National Metal Manufacturing & Casting Co. (2220) 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 Metal Manufacturing & Casting Co.

Why is National Metal Manufacturing & Casting Co. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 1.64% and Operating profit at 9.14% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

PRE-TAX PROFIT(Q) At SAR -5.24 MM has Fallen at -117.97%
DEBT-EQUITY RATIO (HY) Highest at 32.49 %
NET SALES(Q) At SAR 49.58 MM has Fallen at -29.31%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.77%, its profits have risen by 63%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.77% 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 Ferrous Metals)

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

Is National Metal Manufacturing & Casting Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

National Metal Manufacturing & Casting Co.

-11.77%

-0.73

36.33%

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)

1.64%

EBIT Growth (5y)

9.14%

EBIT to Interest (avg)

-9.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.76

Tax Ratio

6.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

1.72

EV to EBIT

-37.64

EV to EBITDA

340.20

EV to Capital Employed

1.59

EV to Sales

1.88

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.23%

ROE (Latest)

-5.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-20What is not working for the Company

PRE-TAX PROFIT(Q)

At SAR -5.24 MM has Fallen at -117.97%

DEBT-EQUITY RATIO (HY)

Highest at 32.49 %

NET SALES(Q)

At SAR 49.58 MM has Fallen at -29.31%

NET PROFIT(Q)

At SAR -5.69 MM has Fallen at -83.31%

RAW MATERIAL COST(Y)

Grown by 27.16% (YoY

CASH AND EQV(HY)

Lowest at SAR 39.75 MM

Here's what is not working for National Metal Manufacturing & Casting Co.

Pre-Tax Profit

At SAR -5.24 MM has Fallen at -117.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Sales

At SAR 49.58 MM has Fallen at -29.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (SAR MM)

Net Profit

At SAR -5.69 MM has Fallen at -83.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Debt-Equity Ratio

Highest at 32.49 % and Grown

In each half year 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

Cash and Eqv

Lowest at SAR 39.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 27.16% (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