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3005

Umm Al-Qura Cement SASE:3005 Stock Report

Last Price

ر.س23.00

Market Cap

ر.س1.3b

7D

-0.3%

1Y

-28.1%

Updated

09 Aug, 2022

Data

Company Financials +
3005 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends2/6

3005 Stock Overview

Umm Al-Qura Cement Company produces and sells cement products.

Umm Al-Qura Cement Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Umm Al-Qura Cement
Historical stock prices
Current Share Priceر.س23.00
52 Week Highر.س32.25
52 Week Lowر.س20.38
Beta0.84
1 Month Change7.48%
3 Month Change-9.45%
1 Year Change-28.13%
3 Year Change41.98%
5 Year Change34.19%
Change since IPO109.09%

Recent News & Updates

May 25
Returns Are Gaining Momentum At Umm Al-Qura Cement (TADAWUL:3005)

Returns Are Gaining Momentum At Umm Al-Qura Cement (TADAWUL:3005)

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business...

Shareholder Returns

3005SA Basic MaterialsSA Market
7D-0.3%1.7%0.06%
1Y-28.1%-20.5%18.2%

Return vs Industry: 3005 underperformed the SA Basic Materials industry which returned -21% over the past year.

Return vs Market: 3005 underperformed the SA Market which returned 17.3% over the past year.

Price Volatility

Is 3005's price volatile compared to industry and market?
3005 volatility
3005 Average Weekly Movement3.6%
Basic Materials Industry Average Movement3.8%
Market Average Movement5.1%
10% most volatile stocks in SA Market8.0%
10% least volatile stocks in SA Market3.2%

Stable Share Price: 3005 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3005's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013n/aMajid Tariq Gharbawihttps://www.uacc.com.sa

Umm Al-Qura Cement Company produces and sells cement products. The company provides ordinary Portland, Portland Pozzolana, sulphate resistant, salt resistant, white cement, agglomerated cement products. It offers cement products for the use in various applications, including construction and civil projects, concrete structures, foundations, reinforced concrete works, pipes, concrete slabs, cement bricks factories, flooring and flooring works, hydraulic concrete structures, concrete works, marine structures, construction and plastering works, sewage facilities, dams, waterways, and foundations of sulfate-prone buildings, as well as for pegs or foundations of underground concrete structures and precast concrete.

Umm Al-Qura Cement Fundamentals Summary

How do Umm Al-Qura Cement's earnings and revenue compare to its market cap?
3005 fundamental statistics
Market Capر.س1.27b
Earnings (TTM)ر.س60.82m
Revenue (TTM)ر.س254.03m

20.8x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3005 income statement (TTM)
Revenueر.س254.03m
Cost of Revenueر.س156.03m
Gross Profitر.س98.00m
Other Expensesر.س37.18m
Earningsر.س60.82m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.11
Gross Margin38.58%
Net Profit Margin23.94%
Debt/Equity Ratio48.4%

How did 3005 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

68%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3005 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

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3005?

Other financial metrics that can be useful for relative valuation.

3005 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/Revenue6.2x
Enterprise Value/EBITDA11.5x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does 3005's PE Ratio compare to its peers?

3005 PE Ratio vs Peers
The above table shows the PE ratio for 3005 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average71.3x
3001 Hail Cement
141.1xn/aر.س1.4b
2090 National Gypsum
100xn/aر.س959.5m
3004 Northern Region Cement
21.3xn/aر.س2.2b
3002 Najran Cement
22.7x-15.3%ر.س2.5b
3005 Umm Al-Qura Cement
20.8x25.7%ر.س1.3b

Price-To-Earnings vs Peers: 3005 is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (71.3x).


Price to Earnings Ratio vs Industry

How does 3005's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

Price-To-Earnings vs Industry: 3005 is good value based on its Price-To-Earnings Ratio (20.8x) compared to the SA Basic Materials industry average (29.4x)


Price to Earnings Ratio vs Fair Ratio

What is 3005'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.

3005 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3005's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 3005 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3005 (SAR23) is trading below our estimate of fair value (SAR43.31)

Significantly Below Fair Value: 3005 is trading below fair value by more than 20%.


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Umm Al-Qura Cement forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


25.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3005's forecast earnings growth (25.7% per year) is above the savings rate (8.9%).

Earnings vs Market: 3005's earnings (25.7% per year) are forecast to grow faster than the SA market (-0.3% per year).

High Growth Earnings: 3005's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3005's revenue (6.5% per year) is forecast to grow faster than the SA market (-3.5% per year).

High Growth Revenue: 3005'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: 3005's Return on Equity is forecast to be low in 3 years time (13%).


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Past Performance

How has Umm Al-Qura Cement 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


25.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3005 has high quality earnings.

Growing Profit Margin: 3005's current net profit margins (23.9%) are lower than last year (33.7%).


Past Earnings Growth Analysis

Earnings Trend: 3005's earnings have grown significantly by 25.3% per year over the past 5 years.

Accelerating Growth: 3005's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3005 had negative earnings growth (-44.8%) over the past year, making it difficult to compare to the Basic Materials industry average (-44.8%).


Return on Equity

High ROE: 3005's Return on Equity (8%) is considered low.


Discover strong past performing companies

Financial Health

How is Umm Al-Qura 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: 3005's short term assets (SAR405.0M) exceed its short term liabilities (SAR176.8M).

Long Term Liabilities: 3005's short term assets (SAR405.0M) exceed its long term liabilities (SAR277.9M).


Debt to Equity History and Analysis

Debt Level: 3005's net debt to equity ratio (40.3%) is considered high.

Reducing Debt: 3005's debt to equity ratio has reduced from 109.7% to 48.4% over the past 5 years.

Debt Coverage: 3005's debt is not well covered by operating cash flow (10.4%).

Interest Coverage: 3005's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


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Dividend

What is Umm Al-Qura 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


3.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3005's dividend (3.26%) is higher than the bottom 25% of dividend payers in the SA market (1.81%).

High Dividend: 3005's dividend (3.26%) is low compared to the top 25% of dividend payers in the SA market (4.34%).


Stability and Growth of Payments

Stable Dividend: 3005 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3005's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.8%), 3005's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (110.8%), 3005's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

8.6yrs

Average management tenure


CEO

Majid Tariq Gharbawi

0.83

Tenure

Mr. Majid Tariq Salah Gharbawi has been the Chief Executive Officer of Umm Al-Qura Cement Company since October 20, 2021. He has lots of experience in the financial and banking sector and included in his p...


Leadership Team

Experienced Management: 3005's management team is seasoned and experienced (8.6 years average tenure).


Board Members

Experienced Board: 3005's board of directors are considered experienced (9.6 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.


Top Shareholders

Company Information

Umm Al-Qura Cement Company's employee growth, exchange listings and data sources


Key Information

  • Name: Umm Al-Qura Cement Company
  • Ticker: 3005
  • Exchange: SASE
  • Founded: 2013
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: ر.س1.265b
  • Shares outstanding: 55.00m
  • Website: https://www.uacc.com.sa

Location

  • Umm Al-Qura Cement Company
  • King Abdulaziz Road
  • Al-Sahafa District
  • Riyadh
  • 11433
  • Saudi Arabia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/03/31
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.