Bestway Cement (KASE:BWCL) - Share price, News & Analysis

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

BWCL Stock Overview

Bestway Cement Limited produces and sells cement in Pakistan.

Risk Analysis

Earnings have declined by 10.2% per year over past 5 years

High level of non-cash earnings

Dividend of 11.99% is not well covered by earnings

Bestway Cement Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Bestway Cement
Historical stock prices
Current Share Price	PK₨133.50
52 Week High	PK₨175.45
52 Week Low	PK₨127.49
Beta	0.54
1 Month Change	-7.13%
3 Month Change	-9.18%
1 Year Change	-14.72%
3 Year Change	22.48%
5 Year Change	-48.05%
Change since IPO	1,694.83%

Shareholder Returns

	BWCL	PK Basic Materials	PK Market
7D	-0.8%	-3.1%	-0.5%
1Y	-14.7%	-40.7%	-13.6%

Return vs Industry: BWCL exceeded the PK Basic Materials industry which returned -38.1% over the past year.

Return vs Market: BWCL underperformed the PK Market which returned -12.1% over the past year.

Price Volatility

Is BWCL's price volatile compared to industry and market?
BWCL volatility
BWCL Average Weekly Movement	3.0%
Basic Materials Industry Average Movement	6.1%
Market Average Movement	5.7%
10% most volatile stocks in PK Market	8.9%
10% least volatile stocks in PK Market	3.4%

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

Volatility Over Time: BWCL's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	1,537	Zameer Choudrey	https://www.bestway.com.pk

Bestway Cement Limited produces and sells cement in Pakistan. The company offers ordinary Portland, all purpose, early setting, sulphate resistant, and low alkali and low heat cements, as well as clinker. It also exports its products to Afghanistan and India.

Bestway Cement Fundamentals Summary

How do Bestway Cement's earnings and revenue compare to its market cap?
BWCL fundamental statistics
Market Cap	PK₨79.60b
Earnings (TTM)	PK₨13.67b
Revenue (TTM)	PK₨66.27b

5.8x

P/E Ratio

1.2x

P/S Ratio

Is BWCL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BWCL income statement (TTM)
Revenue	PK₨66.27b
Cost of Revenue	PK₨45.45b
Gross Profit	PK₨20.82b
Other Expenses	PK₨7.15b
Earnings	PK₨13.67b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	22.92
Gross Margin	31.42%
Net Profit Margin	20.62%
Debt/Equity Ratio	42.5%

How did BWCL perform over the long term?

See historical performance and comparison

Dividends

12.0%

Current Dividend Yield

70%

Payout Ratio

Valuation

Is Bestway Cement undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

5.82x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: BWCL (PKR133.5) is trading above our estimate of fair value (PKR120.28)

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

Price To Earnings Ratio

PE vs Industry: BWCL's PE Ratio (5.8x) is in line with the PK Basic Materials industry average.

PE vs Market: BWCL is poor value based on its PE Ratio (5.8x) compared to the PK market (5.7x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: BWCL is overvalued based on its PB Ratio (1.3x) compared to the PK Basic Materials industry average (0.8x).

Future Growth

How is Bestway Cement 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

19.1%

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 Bestway Cement 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 Bestway Cement performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

-10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BWCL has a high level of non-cash earnings.

Growing Profit Margin: BWCL's current net profit margins (20.6%) are higher than last year (16.6%).

Past Earnings Growth Analysis

Earnings Trend: BWCL's earnings have declined by 10.2% per year over the past 5 years.

Accelerating Growth: BWCL's earnings growth over the past year (63.8%) exceeds its 5-year average (-10.2% per year).

Earnings vs Industry: BWCL earnings growth over the past year (63.8%) underperformed the Basic Materials industry 66.4%.

Return on Equity

High ROE: BWCL's Return on Equity (21.6%) is considered high.

Financial Health

How is Bestway Cement's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: BWCL's short term assets (PKR23.3B) do not cover its short term liabilities (PKR27.8B).

Long Term Liabilities: BWCL's short term assets (PKR23.3B) do not cover its long term liabilities (PKR29.2B).

Debt to Equity History and Analysis

Debt Level: BWCL's net debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: BWCL's debt to equity ratio has increased from 25.5% to 42.5% over the past 5 years.

Debt Coverage: BWCL's debt is well covered by operating cash flow (55.8%).

Interest Coverage: BWCL's interest payments on its debt are well covered by EBIT (17.9x coverage).

Balance Sheet

Dividend

What is Bestway Cement 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
Future Dividend Coverage

11.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BWCL's dividend (11.99%) is higher than the bottom 25% of dividend payers in the PK market (3.71%).

High Dividend: BWCL's dividend (11.99%) is in the top 25% of dividend payers in the PK market (10.85%)

Stability and Growth of Payments

Stable Dividend: BWCL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BWCL's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (69.8%), BWCL's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: BWCL is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

0.9yrs

Average management tenure

CEO

Zameer Choudrey

no data

Tenure

PK₨18,000,000

Compensation

Lord Zameer Mohammed Choudrey, CBE, SI PK, FCA has been the Chief Executive and Executive Director of Pakcem Limited (formerly Lafarge Pakistan Cement Limited) since April 22, 2015. Mr. Choudrey serves as...

Leadership Team

Experienced Management: BWCL's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.

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	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30