Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: Red Sea International decreased gains by 0.8%, led Building & construction sector higher 20 July 2017 16:47 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

This is an end of day Alert, produced after today's Saudi Arabian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Red Sea International, Saudi Arabia's 4th largest building & construction company by market capitalisation, has lifted 2.5% to trade at SAR19.83 vs. the Building & construction sector which strengthened 7.5 points (or 0.4%) to 2,064.9. Representing a weighting of about 8.6% of the sector, the stock accounted for 60.4% of today's gain. Trading volume was 1.7 times average at the end of the day. Compared with the All Share Index (TASI) which rose 31.6 points (or 0.4%) in the day, this represented a relative price increase of 2.1%.

Technical indicators complementing today's significant uptrend:

+ The price increased 0.8% in the last week and lifted 3.9% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 13.5 [34.5]

+ Return on Equity 8.7% [2.9%]

+ Return on Assets 5.8% [1.3%]

+ Return on Capital Employed 9.3% [3.8%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 8.4 times.

+ Total Liabilities/EBITDA of 4.9 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.8. Compared with the rest of the market the stock is undervalued.

+ As per the Du Pont analysis, Return on Equity of 8.7% is better than sector average of 2.9%.

Note

Red Sea International today is at a discount of 34.6% to the 12-month high of SAR30.34 on 12 Dec, 2016. It is at a premium of 7.4% to the 12-month low of SAR18.46 on 19 Jun, 2017.

Bearish Signals:

The negative 0.54 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

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

Net profit margin has averaged 10.1% in the last 3 years. This is lower than the sector average of 11.4% and suggests a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 1.1 [0.7]

Price to Book of 1.2 [1.0]

TODAY'S ALERT

Afternoon Alert: Red Sea International lifts 3.3%, leads Building & construction sector higher

20 July 2017 14:34 AST

Red Sea International Co (TASI:4230) has lifted 3.3% to trade at SAR19.98 vs. the Building & construction sector which strengthened 10.0 points (or 0.5%) to 2,067.5. Representing a weighting of about 8.6% of the sector, the stock accounted for 58.3% of today's gain. Trading volume was 2.1 times average so far today.

RECENT ALERT

Morning Alert: Red Sea International inches higher, resistance at 12-day EMA

16 July 2017 11:22 AST

Red Sea International Co (TASI:4230) has increased 0.9% but fell short of the 12-day Exponential Moving Average [EMA] of SAR19.92.

Red Sea International Co (SA:4230; SAU:4230; AB:4230)

ISIN: SA000A0KEWM4

PermID: 4295887347

Source: www.BuySellSignals.com