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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.90% and Operating profit at 41.48% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.20% signifying low profitability per unit of shareholders funds

Negative results in Mar 26

NET PROFIT(HY) At SAR 157.7 MM has Grown at -71.4%
OPERATING CASH FLOW(Y) Lowest at SAR 531.38 MM
ROCE(HY) Lowest at 8.42%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.27% 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 FMCG)

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

Is National Agricultural Development Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

National Agricultural Development Co.

-18.27%

-1.74

24.85%

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)

8.90%

EBIT Growth (5y)

41.48%

EBIT to Interest (avg)

4.29

Debt to EBITDA (avg)

3.02

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.74

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

1.10

EV to EBIT

10.18

EV to EBITDA

5.54

EV to Capital Employed

1.15

EV to Sales

1.05

PEG Ratio

Dividend Yield

ROCE (Latest)

11.27%

ROE (Latest)

8.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

1What is working for the Company

OPERATING PROFIT(Q)

Highest at SAR 191.13 MM

-13What is not working for the Company

NET PROFIT(HY)

At SAR 157.7 MM has Grown at -71.4%

OPERATING CASH FLOW(Y)

Lowest at SAR 531.38 MM

ROCE(HY)

Lowest at 8.42%

INTEREST(Q)

At SAR 9.45 MM has Grown at 35.65%

RAW MATERIAL COST(Y)

Grown by 8.19% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -21.66 %

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

Operating Profit

Highest at SAR 191.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Depreciation

Highest at SAR 81.39 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.

Net Profit

At SAR 157.7 MM has Grown at -71.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Interest

At SAR 9.45 MM has Grown at 35.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Operating Cash Flow

Lowest at SAR 531.38 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Debt-Equity Ratio

Highest at -21.66 %

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 8.19% (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