Qatar National Cement Company (Q.P.S.C.) (DSM:QNCD) - Share price, News & Analysis

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

QNCD (QAR5.01) is trading below our estimate of [[fair value]] (QAR21.89)

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

QNCD Stock Overview

Qatar National Cement Company (Q.P.S.C.) manufactures and sells cement, washed sand, and other by-products in Qatar.

Rewards

Trading at 77.1% below our estimate of its fair value

Earnings grew by 40.8% over the past year

Risk Analysis

Earnings have declined by 18.6% per year over past 5 years

Unstable dividend track record

Qatar National Cement Company (Q.P.S.C.) Competitors

Qatari Investors Group Q.S.C

DSM:QIGD

ر.ق2.5b

Qatar Aluminium Manufacturing Company Q.P.S.C

DSM:QAMC

ر.ق9.1b

Solusi Bangun Indonesia

IDX:SMCB

Rp14.0t

Guangdong Sanhe Pile

SZSE:003037

CN¥6.0b

Price History & Performance

Summary of all time highs, changes and price drops for Qatar National Cement Company (Q.P.S.C.)
Historical stock prices
Current Share Price	ر.ق5.01
52 Week High	ر.ق6.77
52 Week Low	ر.ق4.88
Beta	0.63
1 Month Change	0.16%
3 Month Change	-2.98%
1 Year Change	-0.56%
3 Year Change	-22.31%
5 Year Change	-25.21%
Change since IPO	258.23%

Recent News & Updates

Feb 03

Qatar National Cement Company (Q.P.S.C.) (DSM:QNCD) Will Pay A Larger Dividend Than Last Year At ر.ق0.30

The board of Qatar National Cement Company (Q.P.S.C.) ( DSM:QNCD ) has announced that it will be increasing its...

Shareholder Returns

	QNCD	QA Basic Materials	QA Market
7D	-0.3%	1.3%	0.2%
1Y	-0.6%	-10.7%	9.0%

Return vs Industry: QNCD exceeded the QA Basic Materials industry which returned -10.7% over the past year.

Return vs Market: QNCD underperformed the QA Market which returned 9% over the past year.

Price Volatility

Is QNCD's price volatile compared to industry and market?
QNCD volatility
QNCD Average Weekly Movement	2.7%
Basic Materials Industry Average Movement	5.2%
Market Average Movement	4.5%
10% most volatile stocks in QA Market	6.4%
10% least volatile stocks in QA Market	2.8%

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

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

About the Company

Founded	Employees	CEO	Website
1965	n/a	Essa Mohammed A M Kaldari	https://www.qatarcement.com

Qatar National Cement Company (Q.P.S.C.) manufactures and sells cement, washed sand, and other by-products in Qatar. It offers ordinary Portland cement, sulphate resistant cement, hydrated and calcined lime, Portland pulverized fuel ash cement, and calcium carbonate. The company was founded in 1965 and is headquartered in Doha, Qatar.

Qatar National Cement Company (Q.P.S.C.) Fundamentals Summary

How do Qatar National Cement Company (Q.P.S.C.)'s earnings and revenue compare to its market cap?
QNCD fundamental statistics
Market Cap	ر.ق3.27b
Earnings (TTM)	ر.ق231.47m
Revenue (TTM)	ر.ق803.42m

14.1x

P/E Ratio

4.1x

P/S Ratio

Is QNCD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
QNCD income statement (TTM)
Revenue	ر.ق803.42m
Cost of Revenue	ر.ق541.60m
Gross Profit	ر.ق261.82m
Other Expenses	ر.ق30.35m
Earnings	ر.ق231.47m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.35
Gross Margin	32.59%
Net Profit Margin	28.81%
Debt/Equity Ratio	0.0%

How did QNCD perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

85%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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 QNCD?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for QNCD. This is calculated by dividing QNCD's market cap by their current preferred multiple.
What is QNCD's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.ق3.27b

QNCD 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	3.3x
Enterprise Value/EBITDA	7.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

QNCD PE Ratio vs Peers

The above table shows the PE ratio for QNCD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	39.6x
QIGD Qatari Investors Group Q.S.C	10.6x	n/a	ر.ق2.5b
QAMC Qatar Aluminium Manufacturing Company Q.P.S.C	9.6x	-12.1%	ر.ق9.1b
SMCB Solusi Bangun Indonesia	18.8x	n/a	Rp14.0t
003037 Guangdong Sanhe Pile	119.7x	n/a	CN¥6.0b
QNCD Qatar National Cement Company (Q.P.S.C.)	14.1x	n/a	ر.ق3.3b

Forward PE

Price-To-Earnings vs Peers: QNCD is good value based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (39.6x).

Price to Earnings Ratio vs Industry

How does QNCD's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

Price-To-Earnings vs Industry: QNCD is good value based on its Price-To-Earnings Ratio (14.1x) compared to the Asian Basic Materials industry average (15.2x)

Price to Earnings Ratio vs Fair Ratio

What is QNCD'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.

QNCD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.1x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: QNCD (QAR5.01) is trading below our estimate of fair value (QAR21.89)

Significantly Below Fair Value: QNCD is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

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Future Growth

How is Qatar National Cement Company (Q.P.S.C.) 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

14.7%

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 Qatar National Cement Company (Q.P.S.C.) 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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Examine whether Qatar National Cement Company (Q.P.S.C.) is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Qatar National Cement Company (Q.P.S.C.) 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

-18.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: QNCD has high quality earnings.

Growing Profit Margin: QNCD's current net profit margins (28.8%) are higher than last year (22.7%).

Past Earnings Growth Analysis

Earnings Trend: QNCD's earnings have declined by 18.6% per year over the past 5 years.

Accelerating Growth: QNCD's earnings growth over the past year (40.8%) exceeds its 5-year average (-18.6% per year).

Earnings vs Industry: QNCD earnings growth over the past year (40.8%) exceeded the Basic Materials industry -1.8%.

Return on Equity

High ROE: QNCD's Return on Equity (7.9%) is considered low.

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Financial Health

How is Qatar National Cement 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: QNCD's short term assets (QAR1.3B) exceed its short term liabilities (QAR224.0M).

Long Term Liabilities: QNCD's short term assets (QAR1.3B) exceed its long term liabilities (QAR147.1M).

Debt to Equity History and Analysis

Debt Level: QNCD is debt free.

Reducing Debt: QNCD has no debt compared to 5 years ago when its debt to equity ratio was 11.2%.

Debt Coverage: QNCD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: QNCD has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Qatar National Cement Company (Q.P.S.C.) current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

5.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: QNCD's dividend (5.99%) is higher than the bottom 25% of dividend payers in the QA market (2.95%).

High Dividend: QNCD's dividend (5.99%) is in the top 25% of dividend payers in the QA market (4.45%)

Stability and Growth of Payments

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

Growing Dividend: QNCD's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.7%), QNCD's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.1%), QNCD's dividend payments are well covered by cash flows.

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Management

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

2.5yrs

Average board tenure

CEO

Essa Mohammed A M Kaldari

0.50

Tenure

Mr. Essa Mohammed Ali A M Kaldari serves as Chief Executive Director and Director at Qatar National Cement Company (Q.P.S.C.) since 2022.

Board Members

Experienced Board: QNCD's board of directors are not considered experienced ( 2.5 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	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31