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 Mar 26

OPERATING CASH FLOW(Y) Lowest at SAR 19,624.1 MM
DEBT-EQUITY RATIO (HY) Highest at 3.26 %
INTEREST(Q) Highest at SAR 330.67 MM

With ROE of 19.18%, it has a very attractive valuation with a 2.54 Price to Book Value

Over the past year, while the stock has generated a return of 1.58%, its profits have risen by 22.2% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 6.5

Market Beating performance in long term as well as near term

Along with generating 1.58% returns in the last 1 year, the stock has outperformed Saudi Arabia All Share TASI in the last 3 years, 1 year and 3 months

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.

1.58%

1.41

13.56%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

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)

2.41%

EBIT to Interest (avg)

16.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.74

Tax Ratio

5.25%

Dividend Payout Ratio

73.75%

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

2.54

EV to EBIT

14.74

EV to EBITDA

8.70

EV to Capital Employed

2.53

EV to Sales

2.74

PEG Ratio

0.60

Dividend Yield

6.48%

ROCE (Latest)

17.18%

ROE (Latest)

19.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.82% (YoY

NET SALES(Q)

Highest at SAR 19,938.71 MM

OPERATING PROFIT(Q)

Highest at SAR 6,556.73 MM

OPERATING PROFIT MARGIN(Q)

Highest at 32.88 %

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 19,624.1 MM

DEBT-EQUITY RATIO (HY)

Highest at 3.26 %

INTEREST(Q)

Highest at SAR 330.67 MM

Here's what is working for Saudi Telecom Co.

Net Sales

Highest at SAR 19,938.71 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Profit

Highest at SAR 6,556.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 32.88 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -5.82% (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.

Operating Cash Flow

Lowest at SAR 19,624.1 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)

Interest

Highest at SAR 330.67 MM

in the last five periods and Increased by 8.83% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Debt-Equity Ratio

Highest at 3.26 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio