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

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 22.66% and Operating profit at 58.19% 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

Negative results in Dec 25

ROCE(HY) Lowest at 16.52%
INVENTORY TURNOVER RATIO(HY) Lowest at 0 times
DEBTORS TURNOVER RATIO(HY) Lowest at 0 times

Underperformed the market in the last 1 year

Even though the market (Saudi Arabia All Share TASI) generated negative returns of -11.13% in the last 1 year, its fall in the stock was much higher with a return of -48.15%

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.

-48.15%

-1.50

31.27%

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)

22.66%

EBIT Growth (5y)

58.19%

EBIT to Interest (avg)

3.10

Debt to EBITDA (avg)

2.86

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.22

Tax Ratio

5.19%

Dividend Payout Ratio

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

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -0.12% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 0 %

OPERATING PROFIT(Q)

Highest at SAR 100.04 MM

-9What is not working for the Company

ROCE(HY)

Lowest at 16.52%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

PRE-TAX PROFIT(Q)

Lowest at SAR 0 MM

EPS(Q)

Lowest at SAR 0

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

Operating Profit

Highest at SAR 100.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Debt-Equity Ratio

Lowest at 0 %

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 -0.12% (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 Steel Pipe Co.

Pre-Tax Profit

At SAR 0 MM has Fallen at -100%

over average net sales of the previous four periods of SAR 61.19 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Pre-Tax Profit

Lowest at SAR 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

EPS

Lowest at SAR 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio