Saudi Basic Industries Corp. (2010) 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 Basic Industries Corp.

Why is Saudi Basic Industries Corp. ?

Poor Management Efficiency with a low ROCE of 7.31%

The company has been able to generate a Return on Capital Employed (avg) of 7.31% 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 -0.18% and Operating profit at -1.95% over the last 5 years

With a growth in Net Sales of 117.34%, the company declared Very Positive results in Mar 26

PRE-TAX PROFIT(Q) At SAR 1,202.01 MM has Grown at 381.67%
NET PROFIT(Q) At SAR 816.48 MM has Grown at 339.01%
RAW MATERIAL COST(Y) Fallen by -14.66% (YoY)

With ROE of -0.97%, it has a risky valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of 1.36%, its profits have fallen by -129.2%
At the current price, the company has a high dividend yield of 5.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saudi Basic Industries Corp. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Saudi Basic Industries Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Basic Industries Corp.

-100.0%

-1.08

24.52%

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)

-0.18%

EBIT Growth (5y)

-1.95%

EBIT to Interest (avg)

7.56

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.71

Tax Ratio

16.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.31%

ROE (avg)

6.85%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.32

EV to EBIT

42.65

EV to EBITDA

9.70

EV to Capital Employed

1.33

EV to Sales

1.40

PEG Ratio

Dividend Yield

5.31%

ROCE (Latest)

3.13%

ROE (Latest)

-0.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At SAR 1,202.01 MM has Grown at 381.67%

NET PROFIT(Q)

At SAR 816.48 MM has Grown at 339.01%

RAW MATERIAL COST(Y)

Fallen by -14.66% (YoY

-9What is not working for the Company

NET SALES(HY)

At SAR 38,184.88 MM has Grown at -40.3%

DEBT-EQUITY RATIO (HY)

Highest at 2.23 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.61 times

Here's what is working for Saudi Basic Industries Corp.

Pre-Tax Profit

At SAR 1,202.01 MM has Grown at 381.67%

over average net sales of the previous four periods of SAR 249.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 816.48 MM has Grown at 339.01%

over average net sales of the previous four periods of SAR -341.61 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SAR MM)

Raw Material Cost

Fallen by -14.66% (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 Saudi Basic Industries Corp.

Net Sales

At SAR 38,184.88 MM has Grown at -40.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (SAR MM)

Debt-Equity Ratio

Highest at 2.23 %

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 5.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio