Saudi Cement Co. (3030) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Saudi Cement Co.

Why is Saudi Cement Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.01% and Operating profit at -5.15% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at SAR 523.26 MM
INTEREST(Q) At SAR 6.43 MM has Grown at 46.6%
INTEREST COVERAGE RATIO(Q) Lowest at 1,690.58

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.35% 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 Building Products)

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

Is Saudi Cement Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Cement Co.

-100.0%

-1.29

17.55%

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)

2.01%

EBIT Growth (5y)

-5.15%

EBIT to Interest (avg)

25.44

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.63

Tax Ratio

4.38%

Dividend Payout Ratio

99.73%

Pledged Shares

Institutional Holding

ROCE (avg)

15.39%

ROE (avg)

15.88%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

EV to EBIT

13.65

EV to EBITDA

9.98

EV to Capital Employed

EV to Sales

3.54

PEG Ratio

1.04

Dividend Yield

6.28%

ROCE (Latest)

ROE (Latest)

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.1 times

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 523.26 MM

INTEREST(Q)

At SAR 6.43 MM has Grown at 46.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,690.58

RAW MATERIAL COST(Y)

Grown by 26.27% (YoY

NET SALES(Q)

Lowest at SAR 363.93 MM

OPERATING PROFIT(Q)

Lowest at SAR 108.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 29.87 %

PRE-TAX PROFIT(Q)

Lowest at SAR 58.17 MM

NET PROFIT(Q)

Lowest at SAR 53.23 MM

EPS(Q)

Lowest at SAR 0.35

Here's what is working for Saudi Cement Co.

Debtors Turnover Ratio

Highest at 4.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Saudi Cement Co.

Operating Cash Flow

Lowest at SAR 523.26 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Interest

At SAR 6.43 MM has Grown at 46.6%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Interest Coverage Ratio

Lowest at 1,690.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at SAR 363.93 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Net Sales

At SAR 363.93 MM has Fallen at -15.41%

over average net sales of the previous four periods of SAR 430.23 MM

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Operating Profit

Lowest at SAR 108.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 29.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 58.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Pre-Tax Profit

At SAR 58.17 MM has Fallen at -47.33%

over average net sales of the previous four periods of SAR 110.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 53.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Net Profit

At SAR 53.23 MM has Fallen at -49.87%

over average net sales of the previous four periods of SAR 106.18 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 0.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Raw Material Cost

Grown by 26.27% (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