Northern Cement Co. (NCCO) 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

Al Quds Ready Mix

Ready Mix Concrete & Construction Supplies

Assas for Concrete Products Co. Ltd.

Northern Cement Co.

Why is Northern Cement Co. ?

Poor Management Efficiency with a low ROCE of 7.81%

The company has been able to generate a Return on Capital Employed (avg) of 7.81% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 5.92% and Operating profit at -23.18% over the last 5 years

With a fall in Net Sales of -23.71%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
ROCE(HY) Lowest at 3.03%
NET SALES(Q) At JOD 10.53 MM has Fallen at -19.08%
RAW MATERIAL COST(Y) Grown by 38.99% (YoY)

With ROE of 3.07%, it has a very expensive valuation with a 1.35 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.78%, its profits have fallen by -22.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.78% returns in the last 1 year, the stock has also underperformed Jordan General Index 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 Building Products)

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

Is Northern Cement Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Northern Cement Co.

-27.78%

-0.48

44.46%

Jordan General Index

46.42%

4.78

10.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.92%

EBIT Growth (5y)

-23.18%

EBIT to Interest (avg)

5.65

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.74

Tax Ratio

26.21%

Dividend Payout Ratio

73.55%

Pledged Shares

Institutional Holding

ROCE (avg)

7.81%

ROE (avg)

7.03%

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

1.35

EV to EBIT

40.04

EV to EBITDA

24.73

EV to Capital Employed

1.36

EV to Sales

1.72

PEG Ratio

Dividend Yield

1.88%

ROCE (Latest)

3.40%

ROE (Latest)

3.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JOD 15.9 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.67 times

-21What is not working for the Company

ROCE(HY)

Lowest at 3.03%

NET SALES(Q)

At JOD 10.53 MM has Fallen at -19.08%

RAW MATERIAL COST(Y)

Grown by 38.99% (YoY

OPERATING PROFIT(Q)

Lowest at JOD 0.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.1 %

PRE-TAX PROFIT(Q)

Lowest at JOD 0.12 MM

NET PROFIT(Q)

Lowest at JOD 0.14 MM

EPS(Q)

Lowest at JOD 0

Here's what is working for Northern Cement Co.

Operating Cash Flow

Highest at JOD 15.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JOD MM)

Debtors Turnover Ratio

Highest at 4.67 times

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 Northern Cement Co.

Pre-Tax Profit

At JOD 0.12 MM has Fallen at -81.34%

over average net sales of the previous four periods of JOD 0.66 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JOD MM)

Net Profit

At JOD 0.14 MM has Fallen at -75.61%

over average net sales of the previous four periods of JOD 0.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JOD MM)

Net Sales

At JOD 10.53 MM has Fallen at -19.08%

over average net sales of the previous four periods of JOD 13.02 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JOD MM)

Operating Profit

Lowest at JOD 0.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JOD MM)

Operating Profit Margin

Lowest at 4.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JOD 0.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JOD MM)

Net Profit

Lowest at JOD 0.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JOD MM)

EPS

Lowest at JOD 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JOD)

Raw Material Cost

Grown by 38.99% (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