Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: Saudi Ground Services dropped 2.2%, led Transport sector lower all day 26 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).

Saudi Ground Services, Saudi Arabia's 2nd largest transport company by market capitalisation, has dropped 2.2% to trade at SAR45.0 vs. the Transport sector which weakened 106.3 points (or 1%) to 10,372.6. Representing a weighting of about 32.5% of the sector, the stock accounted for 69.9% of today's loss. Trading volume was 93% of average at the end of the day. Compared with the All Share Index (TASI) which fell 27.5 points (or 0.4%) in the day, this represented a relative price change of -1.8%.

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

Overvaluation:

+ Price/Earnings of 12.3 [9.4]

+ Price/Sales of 3.1 [2.1]

+ Price to Book of 4 [1.7]

Bearish Signals:

+ Tobin's Q Ratio is 2.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom 7% of stocks by value of Q Ratio.

Note

Saudi Ground Services today is at a discount of 32.2% to the 12-month high of SAR66.36 on 19 Dec, 2016. It is at a premium of 23.1% to the 12-month low of SAR36.54 on 18 Oct, 2016.

Bullish Signals:

The positive 0.16 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The price lifted 2.3% in the last week and 2.3% in the last month.

The company is cash rich with Cash to Market Capitalisation at 10.2%.

Total Liabilities/EBITDA of 1.1 is comfortably below the Joseph Piotroski benchmark of <5.

As per the Du Pont analysis, Return on Equity is high at 22.5%.

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

Undervaluation:

Return on Equity 22.5% [18.6%]

Return on Assets 17.9% [9.2%]

Return on Capital Employed 21.4% [10.5%]

TODAY'S ALERT

Morning Alert: Saudi Ground Services drops 2.2%, leads Transport sector lower

26 July 2017 11:22 AST

Saudi Ground Services Co (TASI:4031) has dropped 2.2% to trade at SAR45.0 vs. the Transport sector which weakened 84.6 points (or 0.8%) to 10,394.3. Representing a weighting of about 32.4% of the sector, the stock accounted for 87.0% of today's loss. The shares have underperformed 83% of the market in the past six months. Trading volume was 1.2 times average so far today.

Saudi Ground Services Co (SA:4031; SAU:4031; AB:4031)

ISIN: SA13R051UVH9

Source: www.BuySellSignals.com