Why is United Wire Factories Co. ?
1
Poor Management Efficiency with a low ROCE of 12.58%
- The company has been able to generate a Return on Capital Employed (avg) of 12.58% 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 -1.74% and Operating profit at -35.23% over the last 5 years
3
The company has declared Negative results for the last 9 consecutive quarters
- NET PROFIT(HY) At SAR 1.24 MM has Grown at -87.86%
- OPERATING CASH FLOW(Y) Lowest at SAR 9.81 MM
- ROCE(HY) Lowest at 1.92%
4
With ROE of 1.96%, it has a fair valuation with a 1.90 Price to Book Value
- Over the past year, while the stock has generated a return of -31.59%, its profits have fallen by -65.1%
5
Below par performance in long term as well as near term
- Along with generating -31.59% 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
How much should you hold?
- Overall Portfolio exposure to United Wire Factories Co. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is United Wire Factories Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
United Wire Factories Co.
-32.29%
-1.28
25.86%
Saudi Arabia All Share TASI
-12.63%
-0.89
14.47%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.74%
EBIT Growth (5y)
-35.23%
EBIT to Interest (avg)
43.33
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
1.97
Tax Ratio
47.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.58%
ROE (avg)
8.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
97
Industry P/E
Price to Book Value
1.90
EV to EBIT
72.99
EV to EBITDA
30.42
EV to Capital Employed
2.05
EV to Sales
0.94
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.81%
ROE (Latest)
1.96%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
2What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 4.47%
NET SALES(Q)
Highest at SAR 181.4 MM
-13What is not working for the Company
NET PROFIT(HY)
At SAR 1.24 MM has Grown at -87.86%
OPERATING CASH FLOW(Y)
Lowest at SAR 9.81 MM
ROCE(HY)
Lowest at 1.92%
RAW MATERIAL COST(Y)
Grown by 25.91% (YoY
CASH AND EQV(HY)
Lowest at SAR 72.62 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.61%
Here's what is working for United Wire Factories Co.
Net Sales
Highest at SAR 181.4 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SAR MM)
Inventory Turnover Ratio
Highest at 4.47%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for United Wire Factories Co.
Net Profit
At SAR 1.24 MM has Grown at -87.86%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (SAR MM)
Operating Cash Flow
Lowest at SAR 9.81 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SAR MM)
Cash and Eqv
Lowest at SAR 72.62 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 6.61%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 25.91% (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






