Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: Mouwasat Medical Services increased further 0.3%, led Retailing 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).

Mouwasat Medical Services, Saudi Arabia's 3rd largest retailer company by market capitalisation, has climbed 4.0% to trade at SAR153.52 vs. the Retailing sector which strengthened 332.9 points (or 1.7%) to 19,963.2. Representing a weighting of about 13.5% of the sector, the stock accounted for 32.0% of today's gain. Trading volume was 63% of 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 3.6%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.89 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 5.2% discount to 12-month high of SAR162.0 against the 43.3% premium to 12-month low of SAR107.11 suggests the stock continues to push for new highs.

+ In the last three months the stock has hit a new 52-week high twice.

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

Undervaluation:

+ Return on Equity 21.5% [16.5%]

+ Return on Assets 13.2% [8.9%]

+ Return on Capital Employed 17.3% [14.0%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 46.2 times.

+ Total Liabilities/EBITDA of 2.4 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 23.2% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 21.5%. Also, this has improved from 19.8% last year.

Note

Bearish Signals:

The price dropped 2.1% in the last week.

Tobin's Q Ratio is 3.6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 3% of stocks by value of Q Ratio.

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

Overvaluation:

Price/Sales of 6.2 [1.6]

Price to Book of 6 [4.2]

Dividend yield of 1.6% [2.6%]

TODAY'S ALERTS

Afternoon Alert: Mouwasat Medical Services lifts 3.7%, leads Retailing sector higher

20 July 2017 14:34 AST

Mouwasat Medical Services Company (TASI:4002) has lifted 3.7% to trade at SAR153.0 vs. the Retailing sector which strengthened 251.7 points (or 1.3%) to 19,882.0. Representing a weighting of about 13.5% of the sector, the stock accounted for 38.8% of today's gain. Trading volume was 1.6 times average so far today.

Morning Alert: Mouwasat Medical Services increases 1.1%, leads Retailing sector higher

20 July 2017 11:22 AST

Mouwasat Medical Services Company (TASI:4002) has increased 1.1% to trade at SAR149.20 vs. the Retailing sector which strengthened 44.7 points (or 0.2%) to 19,675.0. Representing a weighting of about 13.3% of the sector, the stock accounted for 63.6% of today's gain. Trading volume was 2.6 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Mouwasat Medical Services keeps sliding: down 3.8% in 3 days

17 July 2017 16:47 AST

Mouwasat Medical Services, Saudi Arabia's 2nd largest retailer company by market capitalisation, extended its slide on Monday, shedding an additional SAR2.99 (or 1.9%) to trade at SAR152.01. Trading volume was 15% of average at the end of the day.

Afternoon Alert: Mouwasat Medical Services keeps sliding: down 3.4% in 3 days

17 July 2017 14:34 AST

Mouwasat Medical Services Company (TASI:4002) extended its slide on Monday, shedding an additional SAR2.40 (or 1.5%) to trade at SAR152.60. Trading volume was 39% of average so far today.

Mouwasat Medical Services Company (SA:4002; SAU:4002; AB:4002)

ISIN: SA12C051UH11

PermID: 5000432495

Source: www.BuySellSignals.com