United International Transportation Co. Ltd. (4260) 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 International Transportation Co. Ltd.

Why is United International Transportation Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 12.80%

The company has been able to generate a Return on Capital Employed (avg) of 12.80% 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 19.37% and Operating profit at 22.72% 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 13.84% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

INTEREST(9M) At SAR 74.02 MM has Grown at 65.46%
RAW MATERIAL COST(Y) Grown by 9.55% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 3.45 times

With ROE of 12.35%, it has a very attractive valuation with a 1.93 Price to Book Value

Over the past year, while the stock has generated a return of -46.06%, its profits have risen by 23.6% ; the PEG ratio of the company is 0.7

Below par performance in long term as well as near term

Along with generating -46.06% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to United International Transportation Co. Ltd. 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 International Transportation Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

United International Transportation Co. Ltd.

-100.0%

-1.12

38.00%

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)

19.37%

EBIT Growth (5y)

22.72%

EBIT to Interest (avg)

39.70

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

3.31%

Dividend Payout Ratio

34.15%

Pledged Shares

Institutional Holding

ROCE (avg)

12.80%

ROE (avg)

13.84%

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

1.93

EV to EBIT

18.08

EV to EBITDA

7.63

EV to Capital Employed

1.60

EV to Sales

3.11

PEG Ratio

0.66

Dividend Yield

0.13%

ROCE (Latest)

8.86%

ROE (Latest)

12.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 177.12 MM

NET SALES(Q)

Highest at SAR 629.98 MM

-6What is not working for the Company

INTEREST(9M)

At SAR 74.02 MM has Grown at 65.46%

RAW MATERIAL COST(Y)

Grown by 9.55% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.45 times

OPERATING PROFIT MARGIN(Q)

Lowest at 36.76 %

Here's what is working for United International Transportation Co. Ltd.

Operating Cash Flow

Highest at SAR 177.12 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)

Net Sales

Highest at SAR 629.98 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SAR MM)

Depreciation

Highest at SAR 142.94 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 United International Transportation Co. Ltd.

Interest

At SAR 74.02 MM has Grown at 65.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Operating Profit Margin

Lowest at 36.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.55% (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