Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: Almarai increases losses by 0.4%, led Agriculture & food industries sector lower 18 January 2018 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).

Almarai, Saudi Arabia's largest agriculture & food industries company by market capitalisation, has decreased 0.2% to trade at SAR54.0 vs. the Agriculture & food industries sector which weakened 14.1 points (or 0.1%) to 12,216.4. Representing a weighting of about 54.8% of the sector, the stock accounted for 84.3% of today's loss. The shares have underperformed 84% of the market in the past month. Trading volume was 60% of average at the end of the day. Compared with the All Share Index (TASI) which fell 0.7 points (or 0.01%) in the day, this represented a relative price change of -0.2%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.33 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The 4.2% premium to 12-month low of SAR51.80 against the 31.3% discount to high of SAR78.64 suggests the stock continues to push for new lows.

+ The price dropped 3.6% in the last month.

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

Overvaluation:

+ Price/Sales of 3.7 [1.9]

+ Price to Book of 4.5 [3.4]

+ Dividend yield of 1.3% [1.5%]

Other Bearish Signals include:

+ Net profit margin has averaged 13.5% in the last 3 years. This is lower than the sector average of 14.1% and suggests a low margin of safety.

Note

Bullish Signals:

Interest cover is less leveraged at 7.1 times.

Tobin's Q Ratio is 1.9. Compared with the rest of the market the stock is undervalued.

As per the Du Pont analysis, Return on Equity of 16.0% is better than sector average of 13.0%.

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

Undervaluation:

Return on Equity 16.0% [13.0%]

Return on Assets 7.2% [5.8%]

Return on Capital Employed 10.4% [6.4%]

TODAY'S ALERT

Afternoon Alert: Almarai decreases 0.6%, leads Agriculture & food industries sector lower

18 January 2018 14:39 AST

Almarai Company (TASI:2280) has decreased 0.6% to trade at SAR53.80 vs. the Agriculture & food industries sector which weakened 30.6 points (or 0.2%) to 12,199.9. Representing a weighting of about 54.6% of the sector, the stock accounted for the loss. The shares have underperformed 86% of the market in the past month. Trading volume was 36% of average so far today.

RECENT ALERTS

CLOSING UPDATE: Almarai keeps rising: up 3.0% in 3 days

17 January 2018 16:47 AST

Almarai, Saudi Arabia's largest agriculture & food industries company by market capitalisation, extended its gains on Wednesday, rising an additional 20.0 hallalah (or 0.4%) to trade at SAR54.10. Trading volume was 1.3 times average at the end of the day. The shares have risen SAR1.60 (or 3.0%) over the past three trading days vs. the All Share Index (TASI) which has risen 1.3% in the same period.

Morning Alert: Almarai decreases 0.2%, leads Agriculture & food industries sector lower

17 January 2018 11:30 AST

Almarai Company (TASI:2280) has decreased 0.2% to trade at SAR53.80 vs. the Agriculture & food industries sector which weakened 6.2 points (or 0.05%) to 12,192.6. Representing a weighting of about 54.7% of the sector, the stock accounted for the loss. The shares have underperformed 85% of the market in the past month. Trading volume was 35% of average so far today.

Almarai Company (SA:2280; SAU:2280; AB:2280)

ISIN: SA000A0ETHT1

PermID: 4295887336

Source: www.BuySellSignals.com