Why is Arabian Internet & Communications Services Co. ?
1
Flat results in Jun 25
- RAW MATERIAL COST(Y) Grown by 10.41% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at -20.21 %
- INTEREST(Q) Highest at SAR 21.15 MM
2
With ROE of 45.08%, it has a fair valuation with a 8.74 Price to Book Value
- Over the past year, while the stock has generated a return of -19.27%, its profits have risen by 19.5% ; the PEG ratio of the company is 1
- At the current price, the company has a high dividend yield of 3.8
3
Below par performance in long term as well as near term
- Along with generating -19.27% 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
How much should you hold?
- Overall Portfolio exposure to Arabian Internet & Communications Services Co. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arabian Internet & Communications Services Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arabian Internet & Communications Services Co.
-20.53%
-0.79
26.95%
Saudi Arabia All Share TASI
-12.63%
-0.89
14.47%
Quality key factors
Factor
Value
Sales Growth (5y)
13.72%
EBIT Growth (5y)
18.54%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.57
Sales to Capital Employed (avg)
2.64
Tax Ratio
4.24%
Dividend Payout Ratio
59.62%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16,882.52%
ROE (avg)
15,493.19%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
8.74
EV to EBIT
17.92
EV to EBITDA
15.24
EV to Capital Employed
11.20
EV to Sales
2.51
PEG Ratio
0.99
Dividend Yield
3.81%
ROCE (Latest)
62.51%
ROE (Latest)
45.08%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
2What is working for the Company
ROCE(HY)
Highest at 46.7%
-7What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 10.41% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -20.21 %
INTEREST(Q)
Highest at SAR 21.15 MM
Here's what is not working for Arabian Internet & Communications Services Co.
Interest
At SAR 21.15 MM has Grown at 18.16%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Interest
Highest at SAR 21.15 MM
in the last five periods and Increased by 18.16% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Debt-Equity Ratio
Highest at -20.21 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 10.41% (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






