Saudi Marketing Co. (4006) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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 Marketing Co.

Why is Saudi Marketing Co. ?

Poor Management Efficiency with a low ROCE of 6.35%

The company has been able to generate a Return on Capital Employed (avg) of 6.35% 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 -0.40% and Operating profit at 4.98% 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 3.88% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.40% and Operating profit at 4.98% over the last 5 years

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 194.48 %
DEBTORS TURNOVER RATIO(HY) Lowest at 0%

With ROE of 3.64%, it has a attractive valuation with a 1.07 Price to Book Value

Over the past year, while the stock has generated a return of -39.16%, its profits have risen by 20.6% ; the PEG ratio of the company is 1.4

Real-Time Research Report

Verdict Report

How much should you hold?

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Marketing Co.

-100.0%

-1.33

26.94%

Saudi Arabia All Share TASI

-12.63%

-0.87

14.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.40%

EBIT Growth (5y)

4.98%

EBIT to Interest (avg)

1.19

Debt to EBITDA (avg)

2.83

Net Debt to Equity (avg)

0.93

Sales to Capital Employed (avg)

1.37

Tax Ratio

40.98%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.35%

ROE (avg)

3.88%

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

1.07

EV to EBIT

12.58

EV to EBITDA

5.56

EV to Capital Employed

1.04

EV to Sales

0.78

PEG Ratio

1.43

Dividend Yield

ROCE (Latest)

8.24%

ROE (Latest)

3.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.12% (YoY

CASH AND EQV(HY)

Highest at SAR 90.61 MM

NET PROFIT(Q)

Highest at SAR 7.88 MM

EPS(Q)

Highest at SAR 0.18

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 194.48 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

NET SALES(Q)

Lowest at SAR 438.01 MM

Here's what is working for Saudi Marketing Co.

Net Profit

Highest at SAR 7.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Cash and Eqv

Highest at SAR 90.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.12% (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 Marketing Co.

Inventory Turnover Ratio

Lowest at 0% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at SAR 438.01 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Debt-Equity Ratio

Highest at 194.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity 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