Saudi Public Transport Co. (4040) 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 Public Transport Co.

Why is Saudi Public Transport Co. ?

Poor Management Efficiency with a low ROCE of 0.91%

The company has been able to generate a Return on Capital Employed (avg) of 0.91% 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 1.98% and Operating profit at 11.57% 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 1.08% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

RAW MATERIAL COST(Y) Grown by 139.89% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 37.97 times
NET SALES(Q) At SAR 302.49 MM has Fallen at -14.76%

With ROE of 5.69%, it has a fair valuation with a 1.78 Price to Book Value

Over the past year, while the stock has generated a return of -55.04%, its profits have risen by 309.3% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -55.04% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in each of the last 3 annual periods

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 Transport Services)

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

Is Saudi Public Transport Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Public Transport Co.

-100.0%

-1.83

27.87%

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)

1.98%

EBIT Growth (5y)

11.57%

EBIT to Interest (avg)

-2.31

Debt to EBITDA (avg)

5.83

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

0.63

Tax Ratio

22.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.91%

ROE (avg)

1.08%

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

1.78

EV to EBIT

-2143.28

EV to EBITDA

13.99

EV to Capital Employed

1.34

EV to Sales

2.02

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

-0.06%

ROE (Latest)

5.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

6What is working for the Company

NET PROFIT(HY)

Higher at SAR 36.76 MM

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 139.89% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 37.97 times

NET SALES(Q)

At SAR 302.49 MM has Fallen at -14.76%

NET PROFIT(Q)

At SAR 2.17 MM has Fallen at -58.71%

Here's what is working for Saudi Public Transport Co.

Depreciation

Highest at SAR 55.05 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 Public Transport Co.

Net Sales

At SAR 302.49 MM has Fallen at -14.76%

over average net sales of the previous four periods of SAR 354.88 MM

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Net Profit

At SAR 2.17 MM has Fallen at -58.71%

over average net sales of the previous four periods of SAR 5.24 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Inventory Turnover Ratio

Lowest at 37.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 139.89% (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 4 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income