Saudi Co. for Hardware (4008) 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 Co. for Hardware

Why is Saudi Co. for Hardware ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.63%

Poor long term growth as Net Sales has grown by an annual rate of -6.44% and Operating profit at -33.41% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Operating Profit of 216.97%, the company declared Very Positive results in Sep 25

ROCE(HY) Highest at 15.16%
INTEREST COVERAGE RATIO(Q) Highest at 564.87
NET PROFIT(Q) Highest at SAR 39.36 MM

With ROE of 1.37%, it has a expensive valuation with a 3.45 Price to Book Value

Over the past year, while the stock has generated a return of -29.86%, its profits have risen by 112.5% ; the PEG ratio of the company is 2.2

Below par performance in long term as well as near term

Along with generating -29.86% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saudi Co. for Hardware should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Saudi Co. for Hardware for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Co. for Hardware

-29.22%

-1.32

29.01%

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)

-6.44%

EBIT Growth (5y)

-33.41%

EBIT to Interest (avg)

-0.09

Debt to EBITDA (avg)

2.63

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

1.95

Tax Ratio

39.94%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.63%

ROE (avg)

2.99%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

252

Industry P/E

Price to Book Value

3.45

EV to EBIT

104.64

EV to EBITDA

12.19

EV to Capital Employed

2.60

EV to Sales

1.29

PEG Ratio

2.24

Dividend Yield

ROCE (Latest)

2.49%

ROE (Latest)

1.37%

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

Mildly Bearish

Mildly Bullish

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

27What is working for the Company

ROCE(HY)

Highest at 15.16%

INTEREST COVERAGE RATIO(Q)

Highest at 564.87

NET PROFIT(Q)

Highest at SAR 39.36 MM

RAW MATERIAL COST(Y)

Fallen by 0.16% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 70.65 %

PRE-TAX PROFIT(Q)

Highest at SAR 39.36 MM

EPS(Q)

Highest at SAR 1.1

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.6 times

Here's what is working for Saudi Co. for Hardware

Pre-Tax Profit

At SAR 39.36 MM has Grown at 590.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SAR MM)

Net Profit

At SAR 39.36 MM has Grown at 538.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SAR MM)

Interest Coverage Ratio

Highest at 564.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

Highest at SAR 39.36 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SAR MM)

Pre-Tax Profit

Highest at SAR 39.36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

EPS

Highest at SAR 1.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Lowest at 70.65 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.16% (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 30.99 MM

in the last five periods

MOJO Watch

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

Depreciation (SAR MM)

Depreciation

At SAR 30.99 MM has Grown at 28.87%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (SAR MM)

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

Inventory Turnover Ratio

Lowest at 1.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio