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3004

Northern Region Cement SASE:3004 Stock Report

Last Price

ر.س11.68

Market Cap

ر.س2.1b

7D

6.0%

1Y

-26.7%

Updated

03 Oct, 2022

Data

Company Financials
3004 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends2/6

3004 Stock Overview

Northern Region Cement Company engages in the production and sale of Portland cement in Saudi Arabia and The Hashemite Kingdom of Jordan.

Northern Region Cement Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Northern Region Cement
Historical stock prices
Current Share Priceر.س11.68
52 Week Highر.س16.10
52 Week Lowر.س10.92
Beta0.86
1 Month Change-2.50%
3 Month Change0.69%
1 Year Change-26.73%
3 Year Change10.40%
5 Year Change24.92%
Change since IPO-56.74%

Recent News & Updates

Jun 19
Northern Region Cement (TADAWUL:3004) Is Reinvesting At Lower Rates Of Return

Northern Region Cement (TADAWUL:3004) Is Reinvesting At Lower Rates Of Return

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

3004SA Basic MaterialsSA Market
7D6.0%3.9%2.4%
1Y-26.7%-19.0%4.8%

Return vs Industry: 3004 underperformed the SA Basic Materials industry which returned -19% over the past year.

Return vs Market: 3004 underperformed the SA Market which returned 4.8% over the past year.

Price Volatility

Is 3004's price volatile compared to industry and market?
3004 volatility
3004 Average Weekly Movement2.6%
Basic Materials Industry Average Movement3.5%
Market Average Movement4.6%
10% most volatile stocks in SA Market7.2%
10% least volatile stocks in SA Market2.9%

Stable Share Price: 3004 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 3004's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/aObaid Bin Al Subaiehttps://www.nrc.com.sa

Northern Region Cement Company engages in the production and sale of Portland cement in Saudi Arabia and The Hashemite Kingdom of Jordan. It provides white Portland cement for precast, concrete structural, and architectural construction purposes; and white Portland limestone cement for decorative concrete products and tiles. The company also offers ordinary Portland cement that is used for pavements, floors, concrete buildings, bridges, railway structures, warehouses, tanks, water pipes, and construction units; sulfate resistant grey Portland cement for use in concrete exposed to high sulfur reactions; and oil well cement.

Northern Region Cement Fundamentals Summary

How do Northern Region Cement's earnings and revenue compare to its market cap?
3004 fundamental statistics
Market Capر.س2.08b
Earnings (TTM)ر.س101.36m
Revenue (TTM)ر.س521.40m

20.7x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3004 income statement (TTM)
Revenueر.س521.40m
Cost of Revenueر.س299.43m
Gross Profitر.س221.97m
Other Expensesر.س120.61m
Earningsر.س101.36m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.56
Gross Margin42.57%
Net Profit Margin19.44%
Debt/Equity Ratio42.4%

How did 3004 perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3004 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3004?

Other financial metrics that can be useful for relative valuation.

3004 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/Revenue5.7x
Enterprise Value/EBITDA15.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 3004's PE Ratio compare to its peers?

3004 PE Ratio vs Peers
The above table shows the PE ratio for 3004 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.2x
3003 City Cement
34.7x47.2%ر.س3.0b
3002 Najran Cement
20.3x-15.1%ر.س2.2b
9512 Riyadh Cement
28.2x20.6%ر.س3.9b
3080 Eastern Province Cement
25.5x-9.6%ر.س3.8b
3004 Northern Region Cement
20.7xn/aر.س2.1b

Price-To-Earnings vs Peers: 3004 is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (27.2x).


Price to Earnings Ratio vs Industry

How does 3004's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

Price-To-Earnings vs Industry: 3004 is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the Asian Basic Materials industry average (15.2x)


Price to Earnings Ratio vs Fair Ratio

What is 3004'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.

3004 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3004's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 3004 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3004 (SAR11.68) is trading above our estimate of fair value (SAR4.1)

Significantly Below Fair Value: 3004 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Northern Region 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


22.5%

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 Northern Region 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.


