Savola Group (2050) 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

Savola Group

Why is Savola Group ?

Poor Management Efficiency with a low ROCE of 9.02%

The company has been able to generate a Return on Capital Employed (avg) of 9.02% 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 2.44% and Operating profit at -7.52% 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 56.84% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.44% and Operating profit at -7.52% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at SAR 825.69 MM
PRE-TAX PROFIT(Q) At SAR 247.96 MM has Fallen at -91.43%
NET PROFIT(Q) At SAR 434.11 MM has Fallen at -84.97%

With ROE of 233.85%, it has a fair valuation with a 1.56 Price to Book Value

Over the past year, while the stock has generated a return of -40.55%, its profits have risen by 1135.4%

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 Other Agricultural Products)

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

Is Savola Group for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Savola Group

-39.43%

-0.52

31.55%

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)

2.44%

EBIT Growth (5y)

-7.52%

EBIT to Interest (avg)

1.30

Debt to EBITDA (avg)

2.56

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

2.07

Tax Ratio

4.93%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.02%

ROE (avg)

56.84%

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

1.56

EV to EBIT

11.30

EV to EBITDA

4.54

EV to Capital Employed

1.44

EV to Sales

0.36

PEG Ratio

Dividend Yield

ROCE (Latest)

12.78%

ROE (Latest)

233.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SAR 825.69 MM

PRE-TAX PROFIT(Q)

At SAR 247.96 MM has Fallen at -91.43%

NET PROFIT(Q)

At SAR 434.11 MM has Fallen at -84.97%

RAW MATERIAL COST(Y)

Grown by 5.69% (YoY

Here's what is working for Savola Group

Depreciation

Highest at SAR 314.02 MM

in the last five periods

MOJO Watch

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

Depreciation (SAR MM)

Here's what is not working for Savola Group

Pre-Tax Profit

At SAR 247.96 MM has Fallen at -91.43%

over average net sales of the previous four periods of SAR 2,893.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Operating Cash Flow

Lowest at SAR 825.69 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 Profit

At SAR 434.11 MM has Fallen at -84.97%

over average net sales of the previous four periods of SAR 2,887.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Raw Material Cost

Grown by 5.69% (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