Arabian Pipes Co. (2200) 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 Pipes Co.

Why is Arabian Pipes Co. ?

Poor Management Efficiency with a low ROCE of 15.22%

The company has been able to generate a Return on Capital Employed (avg) of 15.22% 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 15.87% and Operating profit at 78.80% 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 21.45% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(HY) At SAR 487.7 MM has Grown at -26.59%
ROCE(HY) Lowest at 26.4%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.06 times

With ROE of 29.30%, it has a expensive valuation with a 1.96 Price to Book Value

Over the past year, while the stock has generated a return of -47.93%, its profits have fallen by -29%

Below par performance in long term as well as near term

Along with generating -47.93% 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 Ferrous Metals)

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

Is Arabian Pipes Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arabian Pipes Co.

-100.0%

-1.06

39.63%

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)

15.87%

EBIT Growth (5y)

78.80%

EBIT to Interest (avg)

-0.13

Debt to EBITDA (avg)

2.01

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.53

Tax Ratio

3.34%

Dividend Payout Ratio

13.38%

Pledged Shares

Institutional Holding

ROCE (avg)

15.22%

ROE (avg)

21.45%

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

1.96

EV to EBIT

5.26

EV to EBITDA

4.37

EV to Capital Employed

1.74

EV to Sales

1.03

PEG Ratio

Dividend Yield

ROCE (Latest)

33.12%

ROE (Latest)

29.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 374.52 MM

INTEREST COVERAGE RATIO(Q)

Highest at 680.4

DEBT-EQUITY RATIO (HY)

Lowest at 11.74 %

-12What is not working for the Company

NET SALES(HY)

At SAR 487.7 MM has Grown at -26.59%

ROCE(HY)

Lowest at 26.4%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.06 times

RAW MATERIAL COST(Y)

Grown by 18.47% (YoY

OPERATING PROFIT(Q)

Lowest at SAR 35.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.04 %

Here's what is working for Arabian Pipes Co.

Interest Coverage Ratio

Highest at 680.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at SAR 374.52 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Debt-Equity Ratio

Lowest at 11.74 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Net Sales

At SAR 487.7 MM has Grown at -26.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (SAR MM)

Debtors Turnover Ratio

Lowest at 3.06 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at SAR 35.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 15.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 18.47% (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