Saudi Paper Manufacturing Co. (2300) 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 Paper Manufacturing Co.

Why is Saudi Paper Manufacturing Co. ?

Poor Management Efficiency with a low ROCE of 8.89%

The company has been able to generate a Return on Capital Employed (avg) of 8.89% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.57% and Operating profit at 12.93% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 14.16% signifying low profitability per unit of shareholders funds

With a growth in Net Profit of 65.09%, the company declared Very Positive results in Mar 26

RAW MATERIAL COST(Y) Fallen by -6.47% (YoY)
NET SALES(Q) Highest at SAR 251.35 MM
OPERATING PROFIT(Q) Highest at SAR 59.12 MM

With ROE of 7.82%, it has a very expensive valuation with a 3.40 Price to Book Value

Over the past year, while the stock has generated a return of -7.80%, its profits have fallen by -57.9%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saudi Paper Manufacturing Co. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Saudi Paper Manufacturing Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Paper Manufacturing Co.

-7.8%

-0.72

34.88%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.57%

EBIT Growth (5y)

12.93%

EBIT to Interest (avg)

2.21

Debt to EBITDA (avg)

3.65

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

0.81

Tax Ratio

3.22%

Dividend Payout Ratio

30.52%

Pledged Shares

Institutional Holding

ROCE (avg)

8.89%

ROE (avg)

14.16%

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

3.40

EV to EBIT

30.34

EV to EBITDA

16.98

EV to Capital Employed

2.27

EV to Sales

2.96

PEG Ratio

Dividend Yield

ROCE (Latest)

7.48%

ROE (Latest)

7.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.47% (YoY

NET SALES(Q)

Highest at SAR 251.35 MM

OPERATING PROFIT(Q)

Highest at SAR 59.12 MM

OPERATING PROFIT MARGIN(Q)

Highest at 23.52 %

PRE-TAX PROFIT(Q)

Highest at SAR 33.02 MM

NET PROFIT(Q)

Highest at SAR 34.15 MM

EPS(Q)

Highest at SAR 0.92

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 61.89 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.98 times

Here's what is working for Saudi Paper Manufacturing Co.

Net Sales

Highest at SAR 251.35 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Profit

Highest at SAR 59.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 23.52 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SAR 33.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Net Profit

Highest at SAR 34.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 0.92

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Raw Material Cost

Fallen by -6.47% (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 16.66 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 Paper Manufacturing Co.

Debtors Turnover Ratio

Lowest at 2.98 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at SAR 61.89 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)