Eastern Province Cement (SASE:3080) - Share price, News & Analysis

3080 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	2/6
Financial Health	6/6
Dividends	2/6

3080 Stock Overview

Eastern Province Cement Company produces and sells clinker and cement in the Kingdom of Saudi Arabia and internationally.

Rewards

Trading at 41.4% below our estimate of its fair value

Revenue is forecast to grow 8.16% per year

Risk Analysis

Dividend of 5.18% is not well covered by earnings or forecast to be in the next 3 years

Eastern Province Cement Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Eastern Province Cement
Historical stock prices
Current Share Price	ر.س42.45
52 Week High	ر.س54.00
52 Week Low	ر.س41.65
Beta	0.82
1 Month Change	-6.91%
3 Month Change	-6.81%
1 Year Change	-12.47%
3 Year Change	42.45%
5 Year Change	75.56%
Change since IPO	8.02%

Recent News & Updates

Jun 21

What Is Eastern Province Cement Company's (TADAWUL:3080) Share Price Doing?

Eastern Province Cement Company ( TADAWUL:3080 ), might not be a large cap stock, but it saw significant share price...

Shareholder Returns

	3080	SA Basic Materials	SA Market
7D	-7.1%	-4.7%	-3.6%
1Y	-12.5%	-28.4%	11.2%

Return vs Industry: 3080 exceeded the SA Basic Materials industry which returned -29.4% over the past year.

Return vs Market: 3080 underperformed the SA Market which returned 10.8% over the past year.

Price Volatility

Is 3080's price volatile compared to industry and market?
3080 volatility
3080 Average Weekly Movement	3.3%
Basic Materials Industry Average Movement	3.5%
Market Average Movement	4.8%
10% most volatile stocks in SA Market	7.0%
10% least volatile stocks in SA Market	3.1%

Stable Share Price: 3080 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 3080's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	n/a	Fahad Rashed Al-Otaibi	https://www.epcco.com.sa

Eastern Province Cement Company produces and sells clinker and cement in the Kingdom of Saudi Arabia and internationally. It operates in two segments, Cement and Precast. The Cement segment offers ordinary, salt-resistant, and clinker cement.

Eastern Province Cement Fundamentals Summary

How do Eastern Province Cement's earnings and revenue compare to its market cap?
3080 fundamental statistics
Market Cap	ر.س3.65b
Earnings (TTM)	ر.س170.02m
Revenue (TTM)	ر.س701.78m

21.5x

P/E Ratio

5.2x

P/S Ratio

Is 3080 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3080 income statement (TTM)
Revenue	ر.س701.78m
Cost of Revenue	ر.س460.24m
Gross Profit	ر.س241.55m
Other Expenses	ر.س71.53m
Earnings	ر.س170.02m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.98
Gross Margin	34.42%
Net Profit Margin	24.23%
Debt/Equity Ratio	0%

How did 3080 perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

126%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 3080 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 3080?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3080. This is calculated by dividing 3080's market cap by their current preferred multiple.
What is 3080's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.س3.65b

3080 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	4.6x
Enterprise Value/EBITDA	11.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 3080's PE Ratio compare to its peers?

3080 PE Ratio vs Peers

The above table shows the PE ratio for 3080 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	30.2x

Forward PE

Price-To-Earnings vs Peers: 3080 is good value based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (30.2x).

Price to Earnings Ratio vs Industry

How does 3080's PE Ratio compare vs other companies in the Basic Materials Industry?

Price-To-Earnings vs Industry: 3080 is good value based on its Price-To-Earnings Ratio (21.5x) compared to the SA Basic Materials industry average (27.7x)

Price to Earnings Ratio vs Fair Ratio

What is 3080'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.

3080 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3080's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 3080 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3080 (SAR42.45) is trading below our estimate of fair value (SAR72.46)

Significantly Below Fair Value: 3080 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3080's PEG Ratio to determine if it is good value.

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Future Growth

How is Eastern Province Cement forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.2%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 3080's forecast earnings growth is above the savings rate (9%).

Earnings vs Market: Insufficient data to determine if 3080's earnings are forecast to grow faster than the SA market

High Growth Earnings: Insufficient data to determine if 3080's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3080's revenue (8.2% per year) is forecast to grow faster than the SA market (-2.9% per year).

High Growth Revenue: 3080's revenue (8.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 3080's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Eastern Province 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

14.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3080 has high quality earnings.

Growing Profit Margin: 3080's current net profit margins (24.2%) are lower than last year (26.5%).

Past Earnings Growth Analysis

Earnings Trend: 3080's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: 3080's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3080 had negative earnings growth (-11.4%) over the past year, making it difficult to compare to the Basic Materials industry average (-44.8%).

Return on Equity

High ROE: 3080's Return on Equity (7.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Eastern Province Cement'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: 3080's short term assets (SAR1.2B) exceed its short term liabilities (SAR386.5M).

Long Term Liabilities: 3080's short term assets (SAR1.2B) exceed its long term liabilities (SAR123.0M).

Debt to Equity History and Analysis

Debt Level: 3080 is debt free.

Reducing Debt: 3080 has no debt compared to 5 years ago when its debt to equity ratio was 2.7%.

Debt Coverage: 3080 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3080 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Eastern Province 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
Future Dividend Coverage

5.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3080's dividend (5.18%) is higher than the bottom 25% of dividend payers in the SA market (1.97%).

High Dividend: 3080's dividend (5.18%) is in the top 25% of dividend payers in the SA market (4.64%)

Stability and Growth of Payments

Stable Dividend: 3080's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3080's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (126.5%), 3080's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (143.9%), 3080'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?

1.4yrs

Average board tenure

CEO

Fahad Rashed Al-Otaibi

no data

Tenure

Eng. Fahad Rashed Mohammed Al-Otaibi has been Chief Executive Officer Eastern Province Cement Co.(formerly known as The Eastern Province Cement Company) and served as it's Director at Eastern Province Ceme...

Board Members

Experienced Board: 3080's board of directors are not considered experienced ( 1.4 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	2022/06/24 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31