ScoreWhy is Southern Province Cement Co. ?
1
Poor Management Efficiency with a low ROCE of 10.76%
- The company has been able to generate a Return on Capital Employed (avg) of 10.76% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -11.66% and Operating profit at -22.65% over the last 5 years
3
With a fall in Net Sales of -9.01%, the company declared Very Negative results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at SAR 186.33 MM
- ROCE(HY) Lowest at 5.87%
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.6%
4
With ROE of 5.84%, it has a very expensive valuation with a 1.10 Price to Book Value
- Over the past year, while the stock has generated a return of -36.30%, its profits have fallen by -11.9%
- At the current price, the company has a high dividend yield of 0.4
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -36.30% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in each of the last 3 annual periods
Real-Time Research ReportHow 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 Building Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Southern Province Cement Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Southern Province Cement Co.
-35.74%
-2.10
19.65%
Saudi Arabia All Share TASI
-12.63%
-0.89
14.47%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-11.66%
EBIT Growth (5y)
-22.65%
EBIT to Interest (avg)
47.04
Debt to EBITDA (avg)
0.36
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
0.26
Tax Ratio
11.46%
Dividend Payout Ratio
68.93%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.76%
ROE (avg)
9.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.10
EV to EBIT
21.86
EV to EBITDA
11.49
EV to Capital Employed
1.08
EV to Sales
5.19
PEG Ratio
NA
Dividend Yield
0.38%
ROCE (Latest)
4.94%
ROE (Latest)
5.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SAR 186.33 MM
ROCE(HY)
Lowest at 5.87%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.6%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.72%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 19.67% (YoY
CASH AND EQV(HY)
Lowest at SAR 398.29 MM
DEBT-EQUITY RATIO
(HY)
Highest at 28.25 %
DIVIDEND PER SHARE(HY)
Lowest at SAR 5.72
NET SALES(Q)
Lowest at SAR 195 MM
OPERATING PROFIT(Q)
Lowest at SAR 67.61 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 34.67 %
PRE-TAX PROFIT(Q)
Lowest at SAR 21.79 MM
NET PROFIT(Q)
Lowest at SAR 15.27 MM
EPS(Q)
Lowest at SAR 0.11
Here's what is not working for Southern Province Cement Co.
Operating Cash Flow
Lowest at SAR 186.33 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SAR MM)
Inventory Turnover Ratio
Lowest at 0.6% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.72% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Sales
Lowest at SAR 195 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (SAR MM)
Operating Profit
Lowest at SAR 67.61 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (SAR MM)
Operating Profit Margin
Lowest at 34.67 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SAR 21.79 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SAR MM)
Net Profit
Lowest at SAR 15.27 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SAR MM)
EPS
Lowest at SAR 0.11
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SAR)
Cash and Eqv
Lowest at SAR 398.29 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 28.25 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend per share
Lowest at SAR 5.72
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (SAR)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 19.67% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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