Dar Al Arkan Real Estate Development Co. (4300) 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

Dar Al Arkan Real Estate Development Co.

Why is Dar Al Arkan Real Estate Development Co. ?

With ROE of 4.26%, it has a attractive valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of 14.44%, its profits have risen by 37.8% ; the PEG ratio of the company is 0.6

Market Beating performance in long term as well as near term

Along with generating 14.44% returns in the last 1 year, the stock has outperformed 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 buy?

Overall Portfolio exposure to Dar Al Arkan Real Estate Development Co. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Dar Al Arkan Real Estate Development Co. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dar Al Arkan Real Estate Development Co.

-100.0%

1.81

36.80%

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)

10.75%

EBIT Growth (5y)

24.56%

EBIT to Interest (avg)

1.52

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

2.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.57%

ROE (avg)

2.14%

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

0.92

EV to EBIT

9.88

EV to EBITDA

9.52

EV to Capital Employed

0.89

EV to Sales

3.73

PEG Ratio

0.57

Dividend Yield

ROCE (Latest)

9.05%

ROE (Latest)

4.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

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

7What is working for the Company

ROCE(HY)

Highest at 4.88%

RAW MATERIAL COST(Y)

Fallen by -33.05% (YoY

CASH AND EQV(HY)

Highest at SAR 14,567.77 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.06 times

NET SALES(Q)

Highest at SAR 1,017.25 MM

PRE-TAX PROFIT(Q)

Highest at SAR 374.37 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR -1,514.57 MM

DEBT-EQUITY RATIO (HY)

Highest at 35.43 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.02 times

INTEREST(Q)

Highest at SAR 320.36 MM

Here's what is working for Dar Al Arkan Real Estate Development Co.

Net Sales

Highest at SAR 1,017.25 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Pre-Tax Profit

Highest at SAR 374.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Cash and Eqv

Highest at SAR 14,567.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 1.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -33.05% (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 Dar Al Arkan Real Estate Development Co.

Operating Cash Flow

Lowest at SAR -1,514.57 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)

Interest

At SAR 320.36 MM has Grown at 55.54%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Interest

Highest at SAR 320.36 MM

in the last five periods and Increased by 55.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Debt-Equity Ratio

Highest at 35.43 %

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

Inventory Turnover Ratio

Lowest at 3.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at SAR 0.41 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income