Qassim Cement Co. (3040) 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

Qassim Cement Co.

Why is Qassim Cement Co. ?

Poor Management Efficiency with a low ROCE of 21.02%

The company has been able to generate a Return on Capital Employed (avg) of 21.02% 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 3.72% and Operating profit at -15.43% over the last 5 years

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

INTEREST(HY) At SAR 2.37 MM has Grown at 392.68%
DEBT-EQUITY RATIO (HY) Highest at -20.13 %
RAW MATERIAL COST(Y) Grown by 36.32% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.67% 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 Building Products)

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

Is Qassim Cement Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qassim Cement Co.

-23.67%

-1.68

17.38%

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)

3.72%

EBIT Growth (5y)

-15.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.37

Tax Ratio

8.83%

Dividend Payout Ratio

119.03%

Pledged Shares

Institutional Holding

ROCE (avg)

21.02%

ROE (avg)

12.63%

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

1.73

EV to EBIT

16.42

EV to EBITDA

11.01

EV to Capital Employed

1.92

EV to Sales

3.58

PEG Ratio

0.57

Dividend Yield

5.22%

ROCE (Latest)

11.68%

ROE (Latest)

10.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 349.57 MM

NET SALES(HY)

At SAR 596.15 MM has Grown at 49.14%

-14What is not working for the Company

INTEREST(HY)

At SAR 2.37 MM has Grown at 392.68%

DEBT-EQUITY RATIO (HY)

Highest at -20.13 %

RAW MATERIAL COST(Y)

Grown by 36.32% (YoY

PRE-TAX PROFIT(Q)

Lowest at SAR 75.27 MM

NET PROFIT(Q)

Lowest at SAR 65.1 MM

EPS(Q)

Lowest at SAR 0.56

Here's what is working for Qassim Cement Co.

Net Sales

At SAR 596.15 MM has Grown at 49.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Cash Flow

Highest at SAR 349.57 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Depreciation

Highest at SAR 39.9 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SAR MM)

Depreciation

At SAR 39.9 MM has Grown at 40.04%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (SAR MM)

Here's what is not working for Qassim Cement Co.

Interest

At SAR 2.37 MM has Grown at 392.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Debt-Equity Ratio

Highest at -20.13 % 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

Pre-Tax Profit

Lowest at SAR 75.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 65.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.56

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Raw Material Cost

Grown by 36.32% (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

Non Operating Income

Highest at SAR 0.3 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income