United Wire Factories (SASE:1301) - Share price, News & Analysis

Q: What is the Fair Price of 1301 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1301 (SAR29.85) is trading above our estimate of [[fair value]] (SAR5.66)

1301 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	2/6

1301 Stock Overview

United Wire Factories Company manufactures and markets steel wire products for the construction and building, civil, and industrial sectors in the Kingdom of Saudi Arabia.

Rewards

Price-To-Earnings ratio (18.7x) is below the SA market (25.4x)

Risk Analysis

Dividend of 3.02% is not well covered by earnings

United Wire Factories Competitors

Al Yamamah Steel Industries

SASE:1304

ر.س1.7b

Group Five Pipe Saudi

SASE:9523

ر.س712.6m

Saudi Steel Pipes

SASE:1320

ر.س1.1b

Umm Al-Qura Cement

SASE:3005

ر.س1.2b

Price History & Performance

Summary of all time highs, changes and price drops for United Wire Factories
Historical stock prices
Current Share Price	ر.س29.85
52 Week High	ر.س41.75
52 Week Low	ر.س26.10
Beta	0.90
1 Month Change	-3.87%
3 Month Change	4.19%
1 Year Change	-25.93%
3 Year Change	64.69%
5 Year Change	24.12%
Change since IPO	-10.20%

Shareholder Returns

	1301	SA Metals and Mining	SA Market
7D	5.5%	1.2%	3.9%
1Y	-25.9%	50.9%	15.6%

Return vs Industry: 1301 underperformed the SA Metals and Mining industry which returned 49.2% over the past year.

Return vs Market: 1301 underperformed the SA Market which returned 12.1% over the past year.

Price Volatility

Is 1301's price volatile compared to industry and market?
1301 volatility
1301 Average Weekly Movement	4.2%
Metals and Mining Industry Average Movement	5.2%
Market Average Movement	4.9%
10% most volatile stocks in SA Market	7.3%
10% least volatile stocks in SA Market	3.1%

Stable Share Price: 1301 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1301's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	573	Nabil Al-Amir	https://unitedwires.com.sa

United Wire Factories Company manufactures and markets steel wire products for the construction and building, civil, and industrial sectors in the Kingdom of Saudi Arabia. The company offers steel rebars, wire mesh, block ladder mesh, nails, fences, barbed and concertina wires, and tying wires. It also provides bailing wires, cloth hangers, welded wires mesh, staples clips, and black annealed wires; and black drawn, galvanized, PVC coated, and deformed wires.

United Wire Factories Fundamentals Summary

How do United Wire Factories's earnings and revenue compare to its market cap?
1301 fundamental statistics
Market Cap	ر.س1.05b
Earnings (TTM)	ر.س56.09m
Revenue (TTM)	ر.س993.49m

18.7x

P/E Ratio

1.1x

P/S Ratio

Is 1301 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1301 income statement (TTM)
Revenue	ر.س993.49m
Cost of Revenue	ر.س898.56m
Gross Profit	ر.س94.93m
Other Expenses	ر.س38.83m
Earnings	ر.س56.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.60
Gross Margin	9.55%
Net Profit Margin	5.65%
Debt/Equity Ratio	0%

How did 1301 perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

75%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1301 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
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1301?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1301. This is calculated by dividing 1301's market cap by their current preferred multiple.
What is 1301's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.س1.05b

1301 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	0.9x
Enterprise Value/EBITDA	13x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1301's PE Ratio compare to its peers?

1301 PE Ratio vs Peers

The above table shows the PE ratio for 1301 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	56.4x
1304 Al Yamamah Steel Industries	9.8x	-23.1%	ر.س1.7b
9523 Group Five Pipe Saudi	20.3x	n/a	ر.س712.6m
1320 Saudi Steel Pipes	175.7x	n/a	ر.س1.1b
3005 Umm Al-Qura Cement	19.8x	n/a	ر.س1.2b
1301 United Wire Factories	18.7x	n/a	ر.س1.0b

Forward PE

Price-To-Earnings vs Peers: 1301 is good value based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (56.4x).

Price to Earnings Ratio vs Industry

How does 1301's PE Ratio compare vs other companies in the Asian Metals and Mining Industry?

Price-To-Earnings vs Industry: 1301 is good value based on its Price-To-Earnings Ratio (18.7x) compared to the SA Metals and Mining industry average (18.9x)

Price to Earnings Ratio vs Fair Ratio

What is 1301'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.

1301 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1301's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1301 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1301 (SAR29.85) is trading above our estimate of fair value (SAR5.66)

Significantly Below Fair Value: 1301 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1301's PEG Ratio to determine if it is good value.

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Future Growth

How is United Wire Factories 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

9.3%

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 United Wire Factories 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 United Wire Factories's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has United Wire Factories performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

15.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1301 has high quality earnings.

Growing Profit Margin: 1301's current net profit margins (5.6%) are lower than last year (8.1%).

Past Earnings Growth Analysis

Earnings Trend: 1301's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: 1301's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1301 had negative earnings growth (-11.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (35.3%).

Return on Equity

High ROE: 1301's Return on Equity (12.4%) is considered low.

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Financial Health

How is United Wire Factories'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: 1301's short term assets (SAR425.1M) exceed its short term liabilities (SAR65.4M).

Long Term Liabilities: 1301's short term assets (SAR425.1M) exceed its long term liabilities (SAR11.5M).

Debt to Equity History and Analysis

Debt Level: 1301 is debt free.

Reducing Debt: 1301 has not had any debt for past 5 years.

Debt Coverage: 1301 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1301 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is United Wire Factories's 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

3.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1301's dividend (3.02%) is higher than the bottom 25% of dividend payers in the SA market (1.95%).

High Dividend: 1301's dividend (3.02%) is low compared to the top 25% of dividend payers in the SA market (4.54%).

Stability and Growth of Payments

Stable Dividend: 1301's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1301's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (75.1%), 1301's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (106.1%), 1301'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?

2.6yrs

Average management tenure

CEO

Nabil Al-Amir

2.67yrs

Tenure

Mr. Turki Mohammed Al-Qurini serves as Chief Executive Officer at United Wire Factories Company since October 2019.

Leadership Team

Experienced Management: 1301's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: 1301's board of directors are considered experienced (3.2 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	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31