Middle East Specialized Cables Co. (2370) 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

Middle East Specialized Cables Co.

Why is Middle East Specialized Cables Co. ?

Poor Management Efficiency with a low ROCE of 12.09%

The company has been able to generate a Return on Capital Employed (avg) of 12.09% signifying low profitability per unit of total capital (equity and debt)

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 22.76% and Operating profit at 64.22% 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 6.71% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at SAR -37.82 MM
INTEREST COVERAGE RATIO(Q) Lowest at 607.88
DEBT-EQUITY RATIO (HY) Highest at 22.49 %

With ROE of 18.52%, it has a very attractive valuation with a 2.41 Price to Book Value

Over the past year, while the stock has generated a return of -46.93%, its profits have risen by 28.6% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 1.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Middle East Specialized Cables Co. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

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

Is Middle East Specialized Cables Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Middle East Specialized Cables Co.

-44.45%

-0.92

37.13%

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)

22.76%

EBIT Growth (5y)

64.22%

EBIT to Interest (avg)

5.56

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

2.10

Tax Ratio

14.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.09%

ROE (avg)

6.71%

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

2.41

EV to EBIT

12.02

EV to EBITDA

10.20

EV to Capital Employed

2.01

EV to Sales

1.06

PEG Ratio

0.46

Dividend Yield

1.66%

ROCE (Latest)

16.73%

ROE (Latest)

18.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

4What is working for the Company

NET SALES(HY)

At SAR 761.44 MM has Grown at 41.25%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.65 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.75 times

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR -37.82 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 607.88

DEBT-EQUITY RATIO (HY)

Highest at 22.49 %

INTEREST(Q)

Highest at SAR 5.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.11 %

Here's what is working for Middle East Specialized Cables Co.

Net Sales

At SAR 761.44 MM has Grown at 41.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Inventory Turnover Ratio

Highest at 4.65 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 2.75 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 5.5 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 Middle East Specialized Cables Co.

Operating Cash Flow

Lowest at SAR -37.82 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Interest

At SAR 5.7 MM has Grown at 31.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Interest Coverage Ratio

Lowest at 607.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at SAR 5.7 MM

in the last five periods and Increased by 31.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Operating Profit Margin

Lowest at 9.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 22.49 %

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