National Agricultural Development Co. (6010) 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

National Agricultural Development Co.

Why is National Agricultural Development Co. ?

Poor Management Efficiency with a low ROCE of 7.92%

The company has been able to generate a Return on Capital Employed (avg) of 7.92% 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 8.87% and Operating profit at 30.26% 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 9.20% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 12 consecutive quarters

INTEREST COVERAGE RATIO(Q) Highest at 2,485.89
CASH AND EQV(HY) Highest at SAR 3,546.04 MM

With ROE of 17.66%, it has a fair valuation with a 1.50 Price to Book Value

Over the past year, while the stock has generated a return of -35.59%, its profits have risen by 84.8% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -35.59% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to National Agricultural Development Co. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is National Agricultural Development Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

National Agricultural Development Co.

-100.0%

-1.81

22.57%

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)

8.87%

EBIT Growth (5y)

30.26%

EBIT to Interest (avg)

4.29

Debt to EBITDA (avg)

3.02

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.81

Tax Ratio

5.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.92%

ROE (avg)

9.20%

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

1.50

EV to EBIT

11.94

EV to EBITDA

7.34

EV to Capital Employed

1.76

EV to Sales

1.51

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

14.78%

ROE (Latest)

17.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,485.89

CASH AND EQV(HY)

Highest at SAR 3,546.04 MM

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 13.89% (YoY

PRE-TAX PROFIT(Q)

At SAR 123.85 MM has Fallen at -40.22%

NET PROFIT(Q)

At SAR 110.67 MM has Fallen at -43.75%

Here's what is working for National Agricultural Development Co.

Interest Coverage Ratio

Highest at 2,485.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv

Highest at SAR 3,546.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at SAR 78.07 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 National Agricultural Development Co.

Pre-Tax Profit

At SAR 123.85 MM has Fallen at -40.22%

over average net sales of the previous four periods of SAR 207.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 110.67 MM has Fallen at -43.75%

over average net sales of the previous four periods of SAR 196.76 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Raw Material Cost

Grown by 13.89% (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