Nama Chemicals (2210) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nama Chemicals

Why is Nama Chemicals ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -12.06% and Operating profit at -262.20% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared negative results for the last 10 consecutive quarters

RAW MATERIAL COST(Y) Grown by 921.58% (YoY)
CASH AND EQV(HY) Lowest at SAR 2.14 MM
NET SALES(Q) Lowest at SAR 27.79 MM

With ROE of -62.71%, it has a expensive valuation with a 1.85 Price to Book Value

Over the past year, while the stock has generated a return of -24.21%, its profits have fallen by -30.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.21% 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 Specialty Chemicals)

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

Is Nama Chemicals for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nama Chemicals

-24.63%

-1.01

26.04%

Saudi Arabia All Share TASI

-12.63%

-0.89

14.47%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.06%

EBIT Growth (5y)

-262.20%

EBIT to Interest (avg)

-1.58

Debt to EBITDA (avg)

10.56

Net Debt to Equity (avg)

2.87

Sales to Capital Employed (avg)

0.49

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.82%

ROE (avg)

2.77%

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

1.85

EV to EBIT

-6.68

EV to EBITDA

-11.31

EV to Capital Employed

1.31

EV to Sales

4.24

PEG Ratio

Dividend Yield

ROCE (Latest)

-19.66%

ROE (Latest)

-62.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

NET PROFIT(HY)

Higher at SAR -109.29 MM

ROCE(HY)

Highest at 30.95%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.9%

EPS(Q)

Highest at SAR 6.29

-28What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 921.58% (YoY

CASH AND EQV(HY)

Lowest at SAR 2.14 MM

NET SALES(Q)

Lowest at SAR 27.79 MM

OPERATING PROFIT(Q)

Lowest at SAR -34.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -125.04 %

PRE-TAX PROFIT(Q)

Lowest at SAR -61.31 MM

NET PROFIT(Q)

Lowest at SAR -59.76 MM

Here's what is working for Nama Chemicals

EPS

Highest at SAR 6.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Debtors Turnover Ratio

Highest at 4.9%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Nama Chemicals

Net Sales

At SAR 27.79 MM has Fallen at -68.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (SAR MM)

Pre-Tax Profit

At SAR -61.31 MM has Fallen at -121.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR -59.76 MM has Fallen at -117.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Net Sales

Lowest at SAR 27.79 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Operating Profit

Lowest at SAR -34.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at -125.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR -61.31 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 -59.76 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Cash and Eqv

Lowest at SAR 2.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 921.58% (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