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RAKC

R.A.K. Ceramics P.J.S.CADX:RAKCEC Stock Report

Market Cap

د.إ2.7b

7D

1.5%

1Y

97.9%

Updated

27 Oct, 2021

Data

Company Financials +
RAKCEC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends3/6

RAKCEC Overview

R.A.K. Ceramics P.J.S.C. manufactures and sells various ceramic products in the Middle East, Europe, Asian countries, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for R.A.K. Ceramics P.J.S.C
Historical stock prices
Current Share Priceد.إ2.77
52 Week Highد.إ1.33
52 Week Lowد.إ3.08
Beta0.54
1 Month Change-0.72%
3 Month Change20.96%
1 Year Change97.86%
3 Year Change44.74%
5 Year Change20.55%
Change since IPO78.55%

Recent News & Updates

Aug 10
R.A.K. Ceramics P.J.S.C's (ADX:RAKCEC) Conservative Accounting Might Explain Soft Earnings

R.A.K. Ceramics P.J.S.C's (ADX:RAKCEC) Conservative Accounting Might Explain Soft Earnings

R.A.K. Ceramics P.J.S.C.'s ( ADX:RAKCEC ) recent soft profit numbers didn't appear to worry shareholders. We think that...

Aug 06
R.A.K. Ceramics P.J.S.C. (ADX:RAKCEC) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

R.A.K. Ceramics P.J.S.C. (ADX:RAKCEC) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

The investors in R.A.K. Ceramics P.J.S.C. 's ( ADX:RAKCEC ) will be rubbing their hands together with glee today, after...

Shareholder Returns

RAKCECAE BuildingAE Market
7D1.5%-0.4%-0.1%
1Y97.9%25.3%49.7%

Return vs Industry: RAKCEC exceeded the AE Building industry which returned 25.3% over the past year.

Return vs Market: RAKCEC exceeded the AE Market which returned 49.7% over the past year.

Price Volatility

Is RAKCEC's price volatile compared to industry and market?
RAKCEC volatility
RAKCEC Beta0.54
Industry Beta0.94
Market Beta1

Stable Share Price: RAKCEC is not significantly more volatile than the rest of AE stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RAKCEC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989n/aAbdallah Massaadhttps://www.rakceramics.com

R.A.K. Ceramics P.J.S.C. manufactures and sells various ceramic products in the Middle East, Europe, Asian countries, and internationally. The company operates through three segments: Ceramics Products, Other Industrial, and Others segments. It offers ceramic wall and floor tiles, gres porcellanato, and bath-ware and table ware, as well as sanitary ware products; and water closets, bidets, wash basins, urinals and partitions, furniture, mirrors and lights, bath tubs, shower trays, flushing systems, kitchen sinks, and accessories.

R.A.K. Ceramics P.J.S.C Fundamentals Summary

How do R.A.K. Ceramics P.J.S.C's earnings and revenue compare to its market cap?
RAKCEC fundamental statistics
Market Capد.إ2.73b
Earnings (TTM)د.إ4.67m
Revenue (TTM)د.إ2.77b

590.6x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAKCEC income statement (TTM)
Revenueد.إ2.77b
Cost of Revenueد.إ1.81b
Gross Profitد.إ956.34m
Expensesد.إ951.67m
Earningsد.إ4.67m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0047
Gross Margin34.54%
Net Profit Margin0.17%
Debt/Equity Ratio57.3%

How did RAKCEC perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

3,727%

Payout Ratio

Valuation

Is R.A.K. Ceramics P.J.S.C undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAKCEC (AED2.77) is trading below our estimate of fair value (AED4.98)

Significantly Below Fair Value: RAKCEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAKCEC is poor value based on its PE Ratio (590.6x) compared to the Asian Building industry average (15x).

PE vs Market: RAKCEC is poor value based on its PE Ratio (590.6x) compared to the AE market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: RAKCEC is poor value based on its PEG Ratio (21.2x)


Price to Book Ratio

PB vs Industry: RAKCEC is good value based on its PB Ratio (1.2x) compared to the XA Building industry average (1.4x).


Future Growth

How is R.A.K. Ceramics P.J.S.C forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAKCEC's forecast earnings growth (27.8% per year) is above the savings rate (9.1%).

Earnings vs Market: RAKCEC's earnings (27.8% per year) are forecast to grow faster than the AE market (9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RAKCEC's revenue (3% per year) is forecast to grow slower than the AE market (5.1% per year).

High Growth Revenue: RAKCEC's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAKCEC's Return on Equity is forecast to be low in 3 years time (12.2%).


Past Performance

How has R.A.K. Ceramics P.J.S.C performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAKCEC has a large one-off loss of AED157.7M impacting its June 30 2021 financial results.

Growing Profit Margin: RAKCEC's current net profit margins (0.2%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: RAKCEC's earnings have declined by 21.2% per year over the past 5 years.

Accelerating Growth: RAKCEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RAKCEC had negative earnings growth (-94.7%) over the past year, making it difficult to compare to the Building industry average (32.5%).


Return on Equity

High ROE: RAKCEC's Return on Equity (0.9%) is considered low.


Financial Health

How is R.A.K. Ceramics P.J.S.C's financial position?


Financial Position Analysis

Short Term Liabilities: RAKCEC's short term assets (AED2.9B) exceed its short term liabilities (AED1.8B).

Long Term Liabilities: RAKCEC's short term assets (AED2.9B) exceed its long term liabilities (AED931.1M).


Debt to Equity History and Analysis

Debt Level: RAKCEC's debt to equity ratio (57.3%) is considered high.

Reducing Debt: RAKCEC's debt to equity ratio has reduced from 75.4% to 57.3% over the past 5 years.

Debt Coverage: RAKCEC's debt is well covered by operating cash flow (45.7%).

Interest Coverage: RAKCEC's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

What is R.A.K. Ceramics P.J.S.C current dividend yield, its reliability and sustainability?

7.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAKCEC's dividend (7.22%) is higher than the bottom 25% of dividend payers in the AE market (2.86%).

High Dividend: RAKCEC's dividend (7.22%) is in the top 25% of dividend payers in the AE market (5.84%)


Stability and Growth of Payments

Stable Dividend: RAKCEC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RAKCEC's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (3726.6%), RAKCEC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAKCEC's dividends in 3 years are forecast to be covered by earnings (54.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

Abdallah Massaad

9.33yrs

Tenure

د.إ1,358,000

Compensation

Mr. Abdallah Massaad has been Group Chief Executive Officer of Ras Al Khaimah Ceramics PSC since June 4, 2012. He is Group Chief Executive Officer of RAK Ceramics PJSC since June 2012. Mr. Massaad served a...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Abdallah's total compensation is reasonable compared to companies of similar size in the AE market.

Compensation vs Earnings: Abdallah's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: RAKCEC's management team is seasoned and experienced (7.4 years average tenure).


Board Members

Experienced Board: RAKCEC's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

R.A.K. Ceramics P.J.S.C.'s employee growth, exchange listings and data sources


Key Information

  • Name: R.A.K. Ceramics P.J.S.C.
  • Ticker: RAKCEC
  • Exchange: ADX
  • Founded: 1989
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: د.إ2.733b
  • Shares outstanding: 993.70m
  • Website: https://www.rakceramics.com

Location

  • R.A.K. Ceramics P.J.S.C.
  • PO Box 4714
  • Al Jazeerah Al Hamra City
  • Ras al-Khaimah
  • United Arab Emirates

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 12:06
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.