ScoreWhy is Saudi Ground Services Co. ?
1
Poor Management Efficiency with a low ROCE of 5.77%
- The company has been able to generate a Return on Capital Employed (avg) of 5.77% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 12.72% and Operating profit at 29.44% over the last 5 years
3
Flat results in Mar 26
- INTEREST(Q) At SAR 2.76 MM has Grown at 199.78%
- INTEREST COVERAGE RATIO(Q) Lowest at 2,383.43
- RAW MATERIAL COST(Y) Grown by 39.37% (YoY)
4
With ROE of 16.04%, it has a very attractive valuation with a 2.38 Price to Book Value
- Over the past year, while the stock has generated a return of -31.48%, its profits have risen by 36.4% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 6.4
5
Below par performance in long term as well as near term
- Along with generating -31.48% 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 ReportHow 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 Transport Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Saudi Ground Services Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Saudi Ground Services Co.
-31.48%
-1.46
26.61%
Saudi Arabia All Share TASI
-0.13%
-0.01
13.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.72%
EBIT Growth (5y)
29.44%
EBIT to Interest (avg)
1.06
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.32
Sales to Capital Employed (avg)
1.03
Tax Ratio
12.65%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.77%
ROE (avg)
4.87%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
2.38
EV to EBIT
14.48
EV to EBITDA
9.41
EV to Capital Employed
3.07
EV to Sales
1.85
PEG Ratio
0.41
Dividend Yield
6.43%
ROCE (Latest)
21.18%
ROE (Latest)
16.04%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SAR 759.52 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 2.4 times
-12What is not working for the Company
INTEREST(Q)
At SAR 2.76 MM has Grown at 199.78%
INTEREST COVERAGE RATIO(Q)
Lowest at 2,383.43
RAW MATERIAL COST(Y)
Grown by 39.37% (YoY
OPERATING PROFIT(Q)
Lowest at SAR 65.73 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.77 %
PRE-TAX PROFIT(Q)
Lowest at SAR 32.56 MM
NET PROFIT(Q)
Lowest at SAR 60.45 MM
EPS(Q)
Lowest at SAR 0.32
Here's what is working for Saudi Ground Services Co.
Operating Cash Flow
Highest at SAR 759.52 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SAR MM)
Debtors Turnover Ratio
Highest at 2.4 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at SAR 50.32 MM
in the last five periodsMOJO 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 Ground Services Co.
Interest
At SAR 2.76 MM has Grown at 199.78%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SAR MM)
Interest Coverage Ratio
Lowest at 2,383.43
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At SAR 32.56 MM has Fallen at -64.03%
over average net sales of the previous four periods of SAR 90.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (SAR MM)
Operating Profit
Lowest at SAR 65.73 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (SAR MM)
Operating Profit Margin
Lowest at 9.77 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SAR 32.56 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SAR MM)
Net Profit
Lowest at SAR 60.45 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SAR MM)
EPS
Lowest at SAR 0.32
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SAR)
Raw Material Cost
Grown by 39.37% (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
Non Operating Income
Highest at SAR 0.61 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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