Qatari stock report - Ooredoo Q.S.C.

QATAR

Ooredoo Q.S.C. decreases October 19, 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 decreased 60.0 Dirham (0.7%) from its last trading session of October 18 to close at QAR85.52. Compared with the QE Index which rose 28.1 points (0.3%) in the day, the relative price change was -1.0%. The volume was 0.8 times the average daily trading volume of 82,509 shares.

Highlights in today's Report:

SECTION 1 BEARISH SIGNALS

Fundamentals, Technicals, Low Performance Indicators

SECTION 2 BULLISH SIGNALS

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

SECTION 3 PRICE VOLUME DYNAMICS

Volatility, 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. BEARISH SIGNALS

1.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 4.1%, divided by average yield of dividend yielding stocks in the QE Index of 4.1% is 98.8%. This suggests the stock is overvalued in dividend yield terms.

1.2 Technicals:

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

+ The present value of QAR1,000 (PV1000) invested one year ago in Ooredoo Q.S.C. is QAR924, comprising a capital loss of QAR106 and dividend reinvested of QAR31.

PV10001-week1-month1-year
ORDS.QE1,0021,048924
QE Index980983782

1.3 Low Performance Indicators:

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

SECTION 2 OOREDOO Q.S.C. BULLISH SIGNALS

2.1 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 60.2%.

+ 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 9.8%. 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.

2.2 Undervaluation [compared with sector average]:

+ Return on Equity 14.9% [9.8%].

+ Return on Assets 3% [2.4%].

+ Dividend yield of 4.1% [2.4%].

2.3 Technicals:

+ The present value of QAR1,000 (PV1000) invested five years ago in Ooredoo Q.S.C. is QAR1,135, including a capital loss of QAR32 and dividend reinvested of QAR167.

+ 5 years Multiplier in QAR = 1.135x

+ Compound Annual Growth Rate (CAGR) in QAR = 2.6%

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 $US1,133, including a capital loss of $US34 and dividend reinvested of $US166.

+ 5 years ago USD 1 equalled QAR 3.6403

+ 5 years Multiplier in USD = 1.133x

+ Compound Annual Growth Rate (CAGR) in USD = 2.5%

Oct 19, 2017: USD 1 equals QAR 3.65

2.4 High Performance Indicators:

DescriptionValueRank In Market
Volatility %0.2In Top 8%
Price/MAP500.99In Top Quartile
Price to Sales0.8In Top Quartile
% Prem to Vol Wtd Price2.5In Top Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Volatility:

+ Ooredoo Q.S.C. is at a discount of 23.8% to its 12-month high of QAR112.24 on February 20. It is also at a premium of 6.9% to the 12-month low of QAR80.0 on September 13.

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 %
Oct 1985.523.5(10.6)3.7(7.0)
1 Yr ago95.710.328.20.428.6
2 Yrs ago74.674(35.9)3.4(32.4)
3 Yrs ago116.44(6.2)3.2(3.0)
4 Yrs ago124.11540.55.746.2

Close 5 years ago QAR88.31

3.3 Aggregate Volumes, Prices and Turnover Period:

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

+ Doha: ORDS.QE 63,469 [VI of 0.8] volume 96.67% of aggregate. Price: QAR85.52.

+ Abu Dhabi: QTEL.ADX 2,184 volume 3.33% of aggregate. Price: AED80.0. Using the current exchange rate of AED1 equals 0.9862QAR, The shares are at a 7.7% discount to the close price on Doha.

+ Aggregate volume: there were 65,653 shares of Ooredoo Q.S.C. worth QAR5.6 million traded today. The aggregate volume was 0.8 times average trading of 82,000 shares.

The turnover rate in the 12 months to date was 9.02% (or a turnover period of 11 years 29 days). This average length of ownership of the stock at 1.5 times the average holding period of 7 years 3 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 47,821 stocks] and Rank in the Middle East & Africa Region [out of 2,304 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)7.5B1,87646
Total Assets (US$)24.8B1,46156
Revenue (US$)9.1B1,44519
Net Profit (US$)601M1,49144
Return on Equity %14.97,455460
Net Profit Margin %8.512,909861
Price/Earnings12.67,234629
Yield %4.15,905640
PV$1000 (1Year) US$*92427,2971,220
US$* Change (1Year) %-9.227,9261,245

* 1 year ago USD 1 = QAR 3.65

Oct 19, 2017: USD 1 equals QAR 3.65

4.2 Independent Ratings

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

It is placed 9/39 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 78.

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)857.4719.8844.7
Net (USD M)601.2580.8585.2
EPS (QAR)6.846.616.66

Net profit was up 3.5% from US$580.8 million in 2015 to US$601.2 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)
19 Oct 2017350
19 Oct 201630
19 Oct 2015400
19 Oct 2014400
19 Oct 2013500

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
Economic SectorTelecommunication Services
Business SectorTelecommunications Services
Industry GroupTelecommunications Services

6.3 Top Management

The chief executive officer is Nasser A. Marafih.

6.4 Issued Capital

Based on 320,320,000 issued shares the market capitalisation is QAR27.4 billion (US$7.5 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

October 02: OOREDOO ANNOUNCES DATE TO PAY INTEREST TO BONDHOLDERS

Ooredoo announces that Ooredoo International Finance Limited (OIFL), its wholly-owned subsidiary, pursuant to the Terms and Conditions of the Notes and the Final Terms, will pay its Global Medium Term Note (GMTN) holders' interest payment 19 Oct 2017.

October 02: OREDOO DECIDES TO DISCLOSE THE 3RD QUARTER FINANCIAL STATEMENTS ON OCTOBER 29, 2017

Ooredoo announces its intent to disclose the 3rd quarter financial statements for the period ending September 30, 2017, on 29 October 2017.

September 26: OOREDOO ANNOUNCES THE RESIGNATION OF INDOSAT OOREDOO CEO

Ooredoo announced that Indosat Ooredoo has accepted the resignation of its Chief Executive Officer Mr. Alexander Rusli. According to the procedures pursued in such cases, Indosat Ooredoo will hold an Extraordinary General Meeting in November 2017 to appoint a new Chief Executive Officer for the company.

September 20: OOREDOO ANNOUNCES CLOSURE OF DELISTING OF OOREDOO GDR FROM THE LONDON STOCK EXCHANGE

Ooredoo ORDS announced that the de-listing process of Ooredoo GDR (Global Depositary Receipt) from the London Stock Exchange has now closed, effective from 31 August, 2017. The primary reason for the delisting was that international investors are now easily able to purchase Ooredoo securities on the Qatar Exchange.

September 14: OOREDOO: FITCH RATINGS REVISION

Ooredoo notes Fitch Ratings' revision of Ooredoo's long term corporatecredit ratings from 'A+' to 'A' and its Negative Outlook.

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