SASE:6001

Stock Analysis Report

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Market Cap

ر.س4.2b

Last Updated

2021/07/29 16:26 UTC

Data Sources

Company Financials +

Executive Summary

Halwani Bros. Co. Ltd. produces, manufactures, and distributes food products in the Kingdom of Saudi Arabia. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Halwani Bros's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6001 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6001's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

6001

0.7%

SA Food

0.3%

SA Market


1 Year Return

86.4%

6001

14.3%

SA Food

14.8%

SA Market

Return vs Industry: 6001 exceeded the SA Food industry which returned 13.7% over the past year.

Return vs Market: 6001 exceeded the SA Market which returned 14.4% over the past year.


Shareholder returns

6001IndustryMarket
7 Day1.4%0.7%0.3%
30 Day2.0%-5.5%-1.1%
90 Day-2.1%6.8%0.02%
1 Year88.5%86.4%16.7%14.3%19.2%14.8%
3 Year156.7%148.5%32.9%26.0%42.2%29.2%
5 Year171.6%140.4%52.2%38.9%104.7%74.0%

Long-Term Price Volatility Vs. Market

How volatile is Halwani Bros's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Halwani Bros undervalued compared to its fair value and its price relative to the market?

38.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6001 (SAR104.4) is trading above our estimate of fair value (SAR76.98)

Significantly Below Fair Value: 6001 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6001's PE Ratio (38.5x) is in line with the SA Food industry average.

PE vs Market: 6001 is poor value based on its PE Ratio (38.5x) compared to the SA market (33.5x).


Price to Earnings Growth Ratio

PEG Ratio: 6001 is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: 6001 is overvalued based on its PB Ratio (7.2x) compared to the SA Food industry average (3.7x).


Future Growth

How is Halwani Bros forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6001's forecast earnings growth (11% per year) is above the savings rate (8.8%).

Earnings vs Market: 6001's earnings (11% per year) are forecast to grow faster than the SA market (7.1% per year).

High Growth Earnings: 6001's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6001's revenue (6.5% per year) is forecast to grow faster than the SA market (3.4% per year).

High Growth Revenue: 6001's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6001's Return on Equity is forecast to be low in 3 years time (19.6%).


Past Performance

How has Halwani Bros performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6001 has high quality earnings.

Growing Profit Margin: 6001's current net profit margins (9.1%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: 6001's earnings have declined by 9.5% per year over the past 5 years.

Accelerating Growth: 6001's earnings growth over the past year (251.7%) exceeds its 5-year average (-9.5% per year).

Earnings vs Industry: 6001 earnings growth over the past year (251.7%) exceeded the Food industry 38.9%.


Return on Equity

High ROE: 6001's Return on Equity (18.7%) is considered low.


Financial Health

How is Halwani Bros's financial position?


Financial Position Analysis

Short Term Liabilities: 6001's short term assets (SAR489.9M) exceed its short term liabilities (SAR435.4M).

Long Term Liabilities: 6001's short term assets (SAR489.9M) exceed its long term liabilities (SAR82.3M).


Debt to Equity History and Analysis

Debt Level: 6001's debt to equity ratio (49.2%) is considered high.

Reducing Debt: 6001's debt to equity ratio has reduced from 51% to 49.2% over the past 5 years.

Debt Coverage: 6001's debt is well covered by operating cash flow (44%).

Interest Coverage: 6001's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet


Dividend

What is Halwani Bros's current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6001's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the SA market (1.46%).

High Dividend: 6001's dividend (1.28%) is low compared to the top 25% of dividend payers in the SA market (4.26%).


Stability and Growth of Payments

Stable Dividend: 6001's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6001's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.2%), 6001's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6001's dividends in 3 years are forecast to be covered by earnings (67.8% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Thamer Temairik

2.25yrs

Tenure

Mr. Thamer Temairik serves as the Chief Executive Officer at Halwani Bros. Co. Ltd. since April 2019. He served as a Director at Halwani Bros. Co. Ltd. since April 2019.


Leadership Team

Experienced Management: 6001's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: 6001's board of directors are not considered experienced ( 2.3 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 been diluted in the past year, with total shares outstanding growing by 12.5%.


Top Shareholders

Company Information

Halwani Bros. Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Halwani Bros. Co. Ltd.
  • Ticker: 6001
  • Exchange: SASE
  • Founded: 1830
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ر.س4.153b
  • Shares outstanding: 39.78m
  • Website: https://www.halwani.com.sa

Location

  • Halwani Bros. Co. Ltd.
  • Jeddah Industrial City Phase 4
  • Street 70
  • Jeddah
  • 21421
  • Saudi Arabia

Listings


Biography

Halwani Bros. Co. Ltd. produces, manufactures, and distributes food products in the Kingdom of Saudi Arabia. It offers halawa; maamoul; tahina; meat products; breaded chicken and burgers; jams; dairy produ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 16:26
End of Day Share Price2021/07/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.