Discover growth companies

Past Performance

How has Northern Region 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


22.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3004 has high quality earnings.

Growing Profit Margin: 3004's current net profit margins (19.4%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: 3004's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: 3004's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3004 had negative earnings growth (-14.7%) over the past year, making it difficult to compare to the Basic Materials industry average (-50.4%).


Return on Equity

High ROE: 3004's Return on Equity (4.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Northern Region Cement's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3004's short term assets (SAR841.8M) exceed its short term liabilities (SAR776.0M).

Long Term Liabilities: 3004's short term assets (SAR841.8M) exceed its long term liabilities (SAR404.3M).


Debt to Equity History and Analysis

Debt Level: 3004's net debt to equity ratio (40.3%) is considered high.

Reducing Debt: 3004's debt to equity ratio has reduced from 49.9% to 42.4% over the past 5 years.

Debt Coverage: 3004's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: 3004's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


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Dividend

What is Northern Region Cement 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

  • Cash Flow Coverage


4.28%

Current Dividend Yield

Dividend Yield vs Market

Northern Region Cement Dividend Yield vs Market
How does Northern Region Cement dividend yield compare to the market?
SegmentDividend Yield
Company (Northern Region Cement)4.3%
Market Bottom 25% (SA)2.0%
Market Top 25% (SA)4.7%
Industry Average (Basic Materials)4.3%
Analyst forecast in 3 Years (Northern Region Cement)n/a

Notable Dividend: 3004's dividend (4.28%) is higher than the bottom 25% of dividend payers in the SA market (2.03%).

High Dividend: 3004's dividend (4.28%) is low compared to the top 25% of dividend payers in the SA market (4.65%).


Stability and Growth of Payments

Stable Dividend: 3004's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3004's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44.4%), 3004's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 3004 is paying a dividend but the company has no free cash flows.


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Management

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

16.8yrs

Average board tenure


CEO

Obaid Bin Al Subaie (58 yo)

no data

Tenure

Dr. Obaid Bin Sa'ad Al Subaie serves as Chief Executive Officer at Northern Region Cement Company. He was General Manager at Northern Region Cement Company since 2010. Dr. Al Subaie joined Northern Region...


Board Members

Experienced Board: 3004's board of directors are seasoned and experienced ( 16.8 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

What is the ownership structure of 3004?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders822,0000.5%
Institutions6,706,5693.7%
Private Companies18,559,80010.3%
General Public153,911,63185.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 12 shareholders own 14.49% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.31%
Pan Kingdom Invest, Co
18,559,800SAR216.8m0%no data
1.87%
The Vanguard Group, Inc.
3,370,184SAR39.4m0%no data
1.29%
Dimensional Fund Advisors LP
2,315,451SAR27.0m0.24%no data
0.43%
BlackRock, Inc.
779,904SAR9.1m-8.6%no data
0.38%
Suleiman Bin Salim Al Harbi
690,000SAR8.1m0%no data
0.059%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
105,481SAR1.2m16.41%no data
0.056%
Faisal Al Sagheer
100,000SAR1.2m0%no data
0.05%
State Street Global Advisors, Inc.
90,637SAR1.1m0.79%no data
0.017%
Raed Bin Ibrahim Al Mudaiheem
30,000SAR350.4k0%no data
0.014%
AXA Investment Managers S.A.
24,600SAR287.3k0%no data
0.011%
Mackenzie Financial Corporation
20,312SAR237.2k0%no data
0.0011%
Abdulrahman Saleh Al-Obaid
2,000SAR23.4k0%no data

Company Information

Northern Region Cement Company's employee growth, exchange listings and data sources


Key Information

  • Name: Northern Region Cement Company
  • Ticker: 3004
  • Exchange: SASE
  • Founded: 2006
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: ر.س2.084b
  • Shares outstanding: 180.00m
  • Website: https://www.nrc.com.sa

Location

  • Northern Region Cement Company
  • PO Box: 61011
  • Riyadh
  • 11565
  • Saudi Arabia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3004SASE (Saudi Arabian Stock Exchange)YesOrdinary SharesSASARFeb 2013

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.