National Industrialization Co. (2060) 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

National Industrialization Co.

Why is National Industrialization Co. ?

Poor Management Efficiency with a low ROCE of 1.16%

The company has been able to generate a Return on Capital Employed (avg) of 1.16% 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 8.48% and Operating profit at 7.51% 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 9.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.48% and Operating profit at 7.51% over the last 5 years

NET PROFIT(HY) At SAR -1,154.1 MM has Grown at -5,518.54%
OPERATING CASH FLOW(Y) Lowest at SAR 466.6 MM
INTEREST(HY) At SAR 192.03 MM has Grown at 71.4%

With ROE of -0.53%, it has a expensive valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of -7.83%, its profits have fallen by -160.1%

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 Diversified)

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

Is National Industrialization Co. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

National Industrialization Co.

-8.37%

-0.77

23.04%

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)

8.48%

EBIT Growth (5y)

7.51%

EBIT to Interest (avg)

0.33

Debt to EBITDA (avg)

39.63

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.23

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.16%

ROE (avg)

9.01%

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

0.73

EV to EBIT

-43.08

EV to EBITDA

98.09

EV to Capital Employed

0.79

EV to Sales

2.81

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.84%

ROE (Latest)

-0.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

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

ROCE(HY)

Highest at 9.51%

RAW MATERIAL COST(Y)

Fallen by -67.34% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.83%

OPERATING PROFIT(Q)

Highest at SAR 68.7 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.49 %

-18What is not working for the Company

NET PROFIT(HY)

At SAR -1,154.1 MM has Grown at -5,518.54%

OPERATING CASH FLOW(Y)

Lowest at SAR 466.6 MM

INTEREST(HY)

At SAR 192.03 MM has Grown at 71.4%

NET SALES(Q)

Lowest at SAR 808.91 MM

EPS(Q)

Lowest at SAR -0.1

Here's what is working for National Industrialization Co.

Operating Profit

Highest at SAR 68.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 8.49 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debtors Turnover Ratio

Highest at 2.83%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -67.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at SAR 109.95 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 Industrialization Co.

Net Profit

At SAR -1,154.1 MM has Grown at -5,518.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Net Sales

At SAR 808.91 MM has Fallen at -19.15%

over average net sales of the previous four periods of SAR 1,000.48 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (SAR MM)

Interest

At SAR 192.03 MM has Grown at 71.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Operating Cash Flow

Lowest at SAR 466.6 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Net Sales

Lowest at SAR 808.91 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

EPS

Lowest at SAR -0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)