Northern Region Cement Co. (3004) 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

Northern Region Cement Co.

Why is Northern Region Cement Co. ?

Poor Management Efficiency with a low ROCE of 4.00%

The company has been able to generate a Return on Capital Employed (avg) of 4.00% 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 -0.58% and Operating profit at 0.31% 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 4.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.58% and Operating profit at 0.31% over the last 5 years

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at SAR 78.34 MM
NET PROFIT(HY) At SAR 21.01 MM has Grown at -66.86%
INVENTORY TURNOVER RATIO(HY) Lowest at 0%

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 Region Cement Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Northern Region Cement Co.

-18.76%

-1.11

19.84%

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)

-0.58%

EBIT Growth (5y)

0.31%

EBIT to Interest (avg)

3.88

Debt to EBITDA (avg)

4.38

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.21

Tax Ratio

28.53%

Dividend Payout Ratio

44.64%

Pledged Shares

Institutional Holding

ROCE (avg)

4.00%

ROE (avg)

4.12%

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

0.64

EV to EBIT

19.92

EV to EBITDA

13.92

EV to Capital Employed

0.75

EV to Sales

3.70

PEG Ratio

Dividend Yield

6.18%

ROCE (Latest)

3.76%

ROE (Latest)

2.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at SAR 180.77 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 78.34 MM

NET PROFIT(HY)

At SAR 21.01 MM has Grown at -66.86%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

INTEREST COVERAGE RATIO(Q)

Lowest at 221.01

RAW MATERIAL COST(Y)

Grown by 5.26% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 43.83 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

OPERATING PROFIT(Q)

Lowest at SAR 32.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.77 %

Here's what is working for Northern Region Cement Co.

Net Sales

Highest at SAR 180.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Here's what is not working for Northern Region Cement Co.

Operating Cash Flow

Lowest at SAR 78.34 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Interest Coverage Ratio

Lowest at 221.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At SAR 21.01 MM has Grown at -66.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Inventory Turnover Ratio

Lowest at 0% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at SAR 32.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 17.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 43.83 %

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

Debtors Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.26% (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