City Cement Co. (3003) 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

City Cement Co.

Why is City Cement Co. ?

Poor Management Efficiency with a low ROCE of 9.91%

The company has been able to generate a Return on Capital Employed (avg) of 9.91% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.17% and Operating profit at -10.77% over the last 5 years

Flat results in Mar 26

NET PROFIT(9M) At SAR 59.83 MM has Grown at -50.99%
NET SALES(HY) At SAR 254.3 MM has Grown at -17.67%
RAW MATERIAL COST(Y) Grown by 23.59% (YoY)

With ROE of 7.25%, it has a very attractive valuation with a 0.91 Price to Book Value

Over the past year, while the stock has generated a return of -33.09%, its profits have risen by 7.3% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 5.5

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -0.13% in the last 1 year, its fall in the stock was much higher with a return of -33.09%

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 Building Products)

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

Is City Cement Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

City Cement Co.

-33.09%

-1.55

22.49%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.17%

EBIT Growth (5y)

-10.77%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.27

Tax Ratio

8.10%

Dividend Payout Ratio

124.88%

Pledged Shares

Institutional Holding

ROCE (avg)

9.91%

ROE (avg)

7.52%

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

0.91

EV to EBIT

9.14

EV to EBITDA

5.16

EV to Capital Employed

0.88

EV to Sales

2.09

PEG Ratio

1.72

Dividend Yield

5.53%

ROCE (Latest)

9.64%

ROE (Latest)

7.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.36 times

CASH AND EQV(HY)

Highest at SAR 1,113.7 MM

DEBT-EQUITY RATIO (HY)

Lowest at -31.13 %

-7What is not working for the Company

NET PROFIT(9M)

At SAR 59.83 MM has Grown at -50.99%

NET SALES(HY)

At SAR 254.3 MM has Grown at -17.67%

RAW MATERIAL COST(Y)

Grown by 23.59% (YoY

Here's what is working for City Cement Co.

Inventory Turnover Ratio

Highest at 2.36 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at SAR 1,113.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -31.13 %

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 City Cement Co.

Net Sales

At SAR 254.3 MM has Grown at -17.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Net Profit

At SAR 59.83 MM has Grown at -50.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Raw Material Cost

Grown by 23.59% (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