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
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at SAR 382.7 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 1.59 times
4
With ROE of 12.11%, it has a very attractive valuation with a 1.01 Price to Book Value
- Over the past year, while the stock has generated a return of -30.56%, its profits have risen by 18.9% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 5.9
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -30.56% 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%
-1.36
19.55%
Saudi Arabia All Share TASI
-11.13%
-0.71
15.65%
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)
0.47
Tax Ratio
10.17%
Dividend Payout Ratio
55.51%
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
1.01
EV to EBIT
6.91
EV to EBITDA
5.11
EV to Capital Employed
1.01
EV to Sales
1.73
PEG Ratio
0.44
Dividend Yield
5.91%
ROCE (Latest)
14.66%
ROE (Latest)
12.11%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SAR 382.7 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 1.59 times
-11What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 4,567.51
RAW MATERIAL COST(Y)
Grown by 30.33% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -2.07 %
OPERATING PROFIT(Q)
Lowest at SAR 65.09 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 21.79 %
PRE-TAX PROFIT(Q)
Lowest at SAR 42.86 MM
NET PROFIT(Q)
Lowest at SAR 36.65 MM
EPS(Q)
Lowest at SAR 0.41
Here's what is working for Eastern Province Cement Co.
Operating Cash Flow
Highest at SAR 382.7 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SAR MM)
Inventory Turnover Ratio
Highest at 1.59 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
Here's what is not working for Eastern Province Cement Co.
Interest Coverage Ratio
Lowest at 4,567.51
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at SAR 65.09 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (SAR MM)
Operating Profit Margin
Lowest at 21.79 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SAR 42.86 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SAR MM)
Pre-Tax Profit
At SAR 42.86 MM has Fallen at -45.53%
over average net sales of the previous four periods of SAR 78.69 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SAR MM)
Net Profit
Lowest at SAR 36.65 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SAR MM)
Net Profit
At SAR 36.65 MM has Fallen at -47.39%
over average net sales of the previous four periods of SAR 69.66 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (SAR MM)
EPS
Lowest at SAR 0.41
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SAR)
Debt-Equity Ratio
Highest at -2.07 %
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
Raw Material Cost
Grown by 30.33% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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