Leejam Sports Co. JSC (1830) 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

Leejam Sports Co. JSC

Why is Leejam Sports Co. JSC ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 19.64% and Operating profit at 56.72% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 26.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.64% and Operating profit at 56.72% over the last 5 years

Negative results in Mar 26

ROCE(HY) Lowest at 23.68%
INTEREST COVERAGE RATIO(Q) Lowest at 578.42
RAW MATERIAL COST(Y) Grown by 10.13% (YoY)

With ROE of 25.39%, it has a very attractive valuation with a 3.51 Price to Book Value

Over the past year, while the stock has generated a return of -36.52%, its profits have fallen by -31.1%
At the current price, the company has a high dividend yield of 1.4

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -0.13% in the last 1 year, its fall in the stock was much higher with a return of -36.52%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Leejam Sports Co. JSC should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is Leejam Sports Co. JSC for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Leejam Sports Co. JSC

-36.52%

-1.80

33.54%

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)

19.64%

EBIT Growth (5y)

56.72%

EBIT to Interest (avg)

4.38

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.86

Tax Ratio

2.14%

Dividend Payout Ratio

59.30%

Pledged Shares

Institutional Holding

ROCE (avg)

399.70%

ROE (avg)

26.35%

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

3.51

EV to EBIT

11.13

EV to EBITDA

6.19

EV to Capital Employed

2.78

EV to Sales

2.92

PEG Ratio

Dividend Yield

1.38%

ROCE (Latest)

24.94%

ROE (Latest)

25.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 60.53%

DEBTORS TURNOVER RATIO(HY)

Highest at 67.96 times

-11What is not working for the Company

ROCE(HY)

Lowest at 23.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 578.42

RAW MATERIAL COST(Y)

Grown by 10.13% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 163.41 %

OPERATING PROFIT(Q)

Lowest at SAR 165.28 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 44.75 %

PRE-TAX PROFIT(Q)

Lowest at SAR 49.97 MM

NET PROFIT(Q)

Lowest at SAR 49.16 MM

EPS(Q)

Lowest at SAR 0.96

Here's what is working for Leejam Sports Co. JSC

Debtors Turnover Ratio

Highest at 67.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 60.53%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at SAR 87.91 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 Leejam Sports Co. JSC

Interest Coverage Ratio

Lowest at 578.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at SAR 165.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 44.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 49.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 49.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.96

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Highest at 163.41 %

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 10.13% (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