ScoreWhy is Saudi Basic Industries Corp. ?
1
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)
2
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
3
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at SAR 17,910.64 MM
- ROCE(HY) Lowest at -3.8%
- INTEREST COVERAGE RATIO(Q) Lowest at 235.23
4
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 -21.74%, its profits have fallen by -197.1%
- At the current price, the company has a high dividend yield of 5.2
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -21.74% 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 ReportHow 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.
-21.74%
-1.64
18.61%
Saudi Arabia All Share TASI
-12.63%
-0.87
14.46%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Institutional Holding
0
ROCE (avg)
7.31%
ROE (avg)
6.85%
ValuationValuation 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
NA
Dividend Yield
5.17%
ROCE (Latest)
0.89%
ROE (Latest)
-2.83%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 6.59%
-32What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SAR 17,910.64 MM
ROCE(HY)
Lowest at -3.8%
INTEREST COVERAGE RATIO(Q)
Lowest at 235.23
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 40.33% (YoY
DIVIDEND PER SHARE(HY)
Lowest at SAR 6.4
INTEREST(Q)
Highest at SAR 1,197.3 MM
OPERATING PROFIT(Q)
Lowest at SAR 2,816.42 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 7.92 %
PRE-TAX PROFIT(Q)
Lowest at SAR -2,798.18 MM
NET PROFIT(Q)
Lowest at SAR -4,066.11 MM
EPS(Q)
Lowest at SAR -1.36
Here's what is working for Saudi Basic Industries Corp.
Inventory Turnover Ratio
Highest at 6.59%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Saudi Basic Industries Corp.
Pre-Tax Profit
At SAR -2,798.18 MM has Fallen at -592.35%
over average net sales of the previous four periods of SAR 568.34 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (SAR MM)
Net Profit
At SAR -4,066.11 MM has Fallen at -6,547.79%
over average net sales of the previous four periods of SAR 63.06 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (SAR MM)
Operating Cash Flow
Lowest at SAR 17,910.64 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SAR MM)
Interest
At SAR 1,197.3 MM has Grown at 61.41%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Interest Coverage Ratio
Lowest at 235.23
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at SAR 1,197.3 MM
in the last five periods and Increased by 61.41% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Operating Profit
Lowest at SAR 2,816.42 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (SAR MM)
Operating Profit Margin
Lowest at 7.92 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SAR -2,798.18 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SAR MM)
Net Profit
Lowest at SAR -4,066.11 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SAR MM)
EPS
Lowest at SAR -1.36
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SAR)
Dividend per share
Lowest at SAR 6.4
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (SAR)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 40.33% (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
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