company background image
EMST

Arkan Building Materials Company (ARKAN) PJSC ADX:EMSTEEL Stock Report

Last Price

د.إ1.24

Market Cap

د.إ8.5b

7D

4.2%

1Y

-6.1%

Updated

07 Aug, 2022

Data

Company Financials
EMSTEEL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

EMSTEEL Stock Overview

Arkan Building Materials Company (ARKAN) PJSC engages in the manufacture and sale of building and construction products in the United Arab Emirates.

Arkan Building Materials Company (ARKAN) PJSC Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Arkan Building Materials Company (ARKAN) PJSC
Historical stock prices
Current Share Priceد.إ1.24
52 Week Highد.إ1.84
52 Week Lowد.إ1.14
Beta1.3
1 Month Change3.33%
3 Month Change-14.48%
1 Year Change-6.06%
3 Year Change158.87%
5 Year Change82.35%
Change since IPO-25.30%

Recent News & Updates

Jul 12
Arkan Building Materials Company (ARKAN) PJSC (ADX:EMSTEEL) Might Be Having Difficulty Using Its Capital Effectively

Arkan Building Materials Company (ARKAN) PJSC (ADX:EMSTEEL) Might Be Having Difficulty Using Its Capital Effectively

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

EMSTEELAE Basic MaterialsAE Market
7D4.2%1.7%2.2%
1Y-6.1%25.9%28.3%

Return vs Industry: EMSTEEL underperformed the AE Basic Materials industry which returned 27.8% over the past year.

Return vs Market: EMSTEEL underperformed the AE Market which returned 29.6% over the past year.

Price Volatility

Is EMSTEEL's price volatile compared to industry and market?
EMSTEEL volatility
EMSTEEL Average Weekly Movement6.1%
Basic Materials Industry Average Movement7.2%
Market Average Movement5.1%
10% most volatile stocks in AE Market8.7%
10% least volatile stocks in AE Market2.7%

Stable Share Price: EMSTEEL is not significantly more volatile than the rest of AE stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EMSTEEL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aSaeed Ghumran Saeed Alremeithihttps://www.arkan.ae

Arkan Building Materials Company (ARKAN) PJSC engages in the manufacture and sale of building and construction products in the United Arab Emirates. The company offers steel products, including rebar, wire rods, rebar in coils, sheet piles, and steel billets; and ordinary Portland cement, high sulfate resistant cement, moderate sulfate resistant cement, Portland limestone cement, clinker, and slag. In addition, it provides various concrete products; centrifugally cast and glass fiber reinforced polyester pipes; and multi-wall kraft paper and plastic bags for storing building materials.

Arkan Building Materials Company (ARKAN) PJSC Fundamentals Summary

How do Arkan Building Materials Company (ARKAN) PJSC's earnings and revenue compare to its market cap?
EMSTEEL fundamental statistics
Market Capد.إ8.49b
Earnings (TTM)-د.إ441.53m
Revenue (TTM)د.إ7.22b

1.2x

P/S Ratio

-19.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMSTEEL income statement (TTM)
Revenueد.إ7.22b
Cost of Revenueد.إ6.48b
Gross Profitد.إ736.61m
Other Expensesد.إ1.18b
Earnings-د.إ441.53m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.064
Gross Margin10.21%
Net Profit Margin-6.12%
Debt/Equity Ratio29.9%

How did EMSTEEL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is EMSTEEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMSTEEL?

Other financial metrics that can be useful for relative valuation.

EMSTEEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA13.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does EMSTEEL's PS Ratio compare to its peers?

EMSTEEL PS Ratio vs Peers
The above table shows the PS ratio for EMSTEEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average11.3x
APEX APEX Investment Company P.S.C
33.5xn/aد.إ17.8b
RAKWCT Ras Al Khaimah for White Cement & Construction Materials P.S.C
4.3xn/aد.إ1.0b
NCC National Cement Company (Public Shareholding)
5.7xn/aد.إ803.7m
FBI Fujairah Building Industries P.J.S.C
1.7xn/aد.إ296.5m
EMSTEEL Arkan Building Materials Company (ARKAN) PJSC
1.2xn/aد.إ8.5b

Price-To-Sales vs Peers: EMSTEEL is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (11.3x).


Price to Earnings Ratio vs Industry

How does EMSTEEL's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

Price-To-Sales vs Industry: EMSTEEL is good value based on its Price-To-Sales Ratio (1.2x) compared to the AE Basic Materials industry average (1.7x)


Price to Sales Ratio vs Fair Ratio

What is EMSTEEL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EMSTEEL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate EMSTEEL's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of EMSTEEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMSTEEL (AED1.24) is trading below our estimate of fair value (AED38.34)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

How is Arkan Building Materials Company (ARKAN) PJSC forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.6%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arkan Building Materials Company (ARKAN) PJSC has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Arkan Building Materials Company (ARKAN) PJSC is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Arkan Building Materials Company (ARKAN) PJSC performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-67.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EMSTEEL is currently unprofitable.

Growing Profit Margin: EMSTEEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EMSTEEL is unprofitable, and losses have increased over the past 5 years at a rate of 67.2% per year.

Accelerating Growth: Unable to compare EMSTEEL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EMSTEEL is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (-4.8%).


Return on Equity

High ROE: EMSTEEL has a negative Return on Equity (-5.92%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Arkan Building Materials Company (ARKAN) PJSC's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: EMSTEEL's short term assets (AED4.5B) exceed its short term liabilities (AED3.8B).

Long Term Liabilities: EMSTEEL's short term assets (AED4.5B) exceed its long term liabilities (AED905.4M).


Debt to Equity History and Analysis

Debt Level: EMSTEEL's net debt to equity ratio (20.9%) is considered satisfactory.

Reducing Debt: EMSTEEL's debt to equity ratio has reduced from 65.2% to 29.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable EMSTEEL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EMSTEEL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 33.5% per year.


Discover healthy companies

Dividend

What is Arkan Building Materials Company (ARKAN) PJSC current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate EMSTEEL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EMSTEEL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EMSTEEL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EMSTEEL's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: EMSTEEL is not paying a notable dividend for the AE market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EMSTEEL has not reported any payouts.


Discover strong dividend paying companies

Management

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

0.8yrs

Average board tenure


CEO

Saeed Ghumran Saeed Alremeithi

0.75

Tenure

H.E. Saeed Ghumran Saeed Salem Alremeithi has been a Director of Arkan Building Materials Company (ARKAN) PJSC since November 04, 2021 and its Group Chief Executive Officer since November 11, 2021.


Board Members

Experienced Board: EMSTEEL's board of directors are not considered experienced ( 0.8 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 been substantially diluted in the past year, with total shares outstanding growing by 291.4%.


Top Shareholders

Company Information

Arkan Building Materials Company (ARKAN) PJSC's employee growth, exchange listings and data sources


Key Information

  • Name: Arkan Building Materials Company (ARKAN) PJSC
  • Ticker: EMSTEEL
  • Exchange: ADX
  • Founded: 2005
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: د.إ8.494b
  • Shares outstanding: 6.85b
  • Website: https://www.arkan.ae

Location

  • Arkan Building Materials Company (ARKAN) PJSC
  • Prestige Tower
  • 17th Floor
  • Abu Dhabi
  • 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 Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.