Riyad Bank (1010: SAR27.0) drops to five-month low on robust volume; -20 hallalah [0.7%] Vol Index 1.5 [1 is avg] 07 May 2024

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Riyad Bank's (TASI: 1010 SAR27.0) stock price traded at its 152-day low of SAR26.80. The last time the price hit that low level was on Thursday, Dec 07, 2023.

Riyad Bank's stock price decreased 20.0 hallalah (0.7%) from its previous trading session to close at SAR27.0.

Compared with the All Share Index (TASI) which fell 14.5 points (0.1%) in the day, the relative price change was -0.6%.

Riyad Bank is Saudi Arabia's 4th largest Bank by market cap.

There were 1,338,746 shares worth SAR36.1 million ($9.6 million) traded today. The fall was exacerbated by robust volume of 1.5 times the average daily volume of 916,830 shares.

RIYAD BANK (1010) Stock Dashboard [traded in Saudi Riyal, SAR] End-of-Day Tue, May 07

http:// www.riyadbank.com

LastSAR27.0Market CapSAR81 billion [US$22 billion]
P/E10.5Dividend Yield % (TTM)2.4
EPS (FY2023)SAR2.58DPS (past 12 months)SAR1.3 or 130 hallalah
Shares Outstanding3,000,000,000ExchangeSAUDI ARABIAN [Saudi ]
1010 in IndicesAll Share [of 167 stocks]SectorBank [of 11 stocks]
EPS Growth (Q4 2023 vs Q3 2023)-7.5Today's VI*1.5
Today's Volume1,338,746Currency1.000 USD = 3.75 Saudi Riyal (SAR)
Ave Daily Volume916,830 sharesPV$1000 (1 yr)SAR873
US$873
52-Week Price Range25.25 - 34.81

A year ago the exchange rate was USD 1 = 3.75 SAR. USD1000 would have bought SAR3,750. A year ago the Riyad Bank share price was SAR31.53. SAR3,750 would have bought 118.9 Riyad Bank shares on that day. Those 118.9 shares would be worth SAR3,212 at today's share price of SAR27.0. At today's exchange rate of USD1=3.75 SAR this is equivalent to USD856. Dividends reinvested are worth SAR17 ($17). PV$1000= $873.

Price Volume Snapshot past 3 months (SAR)

Past month to HighLowVWAPVolume Index *
07 May 202429.726.827.92.0
04 Apr 202431.628.730.00.8
07 Mar 202431.628.430.60.9

[*Volume Index of 2.0 means volume for the month was 2.0 times its 12-month average]

[VWAP is defined as the Volume Weighted Average Price]

INDEX

SECTION 1 RECENT NEWS AND RESEARCH

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 ONGOING BEARISH PARAMETERS

SECTION 4 TODAY'S BULLISH SIGNALS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 CORPORATE PROFILE

SECTION 7 BANK METRICS

SECTION 8 TAX & DIVIDEND

SECTION 9 TOP MANAGEMENT AND BOARD OF DIRECTORS

SECTION 10 TOP SHAREHOLDERS

Read more...

ANNEXURE

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

APPENDIX II STOCK IDENTIFIERS

GLOSSARY

SECTION 1 RECENT NEWS AND RESEARCH

Financial News

Annual Report (FY 2023):

Release Date: February 27, 2024

FY2023 Annual Report: Riyad Bank EPS Growth slows to 11%

Riyad Bank (SA:1010), announced EPS of SAR2.58 (US68.8c) for the year-ended 31 December 2023 [FY2023], up 11% from SAR2.32 (US61.87c) in the previous year-ended 31 December 2022 [FY2022]. EPS growth from the year-ended 31 December 2021 to the year-ended 31 December 2022 was 15%.

Annual growth in Revenue, Net Profit and EPS

Year-ended31 December [FY/2023]31 December [FY/2022]
Revenue, SAR Billion15.913.6
Revenue, $ Billion4.23.6
Growth in Revenue %16.917.6
Net Profit, SAR Billion8.07.0
Net Profit, $ Billion2.11.9
Growth in Net Profit %14.616.5
EPS, SAR2.582.32
Growth in EPS %11.215.4

BEARISH BREAKOUT

A bearish breakout is evident in the stock as price weakens on volume which is 1.5 times its average volume, after breaking past a defined support level of SAR26.8.

VI* Volume Index = Number of shares traded today/Average number of shares traded per day.

SECTION 2 TODAY'S BEARISH SIGNALS

2.1 3-DAY: STRONG MOMENTUM DOWN

1010 dips 1.5% on robust volume 1.8 times average. Compared with the All Share Index (TASI) which rose 5.7 points (or 0.05%) in the 3-days, the relative price change was -1.4%.

Riyad Bank (1010) underperformed the All Share index (TASI) in 2 out of 3 days. The price ranged between a low of SAR27.0 on Tuesday May 07 and a high of SAR27.55 on Sunday May 05.

