Saudi Arabian stock report - Riyad Bank

SAARAB

Riyad Bank keeps rising, up 8.6% in 6 days April 19, 2018 15:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Riyad Bank (TASI:1010), Saudi Arabia's 5th largest Bank by market cap, extended its gains on Thursday, rising an additional 22.0 hallalah (1.5%) to close at SAR14.94. The shares have jumped SAR1.18 (8.6%) over the past six trading days, compared with the All Share Index (TASI) which rose 456.8 points (5.8%) in the six days for a relative price increase of 2.7%. Cumulative volume in the 6 days was 1.1 times the average 6-day volume of 843,284 shares.

YEAR-TO-DATE

Riyad Bank advances 19% in 2018

Riyad Bank (TASI:1010), advanced SAR2.36 (or 18.8%) year-to-date (YTD) in 2018 to close at SAR14.94. Compared with the All Share Index (TASI) which has risen 14.5% YTD, this is a relative price increase of 4.2%.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Overbought/Bearish/Resistance Signals, Low Performance Indicator

SECTION 3 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Beta, Turnover Rate & Turnover Period

SECTION 4 RANKING

Global, Independent Rating

SECTION 5 FINANCIALS

Financials Summary, Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 RIYAD BANK BULLISH SIGNALS

1.1 Fundamentals:

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top 4% of stock by value of Q Ratio.

1.2 Undervaluation [compared with sector average]:

+ Price to Book of 1.2 [1.6]. We estimate Riyad Bank stock is trading at a current year Price to Book of 1.1 and a forward year Price to Book of 1.1.

1.3 Technicals:

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 14.2 minus the 26-day EMA of 13.99 is positive 0.21 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ Rises to Falls: in the past month the number of rises outnumbered falls 11:7 or 1.6:1.

+ In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.

+ The present value of SAR1,000 (PV1000) invested one year ago in Riyad Bank is SAR1,545, comprising a capital gain of SAR498 and dividend reinvested of SAR47.

PV10001-week1-month1-year
1010.TASI1,0791,0661,545
All Share Index (TASI)1,0591,0481,191

1.4 High Performance Indicators:

DescriptionValueRank In Market
EBITDA Margin %52In Top Quartile
Price/MAP2001.2In Top Quartile
Price Change %1.5In Top Quartile
% Prem to Vol Wtd Price6.3In Top Quartile

SECTION 2 RIYAD BANK BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 2.3%, divided by average yield of dividend yielding stocks in the All Share Index (TASI) of 2.9% is 82.1%. This suggests the stock is overvalued in dividend yield terms.

+ Total Liabilities/EBITDA of 42 which compares unfavourably with the Joseph Piotroski benchmark of 5.

+ As per the Du Pont analysis, Return on Equity of 10.2% is lower than sector average of 12.0%. This is computed as net profit margin of 48.6% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 5.6.

2.2 Overvaluation [compared with sector average]:

+ Return on Equity 10.2% [12.6%].

+ Dividend yield of 2.3% [3.1%].

2.3 Technicals:

+ The 0.4% discount to 12-month high of SAR15.0 against the 52.8% premium to 12-month low of SAR9.78 suggests the climb might be peaking.

2.4 Overbought/Bearish/Resistance Signals:

+ At SAR14.94 the price has risen above the upper Bollinger band resistance of SAR14.63, indicating a downside risk for it to fall back within the band.

+ The Relative Strength Index (RSI) of 91.2 has penetrated the overbought line of 70, suggesting the price gain of 8.3% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -4.3, suggesting the price is close to its 14-day high of SAR15.0.

+ The Money Flow Index [MFI] is 81.1 suggesting an overbought 14-day trend, being above 80. The Money Ratio of 4.3 suggests positive money flow was 4.3 times negative money flow.

+ The Stochastic indicator of 95.7 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

2.5 Low Performance Indicator:

DescriptionValueRank In Market
Return on Assets [ROA] %1.8In Bottom Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 1,317,478 shares worth SAR19.7 million (US$5.2 million) traded today. In the past week, volume was 1.2 times average and the shares were up 7.9%. The rise has been propped up by robust volume of 1.6 times the average daily volume of 843,284 shares.

