Knowledge Economic City (4310) 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

Knowledge Economic City

Why is Knowledge Economic City ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0%

Poor long term growth as Net Sales has grown by an annual rate of 23.06% and Operating profit at 30.84%
The company has been able to generate a Return on Equity (avg) of 0% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 23.06% and Operating profit at 30.84%

PRE-TAX PROFIT(Q) At SAR -7.76 MM has Fallen at -366.63%
NET PROFIT(Q) At SAR -8.16 MM has Fallen at -77,581.08%
DEBT-EQUITY RATIO (HY) Highest at 69.54 %

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 -12.73%, its profits have risen by 99.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.73% 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 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 Realty)

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

Is Knowledge Economic City for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Knowledge Economic City

-100.0%

-0.85

24.74%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.06%

EBIT Growth (5y)

30.84%

EBIT to Interest (avg)

-26.05

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

40.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

1.30

EV to EBIT

389.84

EV to EBITDA

292.67

EV to Capital Employed

1.31

EV to Sales

10.35

PEG Ratio

Dividend Yield

ROCE (Latest)

0.34%

ROE (Latest)

-0.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

10What is working for the Company

NET SALES(HY)

At SAR 214.13 MM has Grown at 38.84%

NET PROFIT(HY)

Higher at SAR 20.08 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.22 times

-13What is not working for the Company

PRE-TAX PROFIT(Q)

At SAR -7.76 MM has Fallen at -366.63%

NET PROFIT(Q)

At SAR -8.16 MM has Fallen at -77,581.08%

DEBT-EQUITY RATIO (HY)

Highest at 69.54 %

RAW MATERIAL COST(Y)

Grown by 45.47% (YoY

Here's what is working for Knowledge Economic City

Net Sales

At SAR 214.13 MM has Grown at 38.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Inventory Turnover Ratio

Highest at 2.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at SAR 2.42 MM

in the last five periods

MOJO Watch

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

Depreciation (SAR MM)

Depreciation

At SAR 2.42 MM has Grown at 262.28%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (SAR MM)

Here's what is not working for Knowledge Economic City

Pre-Tax Profit

At SAR -7.76 MM has Fallen at -366.63%

over average net sales of the previous four periods of SAR 2.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR -8.16 MM has Fallen at -77,581.08%

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

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Debt-Equity Ratio

Highest at 69.54 % and Grown

In each half year 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

Raw Material Cost

Grown by 45.47% (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