Qatari stock report - Ooredoo Q.S.C.

QATAR

Ooredoo Q.S.C. up 2.4% in 2 days January 18, 2018 12:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Ooredoo Q.S.C. (QE:ORDS), Qatar's largest Telecommunication company by market cap, extended its gains on Thursday, rising an additional QAR1.88 (1.9%) to close at QAR99.06. The shares have lifted QAR2.34 (2.4%) over the past two trading days, compared with the QE Index which rose 14.4 points (0.2%) in the two days for a relative price increase of 2.3%. Cumulative volume in the 2 days was 0.8 times the average 2-day volume of 81,575 shares.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

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

SECTION 2 BEARISH SIGNALS

Fundamentals, Technicals, Low Performance Indicators, A negative finish to 2017

SECTION 3 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Aggregate Volumes, Prices and Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 OOREDOO Q.S.C. BULLISH SIGNALS

1.1 Fundamentals:

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.4. Compared with the rest of the market the stock is undervalued.

+ The company is cash rich with Cash to Market Capitalisation at 52.0%.

+ 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 9.6%. 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% [9.6%].

+ Return on Assets 3% [2.4%].

+ Dividend yield of 3.5% [2.1%].

1.3 Technicals:

Uptrend: The stock has risen for a second day.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 95.58 minus the 26-day EMA of 92.26 is positive 3.32 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ Rises to Falls: in the past month the number of rises outnumbered falls 15:5 or 3:1.

+ The present value of QAR1,000 (PV1000) invested five years ago in Ooredoo Q.S.C. is QAR1,248, including a capital gain of QAR65 and dividend reinvested of QAR183.

+ 5 years Multiplier in QAR = 1.248x

+ Compound Annual Growth Rate (CAGR) in QAR = 4.5%

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 $US1,248, including a capital gain of $US65 and dividend reinvested of $US183.

+ 5 years ago USD 1 equalled QAR 3.6403

+ 5 years Multiplier in USD = 1.248x

+ Compound Annual Growth Rate (CAGR) in USD = 4.5%

Jan 18, 2018: USD 1 equals QAR 3.64

1.4 High Performance Indicators:

DescriptionValueRank In Market
Price/MAP2001.07In Top Quartile
Price to Sales1In Top Quartile
Today's TurnoverQAR8.1 million (US$2.2 million)In Top Quartile
Price/MAP501.13In Top Quartile

SECTION 2 OOREDOO Q.S.C. BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 3.5%, divided by average yield of dividend yielding stocks in the QE Index of 3.7% is 95.9%. This suggests the stock is overvalued in dividend yield terms.

+ Net Profit margin is positive but falling in recent quarters. [Quarter ended, all figures in %]

QtrRevenue GrowthNet Profit GrowthNet Profit Margin
Sep 17-9.97.1
Jun 17--7.8

2.2 Technicals:

Overbought/Bearish/Resistance Signals:

+ The Relative Strength Index (RSI) of 94.9 has penetrated the overbought line of 70, suggesting the price gain of 9% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -8.2, suggesting the price is close to its 14-day high of QAR99.80.

+ The Money Flow Index [MFI] is 85.1 suggesting an overbought 14-day trend, being above 80. The Money Ratio of 5.7 suggests positive money flow was 5.7 times negative money flow.

2.3 Low Performance Indicators:

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

2.4 A negative finish to 2017

The stock has decreased QAR7.71 (or 7.8%) in FY 2017 to close at QAR90.90. The average daily volume of 75,947 shares in FY 2017 was 0.6 times the average daily volume in FY 2016.

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Ooredoo Q.S.C. is at a discount of 11.7% to its 12-month high of QAR112.24 on February 20, 2017. It is also at a premium of 27.0% to the 12-month low of QAR78.0 on November 28, 2017.

+ The present value of QAR1,000 (PV1000) invested one year ago in Ooredoo Q.S.C. is QAR990, comprising a capital loss of QAR42 and dividend reinvested of QAR33.

PV10001-week1-month1-year
ORDS.QE1,0311,150990
QE Index1,0051,080843

3.2 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 %
Jan 1899.063.5(4.2)3.4(0.9)
1 Yr ago103.440.3670.567.5
2 Yrs ago61.954(42.6)3.7(38.9)
3 Yrs ago107.884(16.7)3.1(13.6)
4 Yrs ago129.51539.25.444.6

Close 5 years ago QAR93.04

3.3 Aggregate Volumes, Prices and Turnover Period:

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

+ Doha: ORDS.QE 81,722 [VI of 1.1] volume 87.17% of aggregate. Price: QAR99.06.

