Qatari stock report - Ooredoo Q.S.C.
Ooredoo Q.S.C. drops 2.3% on high volatility August 16, 2018 12:30 AST
NEWS BITES - MIDDLE EAST & NORTH AFRICA
Ooredoo Q.S.C. (QE:ORDS), Qatar's largest Telecommunication company by market cap, traded between an intraday low of QAR70.10 and a high of QAR72.09, suggesting a trading opportunity between peaks and troughs. The average daily volatility of 1.8% places Ooredoo Q.S.C.'s stock in the 3rd quartile in the market, meaning it is the mildly volatile. Today its volatility (highest price minus lowest price/lowest price) of 2.8% was 1.5 times the average daily volatility of 1.8%, up from 0.2% on Wednesday and 0.9% on Tuesday. A fall in the price on high volatility is a bearish signal. Ooredoo Q.S.C.'s stock price has dropped QAR1.66 (2.3%) from its last trading session of August 15 to close at QAR70.38. Compared with the QE Index which fell 127.3 points (1.3%) in the day, the relative price change was -1.0%. The volume was 0.7 times the average daily trading volume of 79,072 shares. Its MCap is QAR22.5 billion (US$6.2 billion).
Highlights in today's Report:
SECTION 1 BEARISH SIGNALS
SECTION 2 BULLISH SIGNALS
SECTION 3 PRICE VOLUME DYNAMICS
SECTION 4 RELATED NEWS
SECTION 5 GLOBAL RANKING
SECTION 6 SUMMARY FINANCIALS
SECTION 7 PROFILE
SECTION 1 OOREDOO Q.S.C. BEARISH SIGNALS
+ In the last three months the stock has hit a new 52-week low once.
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 71.23 minus the 26-day EMA of 71.5 is negative 0.27 suggesting a bearish signal. Both EMA prices are falling, another bearish signal.
+ The present value of QAR1,000 (PV1000) invested one year ago in Ooredoo Q.S.C. is QAR857, comprising a capital loss of QAR178 and dividend reinvested of QAR35.
+ The present value of QAR1,000 (PV1000) invested five years ago in Ooredoo Q.S.C. is QAR670, including a capital loss of QAR426 and dividend reinvested of QAR96.
+ 5 years Multiplier in QAR = 0.67x
+ Compound Annual Growth Rate (CAGR) in QAR = -7.7%
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 $US671, including a capital loss of $US425 and dividend reinvested of $US96.
+ 5 years ago USD 1 equalled QAR 3.6443
+ 5 years Multiplier in USD = 0.671x
+ Compound Annual Growth Rate (CAGR) in USD = -7.7%
Aug 16, 2018: USD 1 equals QAR 3.64
Low Performance Indicators and rank of Ooredoo Q.S.C. in the Qatar market:
|Description||ORDS Value||Rank In Market|
|Total Debt to Equity||1.7||In Bottom 3%|
|Return on Capital Employed [ROCE] %||4.9||In Bottom Quartile|
|Price/MAP200||0.88||In Bottom Quartile|
|Volatility %||2.8||In Bottom Quartile|
|Price Change %||-2.3||In Bottom Quartile|
|Price/MAP50||0.98||In Bottom Quartile|
SECTION 2 OOREDOO Q.S.C. BULLISH SIGNALS
High Performance Indicator and rank of Ooredoo Q.S.C. in the Qatar market:
|Description||ORDS Value||Rank In Market|
|Price to Sales||0.7||In Top 9%|
+ The relative yield of ORDS, defined by its yield of 5%, divided by average yield of dividend yielding stocks in the QE Index of 3.4% is 145.7%. 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 0.3. 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 [ROE] of 12.2% is better than sector average of 8.5%. ROE 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.
2.2 Undervaluation [compared with sector average]:
+ Return on Equity 12.2% [8.5%].
+ Return on Assets 2.7% [2.2%].
+ Dividend yield of 5% [3.7%].
