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

Below par performance in long term as well as near term

Along with generating -35.53% 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 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.

-35.33%

-1.32

23.34%

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)

-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)

0.25

Tax Ratio

8.10%

Dividend Payout Ratio

48.57%

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

1.20

EV to EBIT

10.85

EV to EBITDA

6.67

EV to Capital Employed

1.29

EV to Sales

2.86

PEG Ratio

0.22

Dividend Yield

4.03%

ROCE (Latest)

11.93%

ROE (Latest)

8.26%

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

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 237.83 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.17 times

DEBTORS TURNOVER RATIO(HY)

Highest at 13 times

-15What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 56.25% (YoY

NET SALES(Q)

Lowest at SAR 96.49 MM

OPERATING PROFIT(Q)

Lowest at SAR 27.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 28.64 %

PRE-TAX PROFIT(Q)

Lowest at SAR 9.02 MM

NET PROFIT(Q)

Lowest at SAR 6.73 MM

EPS(Q)

Lowest at SAR 0.06

Here's what is working for City Cement Co.

Operating Cash Flow

Highest at SAR 237.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Inventory Turnover Ratio

Highest at 2.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for City Cement Co.

Net Sales

At SAR 96.49 MM has Fallen at -33.28%

over average net sales of the previous four periods of SAR 144.62 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (SAR MM)

Pre-Tax Profit

At SAR 9.02 MM has Fallen at -78.98%

over average net sales of the previous four periods of SAR 42.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 6.73 MM has Fallen at -82.68%

over average net sales of the previous four periods of SAR 38.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Net Sales

Lowest at SAR 96.49 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Operating Profit

Lowest at SAR 27.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 28.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 9.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 6.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Raw Material Cost

Grown by 56.25% (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

Non Operating Income

Highest at SAR 0.47 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income