+ Abu Dhabi: QTEL.ADX 12,029 [VI of 42.8] volume 12.83% of aggregate. Price: AED95.0. Using the current exchange rate of AED1 equals 0.9911QAR, The shares are at a 4.9% discount to the close price on Doha.

+ Aggregate volume: there were 93,751 shares of Ooredoo Q.S.C. worth QAR9.2 million traded today. The aggregate volume was 1.2 times average trading of 77,000 shares.

The turnover rate in the 12 months to date was 7.7% (or a turnover period of 12 years 11 months). This average length of ownership of the stock at 1.5 times the average holding period of 8 years 6 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 47,421 stocks] and Rank in the Middle East & Africa Region [out of 2,280 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)8.7B1,79049
Total Assets (US$)24.9B1,46856
Revenue (US$)9.1B1,45723
Net Profit (US$)602.3M1,50946
Return on Equity %14.97,655447
Net Profit Margin %8.513,051854
Price/Earnings14.27,475681
Yield %3.66,876729
PV$1000 (1Year) US$*99227,7381,077
US$* Change (1Year) %-5.428,4021,098

* 1 year ago USD 1 = QAR 3.65

Jan 18, 2018: USD 1 equals QAR 3.64

4.2 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 8/41 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 81.

+ Vanguard Total World Stock ETF 7457:

The stock was one of 7457 global stocks selected by Vanguard Total World Stock ETF (VT). As at November 30, 2017, the Vanguard Total World Stock ETF held 22,140 shares worth $US506,641 by value of the ETF's portfolio [Ranked 3160 out of 7457 by value and 4 out of 22 for Qatar].

SECTION 5 OOREDOO Q.S.C. FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)9.18.99.2
Pretax (USD M)859721.1846.3
Net (USD M)602.3581.9586.4
EPS (QAR)6.846.616.66

Net profit was up 3.5% from US$581.9 million in 2015 to US$602.3 million in 2016. Earnings Per Share (EPS) was up 3.5% from QAR6.61 to QAR6.84.

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (Dirham)
18 Jan 2018350
18 Jan 201730
18 Jan 2016400
18 Jan 2015400
18 Jan 2014500

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
Industry GroupTelecommunications Services
Economic SectorTelecommunication Services
Business SectorTelecommunications Services

6.3 Top Management

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

6.4 Issued Capital

Based on 320,320,000 issued shares the market capitalisation is QAR31.7 billion (US$8.7 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

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January 06: Ooredoo Oman, OADC sign cloud data deal

Ooredoo Oman, a top telecom provider in the Sultanate, has signed an agreement with Oman Aquaculture Development Company (OADC) to provide them with a full-range of cloud-based data services.

The agreement comes just one month after the introduction of Ooredoo's first locally hosted, enterprise-class Infrastructure as a Service (IaaS) virtual server, highlighting the growing popularity and efficiency of its advanced capabilities.

January 01: Ooredoo to boost revenue from internet services

The Omani Qatari Telecommunications Company, popularly known as Ooredoo, plans to enhance its revenue from internet services as traditional revenue streams like voice and short messaging services are on the decline.

"Data is on a steep growth path. The home broadband penetration level in Oman is at 58 per cent which means that there is still room for growth," said Ian Dench, chief executive officer of Ooredoo, to Times of Oman in an exclusive interview.

December 18 2017: Ooredoo event with EFQM focuses on Qatar pursuit for excellence

Ooredoo recently hosted an exclusive business event in collaboration with the European Foundation of Quality Management (EFQM) Middle East and Averroes Business Advisory & Services.

The event, which was held under the theme of "Qatar's Pursue for Excellence", aimed to promote excellence in Qatar in relation to Qatar's National Vision 2030, leverage the excellence experience, allow genuine exchanges with excellent organisations, and establish an excellence platform in Qatar.

December 18 2017: Ooredoo holds digital literacy programme

Ooredoo Oman, a top telecom provider, has partnered with Al Roya Press and Publishing to launch a digital literacy programme which will empower more than 900 women with essential IT skills.

Backed by Ooredoo's team of technical experts, the initiative will include 30 training sessions in nine Wilayats to help nurture the digital lifestyle benefits provided by smartphones, e-government services, and other personal electronic devices.

December 18 2017: Ooredoo to hold extraordinary AGM on December 20

Ooredoo will hold its extraordinary general assembly meeting at Ooredoo main headquarters in the West Bay on Wednesday, December 20, 2017.

Agenda for the extraordinary meeting includes approving the modification of article (20) of the company's articles of association, Ooredoo said in a regulatory filing to Qatar Stock Exchange (QSE), yesterday.

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