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Ready Mix Concrete & Construction Supplies

  • Market Cap: Small Cap
  • Industry: Building Products
  • ISIN: JO4106511010
JOD
1.33
-0.02 (-1.48%)

Jun 23

AMM

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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
Northern Cement Co.

Why is Ready Mix Concrete & Construction Supplies ?

1
Poor Management Efficiency with a low ROCE of 5.21%
  • The company has been able to generate a Return on Capital Employed (avg) of 5.21% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 16.77% and Operating profit at 37.14% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 7.39% signifying low profitability per unit of shareholders funds
3
Negative results in Mar 26
  • INTEREST(HY) At JOD 0.18 MM has Grown at 48.71%
  • INVENTORY TURNOVER RATIO(HY) Lowest at 11.9 times
  • NET SALES(Q) Lowest at JOD 10.22 MM
4
With ROE of 9.21%, it has a very expensive valuation with a 0.85 Price to Book Value
  • The stock is trading at a discount compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of 51.69%, its profits have risen by 1.7% ; the PEG ratio of the company is 5.5
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Ready Mix Concrete & Construction Supplies for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Ready Mix Concrete & Construction Supplies
49.44%
0.49
33.54%
Jordan General Index
46.42%
4.78
10.29%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
16.77%
EBIT Growth (5y)
37.14%
EBIT to Interest (avg)
1.86
Debt to EBITDA (avg)
4.18
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
1.36
Tax Ratio
21.73%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.21%
ROE (avg)
7.39%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.85
EV to EBIT
10.87
EV to EBITDA
7.22
EV to Capital Employed
0.86
EV to Sales
0.72
PEG Ratio
5.49
Dividend Yield
NA
ROCE (Latest)
7.95%
ROE (Latest)
9.21%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bearish
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
NET PROFIT(HY)

At JOD 1.68 MM has Grown at 71.03%

RAW MATERIAL COST(Y)

Fallen by -8% (YoY

-11What is not working for the Company
INTEREST(HY)

At JOD 0.18 MM has Grown at 48.71%

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.9 times

NET SALES(Q)

Lowest at JOD 10.22 MM

PRE-TAX PROFIT(Q)

Lowest at JOD 0.38 MM

NET PROFIT(Q)

Lowest at JOD 0.46 MM

EPS(Q)

Lowest at JOD 0.02

Here's what is working for Ready Mix Concrete & Construction Supplies

Raw Material Cost
Fallen by -8% (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

Here's what is not working for Ready Mix Concrete & Construction Supplies

Interest
At JOD 0.18 MM has Grown at 48.71%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JOD MM)

Net Sales
Lowest at JOD 10.22 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (JOD MM)

Pre-Tax Profit
Lowest at JOD 0.38 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 0.46 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (JOD MM)

EPS
Lowest at JOD 0.02
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (JOD)

Inventory Turnover Ratio
Lowest at 11.9 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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