ScoreWhy is Arabian Pipes Co. ?
1
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)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 18.81% and Operating profit at 22.77% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 21.45% signifying low profitability per unit of shareholders funds
3
The company has declared Negative results for the last 3 consecutive quarters
- NET SALES(HY) At SAR 331.99 MM has Grown at -20.37%
- ROCE(HY) Lowest at 19.04%
- INTEREST(Q) At SAR 3.06 MM has Grown at 35.75%
4
With ROE of 22.63%, it has a very attractive valuation with a 1.97 Price to Book Value
- Over the past year, while the stock has generated a return of 14.46%, its profits have fallen by -35%
Real-Time Research ReportHow 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.
14.46%
-0.21
37.94%
Saudi Arabia All Share TASI
-0.13%
-0.01
13.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.81%
EBIT Growth (5y)
22.77%
EBIT to Interest (avg)
-0.13
Debt to EBITDA (avg)
2.01
Net Debt to Equity (avg)
0.42
Sales to Capital Employed (avg)
1.46
Tax Ratio
3.34%
Dividend Payout Ratio
30.77%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
15.22%
ROE (avg)
21.45%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.97
EV to EBIT
7.66
EV to EBITDA
5.97
EV to Capital Employed
1.81
EV to Sales
1.20
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
23.66%
ROE (Latest)
22.63%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 1,137.68
-10What is not working for the Company
NET SALES(HY)
At SAR 331.99 MM has Grown at -20.37%
ROCE(HY)
Lowest at 19.04%
INTEREST(Q)
At SAR 3.06 MM has Grown at 35.75%
RAW MATERIAL COST(Y)
Grown by 27.99% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.71 times
Here's what is working for Arabian Pipes Co.
Interest Coverage Ratio
Highest at 1,137.68
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Here's what is not working for Arabian Pipes Co.
Interest
At SAR 3.06 MM has Grown at 35.75%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Net Sales
At SAR 331.99 MM has Grown at -20.37%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (SAR MM)
Inventory Turnover Ratio
Lowest at 2.71 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 27.99% (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
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