Thob Al-Aseel Co. (4012) 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

Thob Al-Aseel Co.

Why is Thob Al-Aseel Co. ?

Poor Management Efficiency with a low ROCE of 22.85%

The company has been able to generate a Return on Capital Employed (avg) of 22.85% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 0.03% and Operating profit at 2.90% over the last 5 years

Flat results in Dec 25

ROCE(HY) Lowest at 0%
DIVIDEND PAYOUT RATIO(Y) Lowest at 183.82%
INVENTORY TURNOVER RATIO(HY) Lowest at 0 times

With ROE of 16.40%, it has a very attractive valuation with a 2.31 Price to Book Value

Over the past year, while the stock has generated a return of -6.14%, its profits have risen by 19.3% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.14% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Thob Al-Aseel Co. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Thob Al-Aseel Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Thob Al-Aseel Co.

-6.14%

-0.68

25.12%

Saudi Arabia All Share TASI

0.01%

0.00

13.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.03%

EBIT Growth (5y)

2.90%

EBIT to Interest (avg)

42.20

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.85

Tax Ratio

13.87%

Dividend Payout Ratio

79.90%

Pledged Shares

Institutional Holding

ROCE (avg)

22.85%

ROE (avg)

14.04%

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

2.31

EV to EBIT

10.17

EV to EBITDA

8.53

EV to Capital Employed

3.31

EV to Sales

2.17

PEG Ratio

0.73

Dividend Yield

0.85%

ROCE (Latest)

32.53%

ROE (Latest)

16.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Bullish

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

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -3.84% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 40.45 %

-10What is not working for the Company

ROCE(HY)

Lowest at 0%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 183.82%

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 Thob Al-Aseel Co.

Operating Profit Margin

Highest at 40.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -3.84% (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 Thob Al-Aseel Co.

Pre-Tax Profit

At SAR 0 MM has Fallen at -100%

over average net sales of the previous four periods of SAR 26.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (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)

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

Dividend Payout Ratio

Lowest at 183.82%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)