ScoreWhy is Saudi Chemical Co. ?
1
Poor Management Efficiency with a low ROCE of 8.07%
- The company has been able to generate a Return on Capital Employed (avg) of 8.07% signifying low profitability per unit of total capital (equity and debt)
2
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 17.87% and Operating profit at 26.63% 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 7.90% signifying low profitability per unit of shareholders funds
- RAW MATERIAL COST(Y) Fallen by -1.03% (YoY)
- NET SALES(Q) Highest at SAR 1,765.62 MM
3
With ROE of 12.95%, it has a very expensive valuation with a 2.79 Price to Book Value
- Over the past year, while the stock has generated a return of -32.50%, its profits have fallen by -1.9%
- At the current price, the company has a high dividend yield of 0.7
4
Underperformed the market in the last 1 year
- Even though the market (Saudi Arabia All Share TASI) generated negative returns of -12.84% in the last 1 year, its fall in the stock was much higher with a return of -32.50%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Saudi Chemical Co. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Saudi Chemical Co. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Saudi Chemical Co.
-31.94%
-0.89
35.45%
Saudi Arabia All Share TASI
-12.63%
-0.89
14.47%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.87%
EBIT Growth (5y)
26.63%
EBIT to Interest (avg)
4.68
Debt to EBITDA (avg)
6.19
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
1.63
Tax Ratio
12.71%
Dividend Payout Ratio
14.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.07%
ROE (avg)
7.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
2.79
EV to EBIT
17.84
EV to EBITDA
15.53
EV to Capital Employed
2.05
EV to Sales
1.18
PEG Ratio
NA
Dividend Yield
0.69%
ROCE (Latest)
11.48%
ROE (Latest)
12.95%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.03% (YoY
NET SALES(Q)
Highest at SAR 1,765.62 MM
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SAR -292.17 MM
INTEREST(Q)
At SAR 27.37 MM has Grown at 17.03%
Here's what is working for Saudi Chemical Co.
Net Sales
Highest at SAR 1,765.62 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SAR MM)
Raw Material Cost
Fallen by -1.03% (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
Here's what is not working for Saudi Chemical Co.
Interest
At SAR 27.37 MM has Grown at 17.03%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Operating Cash Flow
Lowest at SAR -292.17 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SAR MM)
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