Qatari stock report - Ooredoo Q.S.C.

QATAR

Ooredoo Q.S.C. increases May 24, 2018 12:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Ooredoo Q.S.C. (QE:ORDS), Qatar's largest Telecommunication company by market cap, has increased 59.0 Dirham (0.9%) from its last trading session of May 23 to close at QAR67.27. Compared with the QE Index which rose 54.7 points (0.6%) in the day, the relative price increase was 0.3%. The volume was 0.9 times the average daily trading volume of 73,143 shares.

THE PAST FOUR YEARS

Ooredoo Q.S.C. plummets 49% in 4 years

Ooredoo Q.S.C. (QE:ORDS), has plummeted QAR64.70 (or 49.0%) in the past four years to close at QAR67.27. Compared with the QE Index which has fallen 30.4% over the same period, this is a relative price change of -18.6%.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Technicals, Low Performance Indicators, Moving Annual Return, Aggregate Volumes, Prices and Turnover Period

SECTION 3 RANKING

Global, Independent Ratings

SECTION 4 FINANCIALS

Financials Summary, Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-, Trailing 12 Months Dividends

SECTION 5 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 6 STOCK BUZZ

SECTION 1 OOREDOO Q.S.C. BULLISH SIGNALS

1.1 ORDS Fundamentals:

+ The relative yield of ORDS, defined by its yield of 5.2%, divided by average yield of dividend yielding stocks in the QE Index of 3.6% is 145.3%. This suggests Ooredoo Q.S.C. stock is undervalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stocks by value of Q Ratio.

+ Net profit margin has averaged 7.6% in the last 3 years. This is better than the sector average of 6.4% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 12.2% is better than sector average of 8.5%. This is computed as net profit margin of 7.3% times asset turnover [sales/assets] of 0.37 times leverage factor [total assets/shareholders' equity] of 3.9.

1.2 ORDS Undervaluation [compared with sector average]:

+ Return on Equity 12.2% [8.5%].

+ Return on Assets 2.7% [2.2%].

+ Dividend yield of 5.2% [3.9%].

1.3 ORDS Technicals:

Oversold/Bullish/Support Signals:

+ The Relative Strength Index (RSI) of 21.4 has breached the oversold line of 30, suggesting the price decrease of 8.1% in the last 14 days is unusually high.

+ The stock is oversold according to the Williams % R indicator of -81.6, suggesting the price is close to its 14-day low of QAR65.71.

+ The Stochastic indicator of 7.2 has pierced the oversold line of 20; this indicates the price is close to its 14-day low and is likely to revert to an uptrend.

1.4 ORDS High Performance Indicators:

DescriptionORDS ValueRank In Market
Price to Sales0.7In Top Quartile
Price Change %0.9In Top Quartile

SECTION 2 OOREDOO Q.S.C. BEARISH SIGNALS

2.1 ORDS Technicals:

+ In the last three months the stock has hit a new 52-week low five times, pointing to a downtrend.

+ The 2.4% premium to 12-month low of QAR65.71 against the 34.2% discount to high of QAR102.21 suggests the stock continues to push for new lows.

+ The present value of QAR1,000 (PV1000) invested one year ago in Ooredoo Q.S.C. is QAR692, comprising a capital loss of QAR336 and dividend reinvested of QAR28.

PV10001-week1-month1-year
ORDS.QE1,006805692
QE Index1,0121,026897

+ The present value of QAR1,000 (PV1000) invested five years ago in Ooredoo Q.S.C. is QAR759, including a capital loss of QAR350 and dividend reinvested of QAR109.

+ 5 years Multiplier in QAR = 0.759x

+ Compound Annual Growth Rate (CAGR) in QAR = -5.4%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Ooredoo Q.S.C. is $US759, including a capital loss of $US350 and dividend reinvested of $US109.

