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

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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 -4.72% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at SAR 454.71 MM
ROCE(HY) Lowest at 0%
DIVIDEND PAYOUT RATIO(Y) Lowest at 160.21%

With ROE of 0.00%, it has a very attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of -19.72%, its profits have risen by 13.8% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 6.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.72% 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 hold?

Overall Portfolio exposure to Saudi Cement Co. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Saudi Cement Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Cement Co.

-19.25%

-1.17

17.88%

Saudi Arabia All Share TASI

-12.63%

-0.89

14.47%

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)

-4.72%

EBIT to Interest (avg)

25.44

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

172.65

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

Bearish

Mildly Bullish

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

2What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 454.71 MM

ROCE(HY)

Lowest at 0%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 160.21%

RAW MATERIAL COST(Y)

Grown by 5.83% (YoY

CASH AND EQV(HY)

Lowest at SAR 77.47 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at SAR 0

OPERATING PROFIT(Q)

Lowest at SAR 104.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 24.31 %

PRE-TAX PROFIT(Q)

Lowest at SAR 0 MM

EPS(Q)

Lowest at SAR 0

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

Pre-Tax Profit

At SAR 0 MM has Fallen at -100%

over average net sales of the previous four periods of SAR 107.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Operating Cash Flow

Lowest at SAR 454.71 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)

Operating Profit

Lowest at SAR 104.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SAR MM)

Operating Profit Margin

Lowest at 24.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SAR 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

EPS

Lowest at SAR 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Cash and Eqv

Lowest at SAR 77.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at SAR 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SAR)

Dividend Payout Ratio

Lowest at 160.21%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 5.83% (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