Saudia Dairy & Foodstuff Co. (2270) 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

Saudia Dairy & Foodstuff Co.

Why is Saudia Dairy & Foodstuff Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.94% and Operating profit at 4.99% over the last 5 years

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at SAR 487.57 MM
RAW MATERIAL COST(Y) Grown by 29.34% (YoY)
NET SALES(Q) At SAR 628.92 MM has Fallen at -16.1%

With ROE of 26.72%, it has a very attractive valuation with a 5.29 Price to Book Value

Over the past year, while the stock has generated a return of -37.25%, its profits have fallen by -2.5%
At the current price, the company has a high dividend yield of 2.8

Below par performance in long term as well as near term

Along with generating -37.25% returns in the last 1 year, the stock has also underperformed 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 Saudia Dairy & Foodstuff Co. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

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

Is Saudia Dairy & Foodstuff Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saudia Dairy & Foodstuff Co.

-36.82%

-1.75

24.08%

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)

6.94%

EBIT Growth (5y)

4.99%

EBIT to Interest (avg)

28.54

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

1.84

Tax Ratio

4.65%

Dividend Payout Ratio

107.23%

Pledged Shares

Institutional Holding

ROCE (avg)

44.70%

ROE (avg)

23.96%

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

5.29

EV to EBIT

19.18

EV to EBITDA

15.36

EV to Capital Employed

7.86

EV to Sales

2.82

PEG Ratio

Dividend Yield

2.81%

ROCE (Latest)

40.97%

ROE (Latest)

26.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

ROCE(HY)

Highest at 27.49%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

INVENTORY TURNOVER RATIO(HY)

Highest at 4.14 times

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 487.57 MM

RAW MATERIAL COST(Y)

Grown by 29.34% (YoY

NET SALES(Q)

At SAR 628.92 MM has Fallen at -16.1%

PRE-TAX PROFIT(Q)

Lowest at SAR 81.34 MM

NET PROFIT(Q)

Lowest at SAR 74.09 MM

EPS(Q)

Lowest at SAR 1.54

Here's what is working for Saudia Dairy & Foodstuff Co.

Inventory Turnover Ratio

Highest at 4.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at SAR 35.88 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SAR MM)

Depreciation

At SAR 35.88 MM has Grown at 33.31%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (SAR MM)

Here's what is not working for Saudia Dairy & Foodstuff Co.

Operating Cash Flow

Lowest at SAR 487.57 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)

Net Sales

At SAR 628.92 MM has Fallen at -16.1%

over average net sales of the previous four periods of SAR 749.61 MM

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Pre-Tax Profit

Lowest at SAR 81.34 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Pre-Tax Profit

At SAR 81.34 MM has Fallen at -41.22%

over average net sales of the previous four periods of SAR 138.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SAR MM)

Net Profit

Lowest at SAR 74.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

Net Profit

At SAR 74.09 MM has Fallen at -44.09%

over average net sales of the previous four periods of SAR 132.52 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR 1.54

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Raw Material Cost

Grown by 29.34% (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