Qatari stock report - Ooredoo Q.S.C.

QATAR

Ooredoo Q.S.C. increases 1.4% August 17, 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 QAR1.28 (1.4%) from its last trading session of August 16 to close at QAR90.45. Compared with the QE Index which rose 54.8 points (0.6%) in the day, the relative price increase was 0.8%. The volume was 0.5 times the average daily trading volume of 98,261 shares.

SECTION 1

OOREDOO Q.S.C. BULLISH SIGNALS

1.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 3.9%, divided by average yield of dividend yielding stocks in the QE Index of 3.8% is 102.1%. This suggests the 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.

+ The company is cash rich with Cash to Market Capitalisation at 57.0%.

+ 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 9.9%. 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 3.9% [2.2%].

1.3 Technicals:

+ The present value of QAR1,000 (PV1000) invested five years ago in Ooredoo Q.S.C. is QAR1,133, including a capital loss of QAR33 and dividend reinvested of QAR166.

+ 5 years Multiplier in QAR = 1.133x

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

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 $US1,131, including a capital loss of $US35 and dividend reinvested of $US166.

+ 5 years ago USD 1 equalled QAR 3.6403

+ 5 years Multiplier in USD = 1.131x

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

Aug 17, 2017: USD 1 equals QAR 3.65

1.4 Oversold/Bullish/Support Signals:

+ The Relative Strength Index (RSI) of 27.1 has breached the oversold line of 30, suggesting the price decrease of 4.8% in the last 14 days is unusually high.

+ The stock is oversold according to the Williams % R indicator of -82.8, suggesting the price is close to its 14-day low of QAR88.90.

+ The Stochastic indicator of 7.1 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 Indicators:

DescriptionValueRank In Market
Price Change %1.4In Top Quartile
Price to Sales0.9In Top Quartile
Volatility %0.9In Top Quartile

SECTION 2

OOREDOO Q.S.C. BEARISH SIGNALS

2.1 Technicals:

+ The 4.5% premium to 12-month low of QAR86.53 against the 19.4% discount to high of QAR112.24 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 QAR940, comprising a capital loss of QAR92 and dividend reinvested of QAR31.

PV10001-week1-month1-year
ORDS.QE977973940
QE Index978953798

2.2 Low Performance Indicators:

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

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 52,089 shares worth QAR4.7 million (US$1.3 million) traded today. In the past week, volume was 0.4 times average and the shares were down 2.3%.

3.2 Performance Indicator:

DescriptionValueRank In Market
Today's TurnoverQAR4.7 million (US$1.3 million)In 2nd Quartile

3.3 Moving Annual Return

ORDSClose (QAR)Dividends (QAR)Capital Gain / (Loss) %% YieldAnnual Return %
August 1790.453.5(9.2)3.5(5.7)
1 Yr ago99.580.330.70.431.1
2 Yrs ago76.214(35.7)3.4(32.3)
3 Yrs ago118.534(7.3)3.1(4.1)
4 Yrs ago127.8536.65.341.9

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 9.4% (or a turnover period of 10 years 7 months). This average length of ownership of the stock at 1.4 times the average holding period of 7 years 9 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 47,596 stocks] and Rank in the Middle East & Africa Region [out of 2,284 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)7.9B1,76348
Total Assets (US$)24.8B1,45056
Revenue (US$)9.1B1,43021
Net Profit (US$)601M1,47144
Return on Equity %14.97,347462
Net Profit Margin %8.512,625862
Price/Earnings13.06,773684
Yield %3.96,175641
PV$1000 (1Year) US$*93926,5061,123
US$* Change (1Year) %-9.627,0921,147

* 1 year ago USD 1 = QAR 3.65

Aug 17, 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 5/38 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 87.

SECTION 5

OOREDOO Q.S.C. FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)98.99.1
Pretax (USD M)852715.3839.4
Net (USD M)597.5577.2581.6
EPS (QAR)6.846.616.66

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (Dirham)
17 Aug 2017350
17 Aug 201630
17 Aug 2015400
17 Aug 2014400
17 Aug 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
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 billion (US$7.9 billion).

SECTION 7

STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

July 27: OOREDOO DISCLOSES INTERIM FINANCIAL STATEMENT FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2017

Ooredoo disclosed its reviewed financial statements for the period ended on June 30, 2017. The statements shows that the net profit is QR 1,097 million Compared to net profit amounting to QR 1,462 million For the same period of the previous year. The Earnings per Share (EPS) amounted to QR 3.42 For the period ended June 30, 2017 to EPS amounted to QR 4.56 for the same period of the previous year.

July 12: MOODY'S AFFIRMS A2 LONG-TERM ISSUER RATING OF OOREDOO

Ooredoo announces that Moody's Investor Service has affirmed the A2 long-term issuer rating of Ooredoo Q.S.P.C. (Ooredoo. Moody's stated that the affirmation of the A2 ratings with a stable outlook reflects Ooredoo's robust standalone credit profile with around 70% of EBITDA generated outside of Qatar in 2016.

July 12: OOREDOO ANNOUNCES DATE TO PAY INTEREST TO BONDHOLDERS

Ooredoo Q.S.C. 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 payments on 31 July 2017.

July 06: Ooredoo grows entrepreneurship programme with first partner in Salalah

Driving the growth of the Sultanate's entrepreneurial community, Ooredoo signed Shamookh Gulf Global Trading as the first partner in Oman's southernmost governorate to join its entrepreneur programme. Under the agreement, Ooredoo will deliver essential skill oriented training, funding assistance and preference as Partners of Ooredoo's B2B Sales Team.

Sultan bin Ahmed al Wahaibi, Chief Business and Wholesale Officer at Ooredoo, said, "Representing 90 per cent of all companies in Oman, supporting SMEs is integral to the future growth and sustainability of the Sultanate's overall economy.

June 22: OOREDOO DISCLOSES THE SEMI-ANNUAL FINANCIALS ON 26 JULY, 2017

Ooredoo has announced its intent to disclose the reviewed financial reports for the period ending June 30, 2017 on Wednesday 26/07/2017.

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