+ 5 years ago USD 1 equalled QAR 3.643

+ 5 years Multiplier in USD = 0.759x

+ Compound Annual Growth Rate (CAGR) in USD = -5.4%

May 24, 2018: USD 1 equals QAR 3.64

2.2 ORDS Low Performance Indicators:

DescriptionORDS ValueRank In Market
Total Debt to Equity1.7In Bottom 3%
Return on Capital Employed [ROCE] %4.9In Bottom 7%
Price/MAP500.86In Bottom Quartile
Price/MAP2000.81In Bottom Quartile

2.3 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 2 out of 5 years.

ORDSClose (QAR)Dividends (QAR)Capital Gain / (Loss) %% YieldAnnual Return %
May 2467.273.5(33.6)3.5(30.1)
1 Yr ago101.253.530.74.535.2
2 Yrs ago77.470.3(12.7)0.3(12.4)
3 Yrs ago88.764(32.7)3(29.7)
4 Yrs ago131.97427.43.931.3

Close 5 years ago QAR103.57

2.4 Aggregate Volumes, Prices and Turnover Period:

[Volume Index or VI in brackets; 1 is average]

+ Muscat: ORDS.MSM 105,000 [VI of 0.4] volume 60.82% of aggregate. Price: 51.0 Baisa.

+ Doha: ORDS.QE 67,651 [VI of 0.9] volume 39.18% of aggregate. Price: QAR67.27.

+ Aggregate volume: there were 172,651 shares of Ooredoo Q.S.C. worth QAR5.1 million traded today. The aggregate volume was 0.5 times average trading of 373,000 shares.

The turnover rate in the 12 months to date was 7.6% (or a turnover period of 13 years 58 days). This average length of ownership of the stock at 1.4 times the average holding period of 9 years 3 months for stocks in the QE Index suggests a larger number of core investors, making a long-term investment safer.

SECTION 3 OOREDOO Q.S.C. RANKING

3.1 Global Rank [out of 47,752 stocks] and Rank in the Middle East & Africa Region [out of 2,315 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)5.9B2,37662
Total Assets (US$)24.6B1,52562
Revenue (US$)9B1,51925
Net Profit (US$)540.3M1,72356
Return on Equity %12.210,456594
Net Profit Margin %7.314,630938
Price/Earnings13.77,226611
Yield %4.26,158651
PV$1000 (1Year) US$*69433,5341,583
US$* Change (1Year) %-9.427,2101,210

* 1 year ago USD 1 = QAR 3.65

May 24, 2018: USD 1 equals QAR 3.64

3.2 Independent Ratings

+ Forbes 2000:

Ooredoo Q.S.C. is the 1022nd largest by revenue in the Forbes Global 2000.

+ BSS/News Bites:

It is placed 29/41 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 31.

+ Vanguard Total World Stock ETF 7517:

The stock was one of 7517 global stocks selected by Vanguard Total World Stock ETF (VT). As at Jan 31, 2018, the Vanguard Total World Stock ETF held 22,140 shares worth $US589,059 by value of the ETF's portfolio [Ranked 3125 out of 7517 by value and 4 out of 21 for Qatar].

SECTION 4 OOREDOO Q.S.C. FINANCIALS

4.1 Financials Summary

Year endedDec 2017Dec 2016Dec 2015
Sales (USD B)99.18.9
Pretax (USD M)878.2859721.1
Net (USD M)540.3602.3581.9
EPS (QAR)6.146.846.61

Net profit was down 10.3% from US$602.3 million in 2016 to US$540.3 million in 2017. Earnings Per Share (EPS) was down 10.2% from QAR6.84 to QAR6.14.

4.2 Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-

Favourable Changes:

+ EBIT Margin up from 9.6% to 9.8%.

+ EBIT to total assets up from 3.5% to 3.6%.

+ Sales and marketing expenses to Sales down from 23.8% to 22.8%.

+ Debt to Equity down 6.5% from 1.8 to 1.7.

+ Retained earnings to total assets up from 12.4% to 13.5%.

+ Total current assets to Total Assets up from 27.3% to 30.4%.

+ Cash to Total Assets up from 18.2% to 20.6%.

