/E

Price to Book Value

1.12

EV to EBIT

20.60

EV to EBITDA

6.60

EV to Capital Employed

1.09

EV to Sales

2.66

PEG Ratio

Dividend Yield

1.81%

ROCE (Latest)

5.27%

ROE (Latest)

4.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 1,070.57 MM

ROCE(HY)

Lowest at 2.44%

INTEREST COVERAGE RATIO(Q)

Lowest at 543.86

RAW MATERIAL COST(Y)

Grown by 44.07% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 45.79 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.19 times

NET SALES(Q)

Lowest at SAR 835.43 MM

OPERATING PROFIT(Q)

Lowest at SAR 301.06 MM

PRE-TAX PROFIT(Q)

Lowest at SAR 1.72 MM

NET PROFIT(Q)

Lowest at SAR -9.41 MM

EPS(Q)

Lowest at SAR -0.11

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

Net Profit

At SAR -9.41 MM has Fallen at -111.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Interest Coverage Ratio

Lowest at 543.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At SAR 1.72 MM has Fallen at -98.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Operating Cash Flow

Lowest at SAR 1,070.57 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 835.43 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Operating Profit

Lowest at SAR 301.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Pre-Tax Profit

Lowest at SAR 1.72 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 -9.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR -0.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Highest at 45.79 %

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 9.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 44.07% (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 1.79 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income