+ The present value of SAR1,000 (PV1000) invested ten years ago in Riyad Bank is SAR1,019, including a capital loss of SAR318 and dividend reinvested of SAR337.

+ 10 years Multiplier in SAR = 1.019x

+ Compound Annual Growth Rate (CAGR) in SAR = 0.2%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Riyad Bank is $US1,019, including a capital loss of $US318 and dividend reinvested of $US337.

+ 10 years ago USD 1 equalled SAR 3.7481

+ 10 years Multiplier in USD = 1.019x

+ Compound Annual Growth Rate (CAGR) in USD = 0.2%

Apr 19, 2018: USD 1 equals SAR 3.75

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in 1010 would have produced a return of 53.3%.

1010Close (SAR)Dividends (SAR)Capital Gain / (Loss) %% YieldAnnual Return %
Apr 1914.940.3549.83.553.3
1 Yr ago9.971(6.4)9.43.0
2 Yrs ago10.651.05(35.9)6.3(29.5)
3 Yrs ago16.60.73(2.3)4.32.0
4 Yrs ago16.991.4552.913.166.0

Close 5 years ago SAR11.11

3.3 Beta:

+ Beta: the Beta of Riyad Bank stock is 0.8. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 5.5% (or a turnover period of 18 years 29 days). This average length of ownership of the stock at 8.5 times the average holding period of 2 years 44 days for stocks in the All Share Index (TASI) suggests a larger number of core investors, making a long-term investment safer.

SECTION 4 RANKING

4.1 Global Rank [out of 47,659 stocks] and Rank in the Middle East & Africa Region [out of 2,305 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)12B1,31028
Total Assets (US$)57.7B80223
Revenue (US$)2.2B4,21196
Net Profit (US$)1.1B1,05029
Return on Equity %10.213,114748
Net Profit Margin %48.62,076179
Price to Book1.112,106770
Yield %4.75,184578
PV$1000 (1Year) US$*1,5496,435301
US$* Change (1Year) %36.08,972410

* 1 year ago USD 1 = SAR 3.76

Apr 19, 2018: USD 1 equals SAR 3.75

4.2 Independent Rating

+ Brand Finance 500:

Riyad Bank was ranked 171 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; an improvement over a year from rank 214 in 2014. Brand Finance valued the brand at US$902 million.

+ Forbes 2000:

It is the 1696th largest by revenue in the Forbes Global 2000.

+ BSS/News Bites:

It is placed 15/164 in BSS News Bites' ranking of Saudi Arabian performers in the past year, a percentile ranking of 91.

SECTION 5 RIYAD BANK FINANCIALS

5.1 Financials Summary

Year endedDec 2017Dec 2016Dec 2015
Sales (USD B)2.22.12.3
Pretax (USD)1.1B891.3M1.1B
Net (USD)1.1B891.3M1.1B
EPS (SAR)--1.35

Sales were up 5.5% from US$2.1 billion in 2016 to US$2.2 billion in 2017. Net profit was up 18.1% from US$891.3 million in 2016 to US$1.1 billion in 2017.

5.2 Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-

Favourable Changes:

+ Net profit up 18.1% from SAR3.3b ($US891.2m) to SAR3.9b ($US1.1b)

+ EBIT to total assets up 18.8 from 1.5% to 1.8%.

+ Return on Equity up from 8.8% to 10.2%.

Unfavourable Changes:

+ Retained earnings to total assets down 6.1% to 1.9%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (hallalah)
19 Apr 201835
19 Apr 2017100
19 Apr 2016105
19 Apr 201573
19 Apr 2014145

SECTION 6 RIYAD BANK PROFILE

6.1 Activities

Riyad Bank is a Saudi Arabia-based joint stock company operating in the banking and finance sector in compliance with Islamic Sharia. Its main activities are offered through three segments: personal banking, corporate banking and treasury and investment. Personal banking offers services, like current accounts, savings accounts, time deposits, credit cards, loans and borrowings. Its corporate segment provides business banking solutions, such as direct debit solutions, cash management, transfer solutions, online corporate banking, short and long term financing services, transfers and payroll solutions.

