ScoreWhy is Eastern Province Cement Co. ?
1
Poor Management Efficiency with a low ROCE of 11.27%
- The company has been able to generate a Return on Capital Employed (avg) of 11.27% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 10.70% and Operating profit at 6.50% over the last 5 years
3
Flat results in Mar 26
- ROCE(HY) Lowest at 9.16%
- RAW MATERIAL COST(Y) Grown by 13.97% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at 0.17 %
4
With ROE of 11.48%, it has a very attractive valuation with a 0.87 Price to Book Value
- Over the past year, while the stock has generated a return of -19.52%, its profits have risen by 3.1% ; the PEG ratio of the company is 2.4
- At the current price, the company has a high dividend yield of 6.9
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -19.52% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Eastern Province Cement Co. should be less than 10%
- Overall Portfolio exposure to Building Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Eastern Province Cement Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eastern Province Cement Co.
-100.0%
-1.19
19.89%
Saudi Arabia All Share TASI
-0.13%
-0.01
13.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.70%
EBIT Growth (5y)
6.50%
EBIT to Interest (avg)
52.88
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
0.48
Tax Ratio
10.17%
Dividend Payout Ratio
50.97%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.27%
ROE (avg)
8.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.87
EV to EBIT
6.77
EV to EBITDA
4.90
EV to Capital Employed
0.87
EV to Sales
1.55
PEG Ratio
2.43
Dividend Yield
6.92%
ROCE (Latest)
12.82%
ROE (Latest)
11.48%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 1.96 times
NET SALES(Q)
Highest at SAR 354.31 MM
OPERATING PROFIT(Q)
Highest at SAR 110.01 MM
PRE-TAX PROFIT(Q)
Highest at SAR 81.55 MM
NET PROFIT(Q)
Highest at SAR 75.15 MM
EPS(Q)
Highest at SAR 0.84
-5What is not working for the Company
ROCE(HY)
Lowest at 9.16%
RAW MATERIAL COST(Y)
Grown by 13.97% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 0.17 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.88 times
Here's what is working for Eastern Province Cement Co.
Inventory Turnover Ratio
Highest at 1.96 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
Highest at SAR 354.31 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SAR MM)
Operating Profit
Highest at SAR 110.01 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (SAR MM)
Pre-Tax Profit
Highest at SAR 81.55 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (SAR MM)
Net Profit
Highest at SAR 75.15 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (SAR MM)
EPS
Highest at SAR 0.84
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (SAR)
Depreciation
Highest at SAR 29.4 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (SAR MM)
Here's what is not working for Eastern Province Cement Co.
Debt-Equity Ratio
Highest at 0.17 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 2.88 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 13.97% (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
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