United Electronics Co. (4003) 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

United Electronics Co.

Why is United Electronics Co. ?

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 4.54% and Operating profit at 17.88% 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 39.31% signifying low profitability per unit of shareholders funds

Positive results in Dec 25

INTEREST COVERAGE RATIO(Q) Highest at 2,328.89
RAW MATERIAL COST(Y) Fallen by -5.06% (YoY)
CASH AND EQV(HY) Highest at SAR 3,795.55 MM

With ROE of 38.22%, it has a very attractive valuation with a 4.29 Price to Book Value

Over the past year, while the stock has generated a return of -11.12%, its profits have risen by 18.8% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to United Electronics Co. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is United Electronics Co. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

United Electronics Co.

-10.93%

-0.31

18.32%

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)

4.54%

EBIT Growth (5y)

17.88%

EBIT to Interest (avg)

10.29

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

7.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

37.14%

ROE (avg)

39.31%

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

4.29

EV to EBIT

9.19

EV to EBITDA

7.93

EV to Capital Employed

4.52

EV to Sales

0.96

PEG Ratio

0.60

Dividend Yield

9.31%

ROCE (Latest)

49.15%

ROE (Latest)

38.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,328.89

RAW MATERIAL COST(Y)

Fallen by -5.06% (YoY

CASH AND EQV(HY)

Highest at SAR 3,795.55 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 52.82 times

OPERATING PROFIT(Q)

Highest at SAR 276.21 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.44 %

PRE-TAX PROFIT(Q)

Highest at SAR 233.67 MM

NET PROFIT(Q)

Highest at SAR 199.17 MM

-4What is not working for the Company

ROCE(HY)

Lowest at 29.71%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at SAR 52.82

Here's what is working for United Electronics Co.

Interest Coverage Ratio

Highest at 2,328.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at SAR 276.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 15.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SAR 233.67 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 199.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

Cash and Eqv

Highest at SAR 3,795.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 52.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.06% (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 United Electronics Co.

Dividend per share

Lowest at SAR 52.82

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SAR)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)