Saudi Telecom Co. (7010) 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 Telecom Co.

Why is Saudi Telecom Co. ?

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at SAR 18,283 MM
CASH AND EQV(HY) Lowest at SAR 16,616.03 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 0 times

With ROE of 17.19%, it has a very attractive valuation with a 2.70 Price to Book Value

Over the past year, while the stock has generated a return of -2.37%, its profits have risen by 0.6% ; the PEG ratio of the company is 15.7
At the current price, the company has a high dividend yield of 5.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saudi Telecom Co. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Saudi Telecom Co. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Saudi Telecom Co.

-100.0%

1.07

16.64%

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)

5.71%

EBIT Growth (5y)

9.98%

EBIT to Interest (avg)

16.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.75

Tax Ratio

5.25%

Dividend Payout Ratio

74.07%

Pledged Shares

Institutional Holding

ROCE (avg)

21.66%

ROE (avg)

16.73%

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

2.70

EV to EBIT

15.34

EV to EBITDA

9.08

EV to Capital Employed

2.70

EV to Sales

2.92

PEG Ratio

15.73

Dividend Yield

5.81%

ROCE (Latest)

17.62%

ROE (Latest)

17.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

7What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT(Q)

Highest at SAR 9,791.59 MM

RAW MATERIAL COST(Y)

Fallen by -40.26% (YoY

NET SALES(Q)

Highest at SAR 19,894.82 MM

OPERATING PROFIT MARGIN(Q)

Highest at 49.22 %

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 18,283 MM

CASH AND EQV(HY)

Lowest at SAR 16,616.03 MM

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 Telecom Co.

Operating Profit

Highest at SAR 9,791.59 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (SAR MM)

Net Sales

Highest at SAR 19,894.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Profit Margin

Highest at 49.22 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -40.26% (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 Telecom Co.

Pre-Tax Profit

At SAR 0 MM has Fallen at -100%

over average net sales of the previous four periods of SAR 3,730.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Operating Cash Flow

Lowest at SAR 18,283 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (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)

Cash and Eqv

Lowest at SAR 16,616.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

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