Saudi Automotive Services Co. (4050) 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

Saudi Automotive Services Co.

Why is Saudi Automotive Services Co. ?

Poor Management Efficiency with a low ROCE of 6.21%

The company has been able to generate a Return on Capital Employed (avg) of 6.21% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 38.64% and Operating profit at 5.15% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.29% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 4 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 252.9
ROCE(HY) Lowest at 4.22%
RAW MATERIAL COST(Y) Grown by 71.07% (YoY)

With ROE of 3.91%, it has a very expensive valuation with a 4.09 Price to Book Value

Over the past year, while the stock has generated a return of -15.08%, its profits have fallen by -33.8%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -0.13% in the last 1 year, its fall in the stock was much higher with a return of -15.08%

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 Retailing)

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

Is Saudi Automotive Services Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Automotive Services Co.

-15.08%

-0.33

37.16%

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)

38.64%

EBIT Growth (5y)

5.15%

EBIT to Interest (avg)

1.32

Debt to EBITDA (avg)

3.08

Net Debt to Equity (avg)

2.18

Sales to Capital Employed (avg)

3.57

Tax Ratio

7.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.21%

ROE (avg)

7.29%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

105

Industry P/E

Price to Book Value

4.09

EV to EBIT

33.60

EV to EBITDA

9.44

EV to Capital Employed

1.96

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

5.84%

ROE (Latest)

3.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 664.66 MM

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 252.9

ROCE(HY)

Lowest at 4.22%

RAW MATERIAL COST(Y)

Grown by 71.07% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 511.04 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 60.31 times

PRE-TAX PROFIT(Q)

Lowest at SAR -22.76 MM

NET PROFIT(Q)

Lowest at SAR -24.26 MM

EPS(Q)

Lowest at SAR -0.34

Here's what is working for Saudi Automotive Services Co.

Operating Cash Flow

Highest at SAR 664.66 MM and Grown

In each year 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 120.06 MM

in the last five periods

MOJO Watch

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

Depreciation (SAR MM)

Here's what is not working for Saudi Automotive Services Co.

Interest Coverage Ratio

Lowest at 252.9 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At SAR -22.76 MM has Fallen at -353.65%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR -24.26 MM has Fallen at -514.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Pre-Tax Profit

Lowest at SAR -22.76 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 -24.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR -0.34

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Highest at 511.04 %

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 60.31 times

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 71.07% (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