6.2 Industry & Sector

Classification LevelName of Sector
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials
Business SectorBanking & Investment Services

6.3 Top Management

The chief executive officer is Abdulmajeed Abdullah Almobarak.

6.4 Issued Capital

Based on 3,000,000,000 issued shares the market capitalisation is SAR44.8 billion (US$12 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

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March 13: Faisal bin Bandar honors Riyad Bank for its sponsorship of 'Book of the Year' Award

His Royal Highness Prince Faisal Bin Bandar Bin Abdulaziz, Governor of Riyadh, has recently honored Riyad Bank in recognition of its sponsorship of the 'Book of the Year' Prize for ten years in a row. His Highness also honored the winners in its tenth edition: Abdulaziz Al-Manei author of "In Al-Mutanabi's Footsteps" and Mohamad Al-Shamrani author of "Six Minutes. Biography of Deliberate Mistakes".

"The award itself holds a huge cultural value, and we support such awards particularly those related to cultural clubs due to their high level of quality and innovation," stated His Highness Governor of Riyadh, "and the naming of 'Book of the Year' denotes appreciation of the book." He also clarified that Vision 2030 focuses on the intellect and it will undoubtedly elevate those intellects to levels that would help advance the citizens and the homeland alike in all walks of life.

The Cultural Club Chair of Board Dr.

March 11: Faisal bin Bandar honors Riyad Bank for its sponsorship of 'Book of the Year' Award

His Royal Highness Prince Faisal Bin Bandar Bin Abdulaziz, Governor of Riyadh, has recently honored Riyad Bank in recognition of its sponsorship of the 'Book of the Year' Prize for ten years in a row. His Highness also honored the winners in its tenth edition: Abdulaziz Al-Manei author of "In Al-Mutanabi's Footsteps" and Mohamad Al-Shamrani author of "Six Minutes. Biography of Deliberate Mistakes".

"The award itself holds a huge cultural value, and we support such awards particularly those related to cultural clubs due to their high level of quality and innovation," stated His Highness Governor of Riyadh, "and the naming of 'Book of the Year' denotes appreciation of the book." He also clarified that Vision 2030 focuses on the intellect and it will undoubtedly elevate those intellects to levels that would help advance the citizens and the homeland alike in all walks of life.

The Cultural Club Chair of Board Dr.

March 08: Riyad Bank Awarded Best Bank in Saudi Arabia for 2017

EMEA Finance, a magazine specialized in monitoring and analyzing the financial, banking and investment activities in Europe, the Middle East and North Africa, has awarded the best bank prize to Riyad Bank for the year 2017.

In the presence of senior executive personnel in various banking sectors, Riyad Bank has received the prize during a ceremony sponsored by EMEA Finance to honor and recognize the best financial and banking institutions in the Middle East.

Winning this prize comes to assert the continuation of Riyad Bank's local and regional accomplishments.

February 24: Saudi Riyad Bank's Q4 profit up on lower impairment charges

Riyad Bank, Saudi Arabia's fourth-largest lender by assets, posted a huge rise in fourth-quarter net profit on Tuesday, beating analysts' forecasts, boosted by an easing of impairment charges for credit losses.

The bank made 974 million riyals ($259.7 million) in the three months to Dec. 31, up from 293 million riyals in the same period of 2016, it said in a bourse filing.

February 13: Riyad Bank announces annual financial results for the period ended 31-12-2017 (Twelve Months)

Contact: 3030-401-1-966

Physical Address: King Abdul Aziz Road

PO Box 22622

Riyadh 11416

Saudi Arabia

State/Province/Country: Saudi Arabia

Exchange: Saudi Stock Exchange (Tadawul)

ISIN: SA0007879048

SA:1010; SAU:1010; AB:1010; 1010.SE

PermID: 4295887338

RIC: 1010.SE

Source: www.BuySellSignals.com