Development Works Food Co. (9501) 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

Development Works Food Co.

Why is Development Works Food 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

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.13% and Operating profit at 7.21% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.92% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.13% and Operating profit at 7.21% over the last 5 years

The company has declared negative results in Dec'2024 after 3 consecutive positive quarters

INTEREST(HY) At SAR 1.43 MM has Grown at 108.6%
PRE-TAX PROFIT(Q) At SAR -0.94 MM has Fallen at -8,932.05%
NET PROFIT(Q) At SAR -0.74 MM has Fallen at -4,161.32%

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 -31.47%, its profits have fallen by -50%

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 Leisure Services)

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

Is Development Works Food Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Development Works Food Co.

-30.75%

-0.77

33.70%

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)

-1.13%

EBIT Growth (5y)

7.21%

EBIT to Interest (avg)

-2.34

Debt to EBITDA (avg)

1.54

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

2.19

Tax Ratio

21.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.92%

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

17.54

EV to EBIT

-376.70

EV to EBITDA

26.26

EV to Capital Employed

11.42

EV to Sales

4.38

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.03%

ROE (Latest)

-0.64%

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

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

5What is working for the Company

NET PROFIT(HY)

Higher at SAR 0.35 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 17.26 times

DEBTORS TURNOVER RATIO(HY)

Highest at 15.5 times

-17What is not working for the Company

INTEREST(HY)

At SAR 1.43 MM has Grown at 108.6%

PRE-TAX PROFIT(Q)

At SAR -0.94 MM has Fallen at -8,932.05%

NET PROFIT(Q)

At SAR -0.74 MM has Fallen at -4,161.32%

OPERATING CASH FLOW(Y)

Lowest at SAR 13.69 MM

RAW MATERIAL COST(Y)

Grown by 55.28% (YoY

Here's what is working for Development Works Food Co.

Inventory Turnover Ratio

Highest at 17.26 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 15.5 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at SAR 4.9 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SAR MM)

Here's what is not working for Development Works Food Co.

Pre-Tax Profit

At SAR -0.94 MM has Fallen at -8,932.05%

over average net sales of the previous four periods of SAR 0.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR -0.74 MM has Fallen at -4,161.32%

over average net sales of the previous four periods of SAR -0.02 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Interest

At SAR 1.43 MM has Grown at 108.6%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Operating Cash Flow

Lowest at SAR 13.69 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Raw Material Cost

Grown by 55.28% (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