Qatari stock report - Ooredoo Q.S.C.

QATAR

Ooredoo Q.S.C. increases 1.9% on firm volume June 22, 2017 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 QAR1.70 (1.9%) from its last trading session of June 21 to close at QAR90.70. Compared with the QE Index which rose 236.1 points (2.7%) in the day, the relative price change was -0.8%. The rise has been propped up by firm volume of 1.4 times the average daily volume of 109,452 shares.

SECTION 1

OOREDOO Q.S.C. BULLISH SIGNALS

1.1 Fundamentals:

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.3. Compared with the rest of the market the stock is undervalued.

+ The company is cash rich with Cash to Market Capitalisation at 56.8%.

+ Net profit margin has averaged 7.3% in the last 3 years. This is better than the sector average of 6.5% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 14.9% is better than sector average of 9.9%. This is computed as net profit margin of 8.5% times asset turnover [sales/assets] of 0.37 times leverage factor [total assets/shareholders' equity] of 4.1.

1.2 Undervaluation [compared with sector average]:

+ Return on Equity 14.9% [9.9%].

+ Return on Assets 3% [2.4%].

+ Dividend yield of 0.4% [0.2%].

1.3 Technicals:

Uptrend: The stock rose 1.9% on high volatility today and expanding price range.

1.4 Oversold/Bullish/Support Signals:

+ The Stochastic indicator of 10.4 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.

1.5 High Performance Indicator:

DescriptionValueRank In Market
Price to Sales0.9In Top Quartile

SECTION 2

OOREDOO Q.S.C. BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 0.4%, divided by average yield of dividend yielding stocks in the QE Index of 3.6% is 10.8%. This suggests the stock is overvalued in dividend yield terms.

2.2 Technicals:

+ The 3.7% premium to 12-month low of QAR87.50 against the 21.6% discount to high of QAR115.71 suggests the stock continues to push for new lows.

+ The present value of QAR1,000 (PV1000) invested five years ago in Ooredoo Q.S.C. is QAR847, including a capital loss of QAR156 and dividend reinvested of QAR3.

+ 5 years Multiplier in QAR = 0.847x

+ Compound Annual Growth Rate (CAGR) in QAR = -3.3%

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 $US839, including a capital loss of $US164 and dividend reinvested of $US3.

+ 5 years ago USD 1 equalled QAR 3.6403

+ 5 years Multiplier in USD = 0.839x

+ Compound Annual Growth Rate (CAGR) in USD = -3.5%

Jun 22, 2017: USD 1 equals QAR 3.68

2.3 Low Performance Indicators:

DescriptionValueRank In Market
Return on Capital Employed [ROCE] %4.5In Bottom Quartile
Price/Earnings/Growth3.8In Bottom Quartile
Total Debt to Equity1.8In Bottom 3%

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 152,316 shares worth QAR13.8 million (US$3.8 million) traded today. In the past week, volume was 0.7 times average and the shares were down 2.5%.

+ The present value of QAR1,000 (PV1000) invested one year ago in Ooredoo Q.S.C. is QAR1,033, comprising a capital gain of QAR30 and dividend reinvested of QAR3.

PV10001-week1-month1-year
ORDS.QE9758561,033
QE Index978911909

3.2 Performance Indicator:

DescriptionValueRank In Market
Today's TurnoverQAR13.8 million (US$3.8 million)In 2nd Quartile

3.3 Beta:

+ Beta: the Beta of Ooredoo Q.S.C. stock is 1.3. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 9.8% (or a turnover period of 10 years 2 months). This average length of ownership of the stock at 1.3 times the average holding period of 7 years 7 months for stocks in the QE Index suggests a larger number of core investors, making a long-term investment safer.

SECTION 4

RANKING

4.1 Global Rank [out of 47,400 stocks] and Rank in the Middle East & Africa Region [out of 2,287 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)7.9B1,71645
Total Assets (US$)24.6B1,39955
Revenue (US$)9B1,40518
Net Profit (US$)596.4M1,43342
Return on Equity %14.97,264474
Net Profit Margin %8.512,438876
Price/Earnings13.07,188664
Yield %0.418,384941
PV$1000 (1Year) US$*1,02325,506930
US$* Change (1Year) %-0.624,908904

* 1 year ago USD 1 = QAR 3.64

Jun 22, 2017: USD 1 equals QAR 3.68

4.2 Independent Ratings

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

It is placed 7/40 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 83.

SECTION 5

OOREDOO Q.S.C. FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)98.99.2
Pretax (USD M)853.9716.9841.3
Net (USD M)598.8578.5582.9
EPS (QAR)6.846.616.66

5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

Ooredoo Q.S.C. Net Profit up 3.5%

Favourable Changes:

+ Net profit up 3.5% from QAR2.1b ($US581.6m) to QAR2.2b ($US602.2m)

+ EPS up 3.5% from QAR6.61 ($US1.81) to QAR6.84 ($US1.88).

+ EBIT Margin up from 8.2% to 9.6%.

+ EBIT to total assets up from 2.8% to 3.5%.

+ Total revenue to total assets up from 0.3 to 0.4.

+ Sales and marketing expenses to Sales down from 24.1% to 22.4%.

+ Profit before tax to Sales up from 8.2% to 9.6%.

+ Debt to Equity down 6.1% from 2.0 to 1.8.

+ Current ratio up 21% from 1.0 to 1.2.

+ Retained earnings to total assets up from 10.8% to 12.4%.

Unfavourable Changes:

+ Total current assets to Total Assets down from 28.1% to 27.3%.

+ Cash to Total Assets down from 19.3% to 18.2%.

+ Total Liabilities to Operating Cash Flow of 6.7 compares unfavourably with the Joseph Piotroski benchmark of <4.

Note:

+ Total revenue steady at QAR33.1b ($US9.1b).

+ Tax expenses to Sales up from 1% to 1.2%.

+ Total liabilities to Total assets steady at 0.7.

+ Total non-current assets to Total Assets up from 71.9% to 72.7%.

+ Fixed Assets to Total Assets steady at 35.6%.

+ Intangibles to Total Assets up from 32.2% to 33%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (Dirham)
22 Jun 201735

SECTION 6

OOREDOO Q.S.C. PROFILE

6.1 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.

6.2 Industry & Sector

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

6.3 Top Management

The chief executive officer is Nasser A. Marafih and the chief financial officer is Greg Young.

6.4 Issued Capital

Based on 320,320,000 issued shares the market capitalisation is QAR29.1 billion (US$7.9 billion).

SECTION 7

STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

June 01: Ooredoo supports SMEs forum in Oman

May 31: OOREDOO ANNOUNCES ITS INTENT TO DELIST OOREDOO GDR FROM THE LONDON STOCK EXCHANGE

May 24: OOREDOO ANNOUNCES DATE TO PAY INTEREST TO BONDHOLDERS

May 09: OOREDOO ANNOUNCES DATE TO PAY PROFITS TO SUKUK HOLDERS

April 27: OOREDOO DISCLOSES ITS FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2017.

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

Source: www.BuySellSignals.com