| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 0/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | د.إ1.24 |
| 52 Week High | د.إ1.84 |
| 52 Week Low | د.إ1.14 |
| Beta | 1.3 |
| 1 Month Change | 3.33% |
| 3 Month Change | -14.48% |
| 1 Year Change | -6.06% |
| 3 Year Change | 158.87% |
| 5 Year Change | 82.35% |
| Change since IPO | -25.30% |
Recent News & Updates
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
| EMSTEEL | AE Basic Materials | AE Market | |
|---|---|---|---|
| 7D | 4.2% | 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
| EMSTEEL volatility | |
|---|---|
| EMSTEEL Average Weekly Movement | 6.1% |
| Basic Materials Industry Average Movement | 7.2% |
| Market Average Movement | 5.1% |
| 10% most volatile stocks in AE Market | 8.7% |
| 10% least volatile stocks in AE Market | 2.7% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2005 | n/a | Saeed Ghumran Saeed Alremeithi | https://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
| EMSTEEL fundamental statistics | |
|---|---|
| Market Cap | د.إ8.49b |
| Earnings (TTM) | -د.إ441.53m |
| Revenue (TTM) | د.إ7.22b |
1.2x
P/S Ratio-19.2x
P/E RatioIs EMSTEEL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EMSTEEL income statement (TTM) | |
|---|---|
| Revenue | د.إ7.22b |
| Cost of Revenue | د.إ6.48b |
| Gross Profit | د.إ736.61m |
| Other Expenses | د.إ1.18b |
| Earnings | -د.إ441.53m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.064 |
| Gross Margin | 10.21% |
| Net Profit Margin | -6.12% |
| Debt/Equity Ratio | 29.9% |
How did EMSTEEL perform over the long term?
See historical performance and comparisonValuation
Is EMSTEEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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.
| What is EMSTEEL's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | د.إ8.49b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.5x |
| Enterprise Value/EBITDA | 13.7x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does EMSTEEL's PS Ratio compare to its peers?
| EMSTEEL PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 11.3x | ||
APEX APEX Investment Company P.S.C | 33.5x | n/a | د.إ17.8b |
RAKWCT Ras Al Khaimah for White Cement & Construction Materials P.S.C | 4.3x | n/a | د.إ1.0b |
NCC National Cement Company (Public Shareholding) | 5.7x | n/a | د.إ803.7m |
FBI Fujairah Building Industries P.J.S.C | 1.7x | n/a | د.إ296.5m |
EMSTEEL Arkan Building Materials Company (ARKAN) PJSC | 1.2x | n/a | د.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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 1.2x |
| Fair PS Ratio | n/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.
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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
0/6Future 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.
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- 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
0/6Past 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.
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Financial Health
How is Arkan Building Materials Company (ARKAN) PJSC's financial position?
Financial Health Score
6/6Financial 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.
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Dividend
What is Arkan Building Materials Company (ARKAN) PJSC current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend 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.
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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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/07 00:00 |
| End of Day Share Price | 2022/08/05 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.