SECTION 3 OOREDOO Q.S.C. PRICE VOLUME DYNAMICS
+ Ooredoo Q.S.C. is at a discount of 28.8% to its 12-month high of QAR98.84 on January 24. It is also at a premium of 7.1% to the 12-month low of QAR65.71 on May 21.
3.2 Aggregate Volumes and Prices:
[Volume Index or VI in brackets; 1 is average]
+ Muscat: ORDS.MSM 352,499 [VI of 1.4] volume 86.31% of aggregate. Price: 50.0 Baisa.
+ Doha: ORDS.QE 55,925 [VI of 0.7] volume 13.69% of aggregate. Price: QAR70.38.
+ Aggregate volume: there were 408,424 shares of Ooredoo Q.S.C. worth QAR5.6 million traded today. The aggregate volume was 1.2 times average trading of 330,000 shares.
The turnover rate in the 12 months to date was 7.04% (or a turnover period of 14 years 2 months). This average length of ownership of the stock at 1.4 times the average holding period of 9 years 10 months for stocks in the QE Index suggests a larger number of core investors, making a long-term investment safer.
3.3 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 1 out of 5 years.
|ORDS||Close (QAR)||Dividends (QAR)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||85.57||3.5||(8.8)||3.7||(5.0)|
|2 Yrs ago||93.8||0.3||26.8||0.4||27.2|
|3 Yrs ago||73.97||4||(35.0)||3.5||(31.5)|
|4 Yrs ago||113.75||4||(7.3)||3.3||(4.0)|
Close 5 years ago QAR122.65
+ Beta: the Beta of Ooredoo Q.S.C. stock is 0.7. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
3.5 The Past Two Years
+ Ooredoo Q.S.C. (QE:ORDS), has decreased QAR24.25 (25.6%) over the past two years, compared with the QE Index which fell 1,904.6 points (16.7%) in the two years for a relative price change of -8.9%. The shares fell QAR9.06 (9.6%) a year ago and QAR15.19 (17.8%) in the past year to close at QAR70.38 today.
SECTION 4 OOREDOO Q.S.C. RELATED NEWS
+ BSS/News Bites:
Ooredoo Q.S.C. is placed 29/40 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 29.
SECTION 5 OOREDOO Q.S.C. GLOBAL RANKING
Global Rank [out of 47,644 stocks] and Rank of Ooredoo Q.S.C. in the Middle East & Africa Region [out of 2,279 stocks]
|Description||Value||Global Rank||In MEA Region|
|Total Assets (US$)||24.6B||1,511||60|
|Net Profit (US$)||540.3M||1,766||55|
|Return on Equity %||12.2||10,535||567|
|Net Profit Margin %||7.3||14,799||910|
|PV$1000 (1Year) US$*||859||24,721||1,098|
|US$* Change (1Year) %||-16.5||25,609||1,154|
* 1 year ago USD 1 = QAR 3.65
Aug 16, 2018: USD 1 equals QAR 3.64
SECTION 6 OOREDOO Q.S.C. SUMMARY FINANCIALS
6.1 Dividend History
+ Trailing 12 months dividend has deteriorated from QAR4.0 in 2014 to QAR3.50 in 2018.
6.2 Financials Summary (Past 3 years)
|Year ended||Dec 2017||Dec 2016||Dec 2015|
|Sales (USD B)||9||9.1||8.9|
|Pretax (USD M)||878.2||859||721.1|
|Net (USD M)||540.3||602.3||581.9|
+ 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.
SECTION 7 OOREDOO Q.S.C. PROFILE
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.
7.2 Top Management
The chairman is H. E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani and the chief financial officer is Abdullatif Dafallah.
7.3 Issued Capital
Based on 320,320,000 issued shares the market capitalisation is QAR22.5 billion (US$6.2 billion).
Physical Address: Cornish St. - West Bay - Doha 217
Exchange: Qatar Stock Exchange
Economic Sector: Telecommunication Services
Business Sector: Telecommunications Services
Industry Group: Telecommunications Services
QA:ORDS; QD:ORDS; ORDS.QA