Unfavourable Changes:

+ Net profit down 10.3% from QAR2.2b ($US602.2m) to QAR2.0b ($US540.3m)

+ EPS down 10.2% from QAR6.84 ($US1.88) to QAR6.14 ($US1.69).

+ Current ratio down 6.6% from 1.2 to 1.1.

+ Working capital to total assets down from 4.8% to 3.6%.

+ Total non-current assets to Total Assets down from 72.7% to 69.6%.

+ Fixed Assets to Total Assets down from 35.9% to 33%.

+ Total Liabilities to Operating Cash Flow of 6.3 compares unfavourably with the Joseph Piotroski benchmark of <4. However, it has improved by 5.1% from the previous year's ratio of 6.7.

Note:

+ Total revenue steady at QAR32.9b ($US9.0b).

+ Total revenue to total assets steady at 0.4.

+ Profit before tax to Sales up from 9.6% to 9.8%.

+ Tax expenses to Sales up from 1.2% to 2.4%.

+ Total liabilities to Total assets steady at 0.7.

+ Intangibles to Total Assets down from 32.7% to 32.2%.

4.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (Dirham)
24 May 2018350
24 May 2017350
24 May 201630
24 May 2015400
24 May 2014400

SECTION 5 OOREDOO Q.S.C. PROFILE

5.1 Activities

Ooredoo Q.S.C. is a provider of domestic and international telecommunication services to residential and business users. The Company offers landline, mobile, cable television and Internet services to personal users and businesses.

5.2 Industry & Sector

Classification LevelName of Sector
Economic SectorTelecommunication Services
Business SectorTelecommunications Services
Industry GroupTelecommunications Services

5.3 Top Management

The chairman is H. E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani and the chief financial officer is Abdullatif Dafallah.

5.4 Issued Capital

Based on 320,320,000 issued shares the market capitalisation is QAR21.5 billion (US$5.9 billion).

SECTION 6 OOREDOO Q.S.C. STOCK BUZZ

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April 05: OOREDOO TO DISCLOSE 2018 FIRST QUARTER FINANCIAL RESULTS ON APRIL 25, 2018

Ooredoo announces its intention to disclose its First Quarter (Q1) 2018 financial results on Wednesday, April 25, 2018.

March 27: FITCH DOWNGRADES OOREDOO TO 'A-'; OUTLOOK STABLE

Ooredoo announces that Fitch has downgraded Ooredoo to "A-" with stable outlook from "A" watch negative outlook. Fitch stated that the assignment of the rating followed a change of methodology. However, the credit rating agency noted an improved risk profile of Ooredoo.

February 22: Ooredoo wins 'Digital Service Assurance Innovator of the Year' award

Ooredoo has won the 'Digital Service Assurance Innovator of the Year' award for the Middle East and North Africa region by global digital software leader BMC Software, highlighting Qatar Data Centre's innovative digital transformation.

February 21: Ooredoo to showcase tech solutions at MWC

Ooredoo Group will showcase a wide range of transformative, advanced and emerging technology solutions, held under the theme of "Enriching People's Digital Lives" at the Mobile World Congress 2018 in Barcelona later this month.

February 15: OOREDOO DISCLOSES ITS FINANCIAL STATEMENTS FOR THE YEAR 2017

Ooredoo disclosed its financial statements for the period ended on 31.12.2017. The statements shows that the net profit is QR 1.9 Billion Compared to net profit amounting to QR 2.1 Billion for the same period of the previous year. Earnings per Share (EPS) amounted to QR 6.14 for the period ended December 31, 2017 to EPS amounted to QR 6.84 for the same period of the previous year.

Contact: 4400400

Physical Address: Cornish St. - West Bay - Doha 217

State/Province/Country: Qatar

Exchange: Qatar Stock Exchange

ISIN: QA0007227737

QA:ORDS; QD:ORDS; ORDS.QA

PermID: 4295886938

RIC: ORDS.QA

Source: www.BuySellSignals.com