Ash-Sharqiyah Development Co. (6060) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ash-Sharqiyah Development Co.

Why is Ash-Sharqiyah Development Co. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 193.21% and Operating profit at -238.88% over the last 5 years

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 -28.76%, its profits have fallen by -417%

Below par performance in long term as well as near term

Along with generating -28.76% 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 Other Agricultural Products)

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

Is Ash-Sharqiyah Development Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ash-Sharqiyah Development Co.

-28.32%

-1.04

30.05%

Saudi Arabia All Share TASI

-12.63%

-0.89

14.47%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

193.21%

EBIT Growth (5y)

-238.88%

EBIT to Interest (avg)

-7.98

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

0.32

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.10%

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

1.42

EV to EBIT

-17.71

EV to EBITDA

-27.88

EV to Capital Employed

1.65

EV to Sales

2.13

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.30%

ROE (Latest)

-3.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

18What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -59.95% (YoY

NET SALES(Q)

Highest at SAR 59.97 MM

OPERATING PROFIT(Q)

Highest at SAR 0.27 MM

OPERATING PROFIT MARGIN(Q)

Highest at 0.46 %

-29What is not working for the Company

INTEREST(HY)

At SAR 0.25 MM has Grown at 738.38%

OPERATING CASH FLOW(Y)

Lowest at SAR -11.67 MM

PRE-TAX PROFIT(Q)

At SAR -0.41 MM has Fallen at -130.98%

NET PROFIT(Q)

At SAR -0.23 MM has Fallen at -117.44%

ROCE(HY)

Lowest at -3.4%

DEBT-EQUITY RATIO (HY)

Highest at -34.64 %

Here's what is working for Ash-Sharqiyah Development Co.

Net Sales

At SAR 59.97 MM has Grown at 380.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (SAR MM)

Net Sales

Highest at SAR 59.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Profit

Highest at SAR 0.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 0.46 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -59.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Ash-Sharqiyah Development Co.

Interest

At SAR 0.25 MM has Grown at 738.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Pre-Tax Profit

At SAR -0.41 MM has Fallen at -130.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR -0.23 MM has Fallen at -117.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Operating Cash Flow

Lowest at SAR -11.67 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Debt-Equity Ratio

Highest at -34.64 % and Grown

In each half year 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