Saudi Steel Pipe Co. (1320) 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 Steel Pipe Co.

Why is Saudi Steel Pipe Co. ?

Poor Management Efficiency with a low ROCE of 12.74%

The company has been able to generate a Return on Capital Employed (avg) of 12.74% 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 21.54% and Operating profit at 44.12% 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 14.62% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 2 consecutive quarters

The company has declared negative results in Dec 24 after 6 consecutive negative quarters
NET SALES(Q) At SAR 336.4 MM has Fallen at -14.25%

With ROE of 33.66%, it has a expensive valuation with a 3.46 Price to Book Value

Over the past year, while the stock has generated a return of -41.13%, its profits have fallen by -2.8%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -12.63% in the last 1 year, its fall in the stock was much higher with a return of -41.13%

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 Ferrous Metals)

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

Is Saudi Steel Pipe Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudi Steel Pipe Co.

-100.0%

-1.39

31.69%

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)

21.54%

EBIT Growth (5y)

44.12%

EBIT to Interest (avg)

3.10

Debt to EBITDA (avg)

2.86

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.16

Tax Ratio

5.19%

Dividend Payout Ratio

27.98%

Pledged Shares

Institutional Holding

ROCE (avg)

12.74%

ROE (avg)

14.62%

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

3.46

EV to EBIT

11.35

EV to EBITDA

8.44

EV to Capital Employed

3.08

EV to Sales

2.00

PEG Ratio

Dividend Yield

0.38%

ROCE (Latest)

27.15%

ROE (Latest)

33.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 264.34 MM

RAW MATERIAL COST(Y)

Fallen by -6.16% (YoY

CASH AND EQV(HY)

Highest at SAR 334.21 MM

DEBT-EQUITY RATIO (HY)

Lowest at 19.31 %

PRE-TAX PROFIT(Q)

Highest at SAR 99.87 MM

NET PROFIT(Q)

Highest at SAR 70.83 MM

EPS(Q)

Highest at SAR 1.39

-6What is not working for the Company

NET SALES(Q)

At SAR 336.4 MM has Fallen at -14.25%

Here's what is working for Saudi Steel Pipe Co.

Operating Cash Flow

Highest at SAR 264.34 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Pre-Tax Profit

Highest at SAR 99.87 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 70.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 1.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Cash and Eqv

Highest at SAR 334.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 19.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.16% (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 Steel Pipe Co.

Net Sales

At SAR 336.4 MM has Fallen at -14.25%

over average net sales of the previous four periods of SAR 392.29 MM

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)