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 3.44% and Operating profit at 33.64% over the last 5 years

Flat results in Sep 25

NET PROFIT(HY) At SAR -3,603.77 MM has Grown at -208.68%
ROCE(HY) Lowest at -4.25%
RAW MATERIAL COST(Y) Grown by 6.67% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -14.69%, its profits have fallen by -197.1%
At the current price, the company has a high dividend yield of 5.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.69% 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 Chemicals & Petrochemicals)

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

Is Saudi Basic Industries Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Basic Industries Corp.

-100.0%

-1.25

21.02%

Saudi Arabia All Share TASI

-11.13%

-0.71

15.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.44%

EBIT Growth (5y)

33.64%

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)

0.73

Tax Ratio

16.43%

Dividend Payout Ratio

663.03%

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

1.21

EV to EBIT

136.50

EV to EBITDA

13.07

EV to Capital Employed

1.21

EV to Sales

1.29

PEG Ratio

Dividend Yield

5.17%

ROCE (Latest)

0.89%

ROE (Latest)

-2.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

7What is working for the Company

PRE-TAX PROFIT(Q)

At SAR 1,549.61 MM has Grown at 375.36%

INTEREST COVERAGE RATIO(Q)

Highest at 780.45

INVENTORY TURNOVER RATIO(HY)

Highest at 6.48 times

NET PROFIT(Q)

At SAR 462.34 MM has Grown at 130.59%

-12What is not working for the Company

NET PROFIT(HY)

At SAR -3,603.77 MM has Grown at -208.68%

ROCE(HY)

Lowest at -4.25%

RAW MATERIAL COST(Y)

Grown by 6.67% (YoY

NET SALES(Q)

Lowest at SAR 34,332.51 MM

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

Pre-Tax Profit

At SAR 1,549.61 MM has Grown at 375.36%

over average net sales of the previous four periods of SAR -562.76 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SAR MM)

Interest Coverage Ratio

Highest at 780.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At SAR 462.34 MM has Grown at 130.59%

over average net sales of the previous four periods of SAR -1,511.43 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

Inventory Turnover Ratio

Highest at 6.48 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Saudi Basic Industries Corp.

Net Sales

Lowest at SAR 34,332.51 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Raw Material Cost

Grown by 6.67% (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