Aluminium Bahrain B.S.C (BAX:ALBH) - Share price, News & Analysis

ALBH fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	6/6
Financial Health	4/6
Dividends	5/6

ALBH Stock Overview

Aluminium Bahrain B.S.C. manufactures and sells aluminum and aluminum related products in the Kingdom of Bahrain, Europe, rest of the Middle East, North Africa, Asia, and the Americas.

Rewards

PE ratio (3.3x) is below the BH market (13.8x)

Earnings grew by 872.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 15.6% per year for the next 3 years

Highly volatile share price over the past 3 months

Has a high level of debt

Unstable dividend track record

Aluminium Bahrain B.S.C Competitors

Rio Tinto Group

LSE:RIO

UK£89.8b

Norsk Hydro

OB:NHY

kr149.7b

South32

ASX:S32

AU$21.7b

Hindalco Industries

BSE:500440

₹970.8b

Price History & Performance

Summary of all time highs, changes and price drops for Aluminium Bahrain B.S.C
Historical stock prices
Current Share Price	ب.د1.29
52 Week High	ب.د1.81
52 Week Low	ب.د0.63
Beta	0.27
1 Month Change	-16.51%
3 Month Change	4.71%
1 Year Change	100.31%
3 Year Change	207.14%
5 Year Change	204.25%
Change since IPO	40.98%

Shareholder Returns

	ALBH	BH Metals and Mining	BH Market
7D	1.6%	1.5%	-2.5%
1Y	100.3%	-3.5%	31.1%

Return vs Industry: ALBH exceeded the BH Metals and Mining industry which returned -3.8% over the past year.

Return vs Market: ALBH exceeded the BH Market which returned 30.1% over the past year.

Price Volatility

Is ALBH's price volatile compared to industry and market?
ALBH volatility
ALBH Average Weekly Movement	9.2%
Metals and Mining Industry Average Movement	6.9%
Market Average Movement	2.5%
10% most volatile stocks in BH Market	6.5%
10% least volatile stocks in BH Market	1.7%

Stable Share Price: ALBH is more volatile than 90% of BH stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ALBH's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of BH stocks.

About the Company

Founded	Employees	CEO	Website
1968	3,100	Ali Al Baqali	https://www.albasmelter.com

Aluminium Bahrain B.S.C. manufactures and sells aluminum and aluminum related products in the Kingdom of Bahrain, Europe, rest of the Middle East, North Africa, Asia, and the Americas. It owns and operates an aluminum smelter and related infrastructure. The company’s products include standard ingots, rolling slabs, foundry alloy ingots, extrusion billets, T-ingots, and liquid metal products.

Aluminium Bahrain B.S.C Fundamentals Summary

How do Aluminium Bahrain B.S.C's earnings and revenue compare to its market cap?
ALBH fundamental statistics
Market Cap	ب.د1.83b
Earnings (TTM)	ب.د546.49m
Revenue (TTM)	ب.د1.74b

3.3x

P/E Ratio

1.1x

P/S Ratio

Is ALBH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALBH income statement (TTM)
Revenue	ب.د1.74b
Cost of Revenue	ب.د1.06b
Gross Profit	ب.د674.56m
Other Expenses	ب.د128.07m
Earnings	ب.د546.49m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)	0.39
Gross Margin	38.83%
Net Profit Margin	31.46%
Debt/Equity Ratio	58.0%

How did ALBH perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

21%

Payout Ratio

Valuation

Is Aluminium Bahrain B.S.C undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

3.34x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: ALBH (BHD1.29) is trading above our estimate of fair value (BHD1.23)

Significantly Below Fair Value: ALBH is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: ALBH is good value based on its PE Ratio (3.3x) compared to the Asian Metals and Mining industry average (11.2x).

PE vs Market: ALBH is good value based on its PE Ratio (3.3x) compared to the BH market (13.8x).

Price to Earnings Growth Ratio

PEG Ratio: ALBH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: ALBH is good value based on its PB Ratio (1.2x) compared to the XA Metals and Mining industry average (1.3x).

Future Growth

How is Aluminium Bahrain B.S.C forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-15.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALBH's earnings are forecast to decline over the next 3 years (-15.6% per year).

Earnings vs Market: ALBH's earnings are forecast to decline over the next 3 years (-15.6% per year).

High Growth Earnings: ALBH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALBH's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: ALBH's revenue is forecast to decline over the next 3 years (-2.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ALBH's Return on Equity is forecast to be high in 3 years time (22.9%)

Past Performance

How has Aluminium Bahrain B.S.C performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

42.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALBH has high quality earnings.

Growing Profit Margin: ALBH's current net profit margins (31.5%) are higher than last year (5.2%).

Past Earnings Growth Analysis

Earnings Trend: ALBH's earnings have grown significantly by 42.8% per year over the past 5 years.

Accelerating Growth: ALBH's earnings growth over the past year (872.6%) exceeds its 5-year average (42.8% per year).

Earnings vs Industry: ALBH earnings growth over the past year (872.6%) exceeded the Metals and Mining industry 69.8%.

Return on Equity

High ROE: ALBH's Return on Equity (34.5%) is considered high.

Financial Health

How is Aluminium Bahrain B.S.C's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALBH's short term assets (BHD790.1M) exceed its short term liabilities (BHD402.8M).

Long Term Liabilities: ALBH's short term assets (BHD790.1M) exceed its long term liabilities (BHD702.4M).

Debt to Equity History and Analysis

Debt Level: ALBH's net debt to equity ratio (49.7%) is considered high.

Reducing Debt: ALBH's debt to equity ratio has increased from 15.4% to 58% over the past 5 years.

Debt Coverage: ALBH's debt is well covered by operating cash flow (45.2%).

Interest Coverage: ALBH's interest payments on its debt are well covered by EBIT (16.1x coverage).

Balance Sheet

Dividend

What is Aluminium Bahrain B.S.C current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ALBH's dividend (6.18%) is higher than the bottom 25% of dividend payers in the BH market (3.73%).

High Dividend: ALBH's dividend (6.18%) is in the top 25% of dividend payers in the BH market (5.6%)

Stability and Growth of Payments

Stable Dividend: ALBH's dividend payments have been volatile in the past 10 years.

Growing Dividend: ALBH's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.6%), ALBH's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.5%), ALBH's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

3.4yrs

Average management tenure

CEO

Ali Al Baqali

2.75yrs

Tenure

Mr. Ali Al Baqali serves as Chief Executive Officer of Aluminium Bahrain B.S.C. since February 13, 2020. Mr. Al Baqali served as Interim Chief Executive Officer of Aluminium Bahrain B.S.C. since August 1,...

Leadership Team

Experienced Management: ALBH's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: ALBH's board of directors are not considered experienced ( 2.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31