Arabia Investments Holding (CASE:AIH) - Share price, News & Analysis

AIH fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

AIH Overview

Arabia Investments Holding engages in the construction and building materials, non-banking financial, and automotive businesses in Egypt.

Rewards

PE ratio (5.7x) is below the EG market (8.8x)

Earnings have grown 54.6% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Does not have a meaningful market cap (EGP529M)

Price History & Performance

Summary of all time highs, changes and price drops for Arabia Investments Holding
Historical stock prices
Current Share Price	ج.م0.38
52 Week High	ج.م0.36
52 Week Low	ج.م0.77
Beta	0.88
1 Month Change	-23.16%
3 Month Change	-20.89%
1 Year Change	-7.64%
3 Year Change	-40.10%
5 Year Change	-54.82%
Change since IPO	-63.94%

Shareholder Returns

	AIH	EG Capital Markets	EG Market
7D	-15.0%	-6.3%	3.0%
1Y	-7.6%	-6.0%	12.4%

Return vs Industry: AIH underperformed the EG Capital Markets industry which returned -3.2% over the past year.

Return vs Market: AIH underperformed the EG Market which returned 12.2% over the past year.

Price Volatility

Is AIH's price volatile compared to industry and market?
AIH volatility
AIH Beta	0.88
Industry Beta	0.83
Market Beta	1

Stable Share Price: AIH is not significantly more volatile than the rest of EG stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AIH's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	n/a	Hazem Mostafa	https://arabia-investments.com

Arabia Investments Holding engages in the construction and building materials, non-banking financial, and automotive businesses in Egypt. It provides concrete bricks, landscaping tiles, concrete-based tiles, and mobile bricks, as well as hardscape paving solutions. The company is also involved in SME leasing and factoring; and consumer financing business for automotive financing solutions.

Arabia Investments Holding Fundamentals Summary

How do Arabia Investments Holding's earnings and revenue compare to its market cap?
AIH fundamental statistics
Market Cap	ج.م528.82m
Earnings (TTM)	ج.م88.18m
Revenue (TTM)	ج.م1.73b

5.7x

P/E Ratio

0.3x

P/S Ratio

Is AIH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIH income statement (TTM)
Revenue	ج.م1.73b
Cost of Revenue	ج.م1.49b
Gross Profit	ج.م236.83m
Expenses	ج.م148.64m
Earnings	ج.م88.18m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.065
Gross Margin	13.72%
Net Profit Margin	5.11%
Debt/Equity Ratio	407.1%

How did AIH perform over the long term?

See historical performance and comparison

Valuation

Is Arabia Investments Holding undervalued compared to its fair value and its price relative to the market?

5.74x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: AIH (EGP0.38) is trading above our estimate of fair value (EGP0.23)

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

Price To Earnings Ratio

PE vs Industry: AIH is good value based on its PE Ratio (5.7x) compared to the African Capital Markets industry average (10.7x).

PE vs Market: AIH is good value based on its PE Ratio (5.7x) compared to the EG market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIH's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: AIH's PB Ratio (0.9x) is in line with the XF Capital Markets industry average.

Future Growth

How is Arabia Investments Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.2%

Forecasted Diversified Financials 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 Arabia Investments Holding 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.

Past Performance

How has Arabia Investments Holding performed over the past 5 years?

54.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AIH has high quality earnings.

Growing Profit Margin: AIH's current net profit margins (5.1%) are lower than last year (6.5%).

Past Earnings Growth Analysis

Earnings Trend: AIH has become profitable over the past 5 years, growing earnings by 54.6% per year.

Accelerating Growth: AIH's earnings growth over the past year (22.3%) is below its 5-year average (54.6% per year).

Earnings vs Industry: AIH earnings growth over the past year (22.3%) underperformed the Capital Markets industry 41.7%.

Return on Equity

High ROE: AIH's Return on Equity (15.2%) is considered low.

Financial Health

How is Arabia Investments Holding's financial position?

Financial Position Analysis

Short Term Liabilities: AIH's short term assets (EGP2.1B) exceed its short term liabilities (EGP1.8B).

Long Term Liabilities: AIH's short term assets (EGP2.1B) exceed its long term liabilities (EGP1.7B).

Debt to Equity History and Analysis

Debt Level: AIH's debt to equity ratio (407.1%) is considered high.

Reducing Debt: AIH's debt to equity ratio has increased from 101.9% to 407.1% over the past 5 years.

Debt Coverage: AIH's debt is not well covered by operating cash flow (5.1%).

Interest Coverage: AIH's interest payments on its debt are well covered by EBIT (7.3x coverage).

Balance Sheet

Dividend

What is Arabia Investments Holding current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

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

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

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

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AIH'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 Diversified Financials industry.

Management

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

1.8yrs

Average board tenure

CEO

Hazem Mostafa

0.42

Tenure

Mr. Hazem Mohamed Mostafa serves as Managing Director and Chief Executive Officer at Arabia Investments Holding since May 01, 2021. Mr. Mostafa has extensive experience in local and regional banks as he he...

Board Members

Experienced Board: AIH's board of directors are not considered experienced ( 1.8 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/10/25 16:48
End of Day Share Price	2021/10/25 00:00
Earnings	2021/03/31
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data