Oriental Weavers Carpets Company (S.A.E) (CASE:ORWE) - Share price, News & Analysis

ORWE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

ORWE Stock Overview

Oriental Weavers Carpets Company (S.A.E), together with its subsidiaries, manufactures and sells carpets, rugs, and related raw materials worldwide.

Rewards

Trading at 4% below our estimate of its fair value

Risk Analysis

Earnings are forecast to decline by an average of 2.5% per year for the next 3 years

Oriental Weavers Carpets Company (S.A.E) Competitors

Balta Group

ENXTBR:BALTA

€136.9m

Price History & Performance

Summary of all time highs, changes and price drops for Oriental Weavers Carpets Company (S.A.E)
Historical stock prices
Current Share Price	ج.م8.60
52 Week High	ج.م9.42
52 Week Low	ج.م5.78
Beta	0.50
1 Month Change	3.12%
3 Month Change	2.38%
1 Year Change	18.29%
3 Year Change	22.74%
5 Year Change	-23.98%
Change since IPO	302.77%

Shareholder Returns

	ORWE	EG Consumer Durables	EG Market
7D	-0.6%	-0.4%	-1.5%
1Y	18.3%	19.7%	-0.05%

Return vs Industry: ORWE underperformed the EG Consumer Durables industry which returned 20.9% over the past year.

Return vs Market: ORWE exceeded the EG Market which returned 0.5% over the past year.

Price Volatility

Is ORWE's price volatile compared to industry and market?
ORWE volatility
ORWE Average Weekly Movement	2.4%
Consumer Durables Industry Average Movement	5.4%
Market Average Movement	5.7%
10% most volatile stocks in EG Market	10.9%
10% least volatile stocks in EG Market	2.9%

Stable Share Price: ORWE is less volatile than 75% of EG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ORWE's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	n/a	Salah Abdel Aziz Motalab	https://www.orientalweavers.com

Oriental Weavers Carpets Company (S.A.E), together with its subsidiaries, manufactures and sells carpets, rugs, and related raw materials worldwide. The company offers machine woven and non-woven carpets; door and kitchen rugs, rubber-backed bathroom mats, multilevel textured mats for outdoor applications, car mats, children’s rugs and mats, scatter rugs, and club rugs; and three-dimensional advertising floor panels, and runners and artificial turf for indoor and outdoor applications. It also provides wall-to-wall carpets; indoor/outdoor rugs; patterned, printed, engraved, and embossed mats; underlay rolls and rug pads; car mats; and bath mats, as well as handmade rugs.

Oriental Weavers Carpets Company (S.A.E) Fundamentals Summary

How do Oriental Weavers Carpets Company (S.A.E)'s earnings and revenue compare to its market cap?
ORWE fundamental statistics
Market Cap	ج.م5.72b
Earnings (TTM)	ج.م723.77m
Revenue (TTM)	ج.م11.22b

7.9x

P/E Ratio

0.5x

P/S Ratio

Is ORWE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORWE income statement (TTM)
Revenue	ج.م11.22b
Cost of Revenue	ج.م9.33b
Gross Profit	ج.م1.89b
Expenses	ج.م1.17b
Earnings	ج.م723.77m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.09
Gross Margin	16.85%
Net Profit Margin	6.45%
Debt/Equity Ratio	44.6%

How did ORWE perform over the long term?

See historical performance and comparison

Valuation

Is Oriental Weavers Carpets Company (S.A.E) undervalued compared to its fair value and its price relative to the market?

4.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ORWE (EGP8.6) is trading below our estimate of fair value (EGP8.96)

Significantly Below Fair Value: ORWE is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: ORWE is good value based on its PE Ratio (7.9x) compared to the Global Consumer Durables industry average (14.2x).

PE vs Market: ORWE is good value based on its PE Ratio (7.9x) compared to the EG market (11.3x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: ORWE is good value based on its PB Ratio (0.8x) compared to the XF Consumer Durables industry average (2.2x).

Future Growth

How is Oriental Weavers Carpets Company (S.A.E) forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-2.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORWE's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: ORWE's earnings are forecast to decline over the next 3 years (-2.5% per year).

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

Revenue vs Market: ORWE's revenue (8.1% per year) is forecast to grow slower than the EG market (11.7% per year).

High Growth Revenue: ORWE's revenue (8.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ORWE's Return on Equity is forecast to be low in 3 years time (15.9%).

Past Performance

How has Oriental Weavers Carpets Company (S.A.E) performed over the past 5 years?

3.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORWE has high quality earnings.

Growing Profit Margin: ORWE's current net profit margins (6.5%) are lower than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: ORWE's earnings have grown by 3% per year over the past 5 years.

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

Earnings vs Industry: ORWE had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Consumer Durables industry average (38.4%).

Return on Equity

High ROE: ORWE's Return on Equity (18.3%) is considered low.

Financial Health

How is Oriental Weavers Carpets Company (S.A.E)'s financial position?

Financial Position Analysis

Short Term Liabilities: ORWE's short term assets (EGP8.7B) exceed its short term liabilities (EGP5.0B).

Long Term Liabilities: ORWE's short term assets (EGP8.7B) exceed its long term liabilities (EGP683.0M).

Debt to Equity History and Analysis

Debt Level: ORWE's net debt to equity ratio (15.7%) is considered satisfactory.

Reducing Debt: ORWE's debt to equity ratio has increased from 29.7% to 44.6% over the past 5 years.

Debt Coverage: ORWE's debt is well covered by operating cash flow (30.6%).

Interest Coverage: ORWE earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Oriental Weavers Carpets Company (S.A.E) current dividend yield, its reliability and sustainability?

12.35%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ORWE'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 ORWE's dividends per share have been stable in the past.

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

Current Payout to Shareholders

Dividend Coverage: ORWE is not paying a notable dividend for the EG market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ORWE's dividend in 3 years as they are not forecast to pay a notable one for the EG market.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

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

2.7yrs

Average board tenure

CEO

Salah Abdel Aziz Motalab

no data

Tenure

Mr. Salah Abdel Aziz Abdel Motalab serves as Executive Managing Director at Oriental Weavers Carpets Company (S.A.E) since October 2020 and serves its Executive Director. He serves as the Chief Executive O...

Board Members

Experienced Board: ORWE's board of directors are not considered experienced ( 2.7 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	2022/01/20 15:54
End of Day Share Price	2022/01/20 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31