Umm Al-Qura Cement Co. (3005) 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

Umm Al-Qura Cement Co.

Why is Umm Al-Qura Cement Co. ?

Poor Management Efficiency with a low ROCE of 6.69%

The company has been able to generate a Return on Capital Employed (avg) of 6.69% 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 -3.95% and Operating profit at -17.50% 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 6.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.95% and Operating profit at -17.50% over the last 5 years

With ROE of 4.61%, it has a very expensive valuation with a 0.98 Price to Book Value

Over the past year, while the stock has generated a return of -31.54%, its profits have risen by 73.4% ; the PEG ratio of the company is 0.3

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 Building Products)

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

Is Umm Al-Qura Cement Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Umm Al-Qura Cement Co.

-30.82%

-0.98

20.51%

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)

-3.95%

EBIT Growth (5y)

-17.50%

EBIT to Interest (avg)

4.49

Debt to EBITDA (avg)

2.45

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.20

Tax Ratio

14.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.69%

ROE (avg)

6.51%

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

0.98

EV to EBIT

19.11

EV to EBITDA

9.63

EV to Capital Employed

0.98

EV to Sales

4.05

PEG Ratio

0.29

Dividend Yield

ROCE (Latest)

5.13%

ROE (Latest)

4.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly 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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 69.47 MM

DEBT-EQUITY RATIO (HY)

Lowest at 24.76 %

INTEREST COVERAGE RATIO(Q)

Highest at 1,416.03

NET SALES(Q)

Highest at SAR 73.59 MM

OPERATING PROFIT(Q)

Highest at SAR 29.52 MM

PRE-TAX PROFIT(Q)

Highest at SAR 14 MM

NET PROFIT(Q)

Highest at SAR 11.81 MM

EPS(Q)

Highest at SAR 0.21

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 9.64% (YoY

CASH AND EQV(HY)

Lowest at SAR 14.76 MM

Here's what is working for Umm Al-Qura Cement Co.

Operating Cash Flow

Highest at SAR 69.47 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Interest Coverage Ratio

Highest at 1,416.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 24.76 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at SAR 73.59 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Operating Profit

Highest at SAR 29.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Pre-Tax Profit

Highest at SAR 14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Net Profit

Highest at SAR 11.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 0.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Depreciation

Highest at SAR 13.76 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 Umm Al-Qura Cement Co.

Cash and Eqv

Lowest at SAR 14.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 9.64% (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