Aamal Company Q.P.S.C (DSM:AHCS) - Share price, News & Analysis

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

AHCS Stock Overview

Aamal Company Q.P.S.C., together with its subsidiaries, engages in the property, trading and distribution, industrial manufacturing, and managed services businesses in Qatar and internationally.

Rewards

Earnings are forecast to grow 9.33% per year

Risk Analysis

Dividend of 5.25% is not well covered by earnings or forecast to be in the next 3 years

Aamal Company Q.P.S.C Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aamal Company Q.P.S.C
Historical stock prices
Current Share Price	ر.ق0.95
52 Week High	ر.ق1.33
52 Week Low	ر.ق0.93
Beta	0.66
1 Month Change	-13.91%
3 Month Change	-24.96%
1 Year Change	-4.03%
3 Year Change	20.48%
5 Year Change	-15.74%
Change since IPO	-4.90%

Recent News & Updates

Mar 26

Aamal Company Q.P.S.C's (DSM:AHCS) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of Aamal Company Q.P.S.C. ( DSM:AHCS ) has announced that it will be increasing its dividend on the 1st of...

Shareholder Returns

	AHCS	QA Industrials	QA Market
7D	-12.5%	-12.6%	-6.5%
1Y	-4.0%	18.0%	5.1%

Return vs Industry: AHCS underperformed the QA Industrials industry which returned 17.6% over the past year.

Return vs Market: AHCS underperformed the QA Market which returned 5.1% over the past year.

Price Volatility

Is AHCS's price volatile compared to industry and market?
AHCS volatility
AHCS Average Weekly Movement	4.0%
Industrials Industry Average Movement	4.9%
Market Average Movement	4.0%
10% most volatile stocks in QA Market	6.0%
10% least volatile stocks in QA Market	2.7%

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

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

About the Company

Founded	Employees	CEO	Website
1964	n/a	Rashid Al-Mansoori	https://www.aamal.com.qa

Aamal Company Q.P.S.C., together with its subsidiaries, engages in the property, trading and distribution, industrial manufacturing, and managed services businesses in Qatar and internationally. The company’s Property segment is involved in leasing the facilities of retail outlet complex, real estate investments, and property rental businesses. Its Trading and Distribution segment engages in wholesale and/or retail distribution of pharmaceutical and consumable items, home appliances, medical equipment, tires, lubricants, batteries, car spare parts, and office supplies products.

Aamal Company Q.P.S.C Fundamentals Summary

How do Aamal Company Q.P.S.C's earnings and revenue compare to its market cap?
AHCS fundamental statistics
Market Cap	ر.ق6.00b
Earnings (TTM)	ر.ق310.64m
Revenue (TTM)	ر.ق1.73b

19.3x

P/E Ratio

3.5x

P/S Ratio

Is AHCS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AHCS income statement (TTM)
Revenue	ر.ق1.73b
Cost of Revenue	ر.ق1.30b
Gross Profit	ر.ق433.07m
Other Expenses	ر.ق122.43m
Earnings	ر.ق310.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.049
Gross Margin	24.96%
Net Profit Margin	17.90%
Debt/Equity Ratio	5.7%

How did AHCS perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

101%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AHCS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AHCS. This is calculated by dividing AHCS's market cap by their current preferred multiple.
What is AHCS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.ق6.00b

AHCS 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	3.7x
Enterprise Value/EBITDA	19.2x
PEG Ratio	2.1x

Price to Earnings Ratio vs Peers

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

AHCS PE Ratio vs Peers

The above table shows the PE ratio for AHCS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.8x

Forward PE

Price-To-Earnings vs Peers: AHCS is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (11.8x).

Price to Earnings Ratio vs Industry

How does AHCS's PE Ratio compare vs other companies in the Industrials Industry?

Price-To-Earnings vs Industry: AHCS is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the QA Industrials industry average (13.4x)

Price to Earnings Ratio vs Fair Ratio

What is AHCS'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.

AHCS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.3x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: AHCS (QAR0.95) is trading above our estimate of fair value (QAR0.8)

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

Price to Earnings Growth Ratio

PEG Ratio: AHCS is poor value based on its PEG Ratio (2.1x)

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Future Growth

How is Aamal Company Q.P.S.C forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

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

9.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHCS's forecast earnings growth (9.3% per year) is above the savings rate (9%).

Earnings vs Market: AHCS's earnings (9.3% per year) are forecast to grow faster than the QA market (7.2% per year).

High Growth Earnings: AHCS's earnings are forecast to grow, but not significantly.

Revenue vs Market: AHCS's revenue (13.7% per year) is forecast to grow faster than the QA market (3.9% per year).

High Growth Revenue: AHCS's revenue (13.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AHCS's Return on Equity is forecast to be low in 3 years time (4.7%).

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Past Performance

How has Aamal Company Q.P.S.C 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

-19.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AHCS has high quality earnings.

Growing Profit Margin: AHCS's current net profit margins (17.9%) are higher than last year (8.7%).

Past Earnings Growth Analysis

Earnings Trend: AHCS's earnings have declined by 19.5% per year over the past 5 years.

Accelerating Growth: AHCS's earnings growth over the past year (185.8%) exceeds its 5-year average (-19.5% per year).

Earnings vs Industry: AHCS earnings growth over the past year (185.8%) underperformed the Industrials industry 185.8%.

Return on Equity

High ROE: AHCS's Return on Equity (4.2%) is considered low.

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Financial Health

How is Aamal Company Q.P.S.C's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: AHCS's short term assets (QAR1.1B) exceed its short term liabilities (QAR810.8M).

Long Term Liabilities: AHCS's short term assets (QAR1.1B) exceed its long term liabilities (QAR370.4M).

Debt to Equity History and Analysis

Debt Level: AHCS's net debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: AHCS's debt to equity ratio has reduced from 7.4% to 5.7% over the past 5 years.

Debt Coverage: AHCS's debt is well covered by operating cash flow (62.4%).

Interest Coverage: AHCS's interest payments on its debt are well covered by EBIT (15x coverage).

Balance Sheet

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Dividend

What is Aamal Company Q.P.S.C current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

5.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AHCS's dividend (5.25%) is higher than the bottom 25% of dividend payers in the QA market (3.22%).

High Dividend: AHCS's dividend (5.25%) is in the top 25% of dividend payers in the QA market (4.75%)

Stability and Growth of Payments

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

Growing Dividend: AHCS has only been paying a dividend for 7 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (101.2%), AHCS's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (125.5%), AHCS'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?

2.3yrs

Average management tenure

CEO

Rashid Al-Mansoori

no data

Tenure

Mr. Rashid Ali Al-Mansoori is Chief Executive Officer of Aamal Company Q.P.S.C. from June 2022. He has worked extensively in both commercial and government organisations and his considerable experience wil...

Leadership Team

Experienced Management: AHCS's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: AHCS's board of directors are considered experienced (5.3 years average tenure).

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	2022/06/24 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31