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)

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 8.57% and Operating profit at 12.93% 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 14.16% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at SAR 23.88 MM
ROCE(HY) Lowest at 8.06%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.18 times

With ROE of 10.26%, it has a very expensive valuation with a 3.89 Price to Book Value

Over the past year, while the stock has generated a return of -18.30%, its profits have fallen by -47.1%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How 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 Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Saudi Paper Manufacturing Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Paper Manufacturing Co.

-17.27%

-0.85

37.73%

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)

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)

0.84

Tax Ratio

3.22%

Dividend Payout Ratio

33.30%

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

3.89

EV to EBIT

27.83

EV to EBITDA

16.85

EV to Capital Employed

2.56

EV to Sales

3.08

PEG Ratio

Dividend Yield

ROCE (Latest)

9.20%

ROE (Latest)

10.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.34% (YoY

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 23.88 MM

ROCE(HY)

Lowest at 8.06%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.18 times

INTEREST(Q)

At SAR 9.06 MM has Grown at 16.74%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.13 times

NET SALES(Q)

Lowest at SAR 189.04 MM

PRE-TAX PROFIT(Q)

Fallen at -57.88%

NET PROFIT(Q)

Fallen at -59.61%

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

Raw Material Cost

Fallen by -0.34% (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 Paper Manufacturing Co.

Interest

At SAR 9.06 MM has Grown at 16.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Debtors Turnover Ratio

Lowest at 3.18 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 23.88 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SAR MM)

Net Sales

Lowest at SAR 189.04 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Pre-Tax Profit

Fallen at -57.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Fallen at -59.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Inventory Turnover Ratio

Lowest at 4.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio