Oman Investment & Finance SAOG (MSM:OIFC) - Share price, News & Analysis

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

OIFC (OMR0.13) is trading above our estimate of [[fair value]] (OMR0.06)

OIFC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	1/6
Dividends	3/6

OIFC Stock Overview

Rewards

Price-To-Earnings ratio (9.8x) is below the OM market (12.2x)

Earnings grew by 64% over the past year

Risk Analysis

Earnings have declined by 3.6% per year over past 5 years

Interest payments are not well covered by earnings

Dividend of 6.02% is not well covered by earnings

Does not have a meaningful market cap (OMR32M)

Oman Investment & Finance SAOG Competitors

Al Jazeira Services Company SAOG

MSM:AJSS

ر.ع45.7m

Ojai Oil

OTCPK:OJOC

US$73.7m

Superior Plating Technology

TPEX:8431

NT$2.4b

Catering International & Services Société Anonyme

ENXTPA:CTRG

€73.8m

Price History & Performance

Summary of all time highs, changes and price drops for Oman Investment & Finance SAOG
Historical stock prices
Current Share Price	ر.ع0.13
52 Week High	ر.ع0.17
52 Week Low	ر.ع0.12
Beta	0.28
1 Month Change	6.40%
3 Month Change	-10.14%
1 Year Change	4.72%
3 Year Change	12.71%
5 Year Change	-14.74%
Change since IPO	34.68%

Shareholder Returns

	OIFC	OM Commercial Services	OM Market
7D	-1.5%	0.6%	2.0%
1Y	4.7%	-8.1%	15.2%

Return vs Industry: OIFC exceeded the OM Commercial Services industry which returned -6.6% over the past year.

Return vs Market: OIFC underperformed the OM Market which returned 14.9% over the past year.

Price Volatility

Is OIFC's price volatile compared to industry and market?
OIFC volatility
OIFC Average Weekly Movement	4.1%
Commercial Services Industry Average Movement	5.3%
Market Average Movement	3.7%
10% most volatile stocks in OM Market	6.5%
10% least volatile stocks in OM Market	1.8%

Stable Share Price: OIFC is not significantly more volatile than the rest of OM stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OIFC's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	868	Said Bin Ahmed Safrar	https://www.oifcoman.com

Oman Investment & Finance Co. SAOG, an investment and services company, provides billing, collection, and debt factoring services for the electricity, water, and telecom services in the Sultanate of Oman and other GCC countries. The company invests in real estate, equity securities, and other investments; and offers meter reading, bill printing, bill delivery, disconnection/reconnection, and bill collection services for electricity, water, telecommunication, and other sectors. It also supplies AMR smart meters and communication devices, as well as manages prepaid meter systems and vending solutions; provides debt purchase and recovery services; and offers prepaid recharge services, as well as collection and re-charge services for various e-platforms in the entertainment and fintech industry.

Oman Investment & Finance SAOG Fundamentals Summary

How do Oman Investment & Finance SAOG's earnings and revenue compare to its market cap?
OIFC fundamental statistics
Market Cap	ر.ع31.52m
Earnings (TTM)	ر.ع3.23m
Revenue (TTM)	ر.ع18.73m

9.8x

P/E Ratio

1.7x

P/S Ratio

Is OIFC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OIFC income statement (TTM)
Revenue	ر.ع18.73m
Cost of Revenue	ر.ع15.18m
Gross Profit	ر.ع3.55m
Other Expenses	ر.ع315.13k
Earnings	ر.ع3.23m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.014
Gross Margin	18.95%
Net Profit Margin	17.26%
Debt/Equity Ratio	216.0%

How did OIFC perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

59%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 OIFC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for OIFC. This is calculated by dividing OIFC's market cap by their current preferred multiple.
What is OIFC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.ع31.52m

OIFC 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/Revenue	4.7x
Enterprise Value/EBITDA	50.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does OIFC's PE Ratio compare to its peers?

OIFC PE Ratio vs Peers

The above table shows the PE ratio for OIFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.8x
AJSS Al Jazeira Services Company SAOG	11.7x	n/a	ر.ع45.7m
OJOC Ojai Oil	32.1x	n/a	US$73.7m
8431 Superior Plating Technology	16.5x	n/a	NT$2.4b
CTRG Catering International & Services Société Anonyme	14.5x	10.7%	€73.8m
OIFC Oman Investment & Finance SAOG	9.8x	n/a	ر.ع31.5m

Price-To-Earnings vs Peers: OIFC is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

How does OIFC's PE Ratio compare vs other companies in the Asian Commercial Services Industry?

Price-To-Earnings vs Industry: OIFC is good value based on its Price-To-Earnings Ratio (9.8x) compared to the Asian Commercial Services industry average (16.8x)

Price to Earnings Ratio vs Fair Ratio

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

OIFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: OIFC (OMR0.13) is trading above our estimate of fair value (OMR0.06)

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

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 Oman Investment & Finance SAOG 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

15.3%

Forecasted Commercial Services 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 Oman Investment & Finance SAOG 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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Check out Oman Investment & Finance SAOG's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Oman Investment & Finance SAOG performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-3.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OIFC has high quality earnings.

Growing Profit Margin: OIFC's current net profit margins (17.3%) are higher than last year (10.9%).

Past Earnings Growth Analysis

Earnings Trend: OIFC's earnings have declined by 3.6% per year over the past 5 years.

Accelerating Growth: OIFC's earnings growth over the past year (64%) exceeds its 5-year average (-3.6% per year).

Earnings vs Industry: OIFC earnings growth over the past year (64%) exceeded the Commercial Services industry 8.6%.

Return on Equity

High ROE: OIFC's Return on Equity (11.6%) is considered low.

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Financial Health

How is Oman Investment & Finance SAOG's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

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

Financial Position Analysis

Short Term Liabilities: OIFC's short term assets (OMR31.2M) do not cover its short term liabilities (OMR66.0M).

Long Term Liabilities: OIFC's short term assets (OMR31.2M) exceed its long term liabilities (OMR25.1M).

Debt to Equity History and Analysis

Debt Level: OIFC's net debt to equity ratio (200%) is considered high.

Reducing Debt: OIFC's debt to equity ratio has increased from 137.3% to 216% over the past 5 years.

Debt Coverage: OIFC's debt is not well covered by operating cash flow (2.2%).

Interest Coverage: OIFC's interest payments on its debt are not well covered by EBIT (0.3x coverage).

Balance Sheet

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Dividend

What is Oman Investment & Finance SAOG current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

6.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OIFC's dividend (6.02%) is higher than the bottom 25% of dividend payers in the OM market (3.81%).

High Dividend: OIFC's dividend (6.02%) is low compared to the top 25% of dividend payers in the OM market (9.93%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (58.6%), OIFC's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (819.1%), OIFC's dividend payments are not well covered by cash flows.

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Management

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

3.0yrs

Average management tenure

CEO

Said Bin Ahmed Safrar

8yrs

Tenure

ر.ع2,700

Compensation

Mr. Said Bin Ahmed Safrar has been the Chief Executive Officer of Oman Investment & Finance Company SAOG since August 20, 2014. Mr. Bin Ahmed Safrar served as the Chief Customer Experience Officer at Omani...

Leadership Team

Experienced Management: OIFC's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: OIFC's board of directors are not considered experienced ( 2.2 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	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31