Saudi Ceramic Co. (2040) 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 Ceramic Co.

Why is Saudi Ceramic Co. ?

Poor Management Efficiency with a low ROCE of 4.95%

The company has been able to generate a Return on Capital Employed (avg) of 4.95% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.30% and Operating profit at -151.19% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.77% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.30% and Operating profit at -151.19% over the last 5 years

Positive results in Sep 25

ROCE(HY) Highest at 3.82%
PRE-TAX PROFIT(Q) At SAR 9.34 MM has Grown at 240.36%
NET PROFIT(Q) At SAR 6.32 MM has Grown at 231.84%

With ROE of -1.67%, it has a very attractive valuation with a 2.05 Price to Book Value

Over the past year, while the stock has generated a return of -22.51%, its profits have risen by 77.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saudi Ceramic 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 Ceramic Co. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Saudi Ceramic Co.

-100.0%

-0.06

35.42%

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)

-1.30%

EBIT Growth (5y)

-151.19%

EBIT to Interest (avg)

3.86

Debt to EBITDA (avg)

3.79

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.58

Tax Ratio

9.39%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.95%

ROE (avg)

5.77%

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

2.05

EV to EBIT

-197.32

EV to EBITDA

30.65

EV to Capital Employed

1.73

EV to Sales

2.78

PEG Ratio

Dividend Yield

1.25%

ROCE (Latest)

-0.88%

ROE (Latest)

-1.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

11What is working for the Company

ROCE(HY)

Highest at 3.82%

PRE-TAX PROFIT(Q)

At SAR 9.34 MM has Grown at 240.36%

NET PROFIT(Q)

At SAR 6.32 MM has Grown at 231.84%

RAW MATERIAL COST(Y)

Fallen by -35.14% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 16.41 %

-2What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 104.66 MM

Here's what is working for Saudi Ceramic Co.

Pre-Tax Profit

At SAR 9.34 MM has Grown at 240.36%

over average net sales of the previous four periods of SAR -6.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 6.32 MM has Grown at 231.84%

over average net sales of the previous four periods of SAR -4.8 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SAR MM)

Operating Profit Margin

Highest at 16.41 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -35.14% (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

Depreciation

Highest at SAR 41.7 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SAR MM)

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

Operating Cash Flow

Lowest at SAR 104.66 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)