Wafrah for Industry & Development (2100) 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

Wafrah for Industry & Development

Why is Wafrah for Industry & Development ?

Poor Management Efficiency with a low ROCE of 3.68%

The company has been able to generate a Return on Capital Employed (avg) of 3.68% 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 12.55% and Operating profit at -166.32% 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 2.69% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.55% and Operating profit at -166.32% over the last 5 years

With a fall in Net Sales of -21.56%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
PRE-TAX PROFIT(Q) At SAR -8.76 MM has Fallen at -101.48%
NET PROFIT(Q) At SAR -9.01 MM has Fallen at -89.53%
INTEREST(HY) At SAR 0.23 MM has Grown at 68.19%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -49.46%, its profits have fallen by -304.9%

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 FMCG)

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

Is Wafrah for Industry & Development for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wafrah for Industry & Development

-100.0%

-1.73

32.41%

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)

12.55%

EBIT Growth (5y)

-166.32%

EBIT to Interest (avg)

1.70

Debt to EBITDA (avg)

1.00

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.66

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.68%

ROE (avg)

2.69%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.76

EV to EBIT

-34.24

EV to EBITDA

-66.99

EV to Capital Employed

2.87

EV to Sales

4.22

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.38%

ROE (Latest)

-8.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 4.53 MM

-31What is not working for the Company

PRE-TAX PROFIT(Q)

At SAR -8.76 MM has Fallen at -101.48%

NET PROFIT(Q)

At SAR -9.01 MM has Fallen at -89.53%

INTEREST(HY)

At SAR 0.23 MM has Grown at 68.19%

ROCE(HY)

Lowest at -14.3%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.46 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2 times

NET SALES(Q)

At SAR 28.57 MM has Fallen at -21.56%

RAW MATERIAL COST(Y)

Grown by 58.68% (YoY

Here's what is working for Wafrah for Industry & Development

Operating Cash Flow

Highest at SAR 4.53 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Depreciation

Highest at SAR 2.53 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 Wafrah for Industry & Development

Pre-Tax Profit

At SAR -8.76 MM has Fallen at -101.48%

over average net sales of the previous four periods of SAR -4.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR -9.01 MM has Fallen at -89.53%

over average net sales of the previous four periods of SAR -4.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Net Sales

At SAR 28.57 MM has Fallen at -21.56%

over average net sales of the previous four periods of SAR 36.42 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (SAR MM)

Interest

At SAR 0.23 MM has Grown at 68.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SAR MM)

Inventory Turnover Ratio

Lowest at 2.46 times and Fallen

In each half year 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 2 times and Fallen

In each half year 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 58.68% (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