MayRiyad BankClose [SAR]Change %Comment
Tue 07Drops to five-month low on robust volume27-0.7VI*=1.5
Mon 06Offers earnings yield of 9.5%27.2-1.3Steepest Fall; VI*=2.8
Sun 05Increases on average volume27.550.5Top Rise

* RPC - Relative Price Change is % price change of stock less % change of the All Share Index (TASI).

[Volume Index (VI); 1 is average]

2.2 Rank in the bottom 11% by Relative Valuation in the Saudi Arabian market

DescriptionValueRank
EV/EBITDA5.7In Bottom 11%

2.3 Rank in the bottom 18% by Price Performance in the Saudi Arabian market

DescriptionValueRank
PV1000 [1 yr] $873In Bottom 18%
1-week Price Change %-2.5In Bottom 17%
Rel Strength 6 mo16In Bottom 15%
Price/MAP500.92In Bottom 12%
1-month Price Change %-9.4In Bottom 7%

2.4 Downtrend

The stock traded at a seven-month low of SAR26.80 today.

Price/Moving Average Price of 0.94 and negative MACD:

- The Price/MAP 200 for Riyad Bank is 0.94. Being less than 1 is a bearish indicator. It is lower than the Price/MAP 200 for the All Share Index (TASI) of 1.05, a second bearish indicator. The 200-day MAP has decreased to SAR28.88, a third bearish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 27.68 minus the 26-day EMA of 28.3 is negative, suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

- The price to 50-day EMAP ratio is 0.9, a bearish indicator. The 50-day EMAP has decreased to SAR28.81. A decrease is another bearish indicator.

Past Month:

- Falls to Rises: In the past month the number of falls outnumbered rises 12:5 or 2.4:1.

- Riyad Bank stock was the eighth lowest performer in the All Share Index (TASI).

Past Quarter:

- The shares had their worst quarter in five quarters since the quarter ended February 07, 2023.

The Worst 3 weeks in the past quarter

In the past quarter the steepest fall of 2.9% took place in the week beginning Sunday March 24. The fall was exacerbated by volume of 1.3 times average.

Sun-ThuChange %All Share index (TASI) Change %Vol Ind [1 is avg]
Mar 24-28-2.9-2.11.3
Apr 21-25-1.2-21.7
Mar 03-07-1-0.41.3

Slipping Relative Strength:

- The stock has a 6-month relative strength of 16 in the Saudi Arabian market of 264 stocks indicating it is trailing 84% of the market.

- Also, the relative strength percentile is slipping at 16 for 6 months, 13 for 3 months and 6 for 1 month.

SECTION 3 ONGOING BEARISH PARAMETERS

3.1 Rank in the bottom 14% by Growth in the Saudi Arabian market

DescriptionValueRank
EPS Growth %11.2In Bottom 14%

3.2 Present Value of SAR1000 Invested in the Past [3 Mo, 1 Yr]; The Worst Periods with PVSAR1000 < 922

PVSAR1,0003 mo ago1 yr ago
1010.TASISAR922SAR873
Bank sectorSAR930SAR956
All Share Index (TASI)SAR1,030SAR1,098

3.3 The Worst Periods [3 Mo, 1 Yr] with Price Change % < -7.7

1-Year price change of -14.4% for Riyad Bank underperformed the change of 11.2% in the All Share index (TASI) for a relative price change of -25.5%.

Price Change %QuarterYear
Riyad Bank-7.8-14.4
Bank sector-7-3.3
All Share index (TASI)1.611.2

3.4 Sequential EPS growth [Q4/2023 vs Q3/2023] of -7.5%:

The most recent quarter (Q4/2023) showed a decline of 7.5% in sequential growth of Quarterly EPS.
Quarterly ReportEPS ( hallalah)Growth %
Q4/202362.0-7.5
Q3/202367.04.7

3.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < 3%

TSR %1 yr20 yrs
1010.TASI-12.72.9

3.6 Declining Volume, down 68% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 68.1% to 916,830 shares.

Avg. Daily Volume Traded 12 months ended May 07, thousand shares

YearADVT
2024916.8
20231288.2
20221493.1
20211741.8
20202870.3

3.7 Declining share turnover, down 8% in 5 years

In the past five years, average daily share turnover has decreased 7.6% to SAR51.8 million ($13.8 million). This suggests decreased liquidity.

Past five years, 12 months ended May 07 (SAR million)

YearAverage Daily Turnover
202451.8
202339.8
202240.8
202130.3
202056.1

3.8 Satisfies 4 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Return on Assets improvement [from 2% to 2.1%].

- Total shares on issue unchanged.

- Improvement in asset turnover [growth in revenue of 16.9% exceeded growth in assets of 7.6%].

But does not meet the following 5 criteria of Joseph Piotroski:

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in long-term debt to total assets.

- Improvement in current ratio.

- Improvement in gross margin.

SECTION 4 TODAY'S BULLISH SIGNALS

4.1 Relative Value Indicators: Undervaluation compared with sector averages

Price/Earnings:

Riyad Bank stock is trading at the seventh lowest P/E multiple in the All Share Index (TASI).

Price/Earnings of 10.5 < Bank sector (of 11 stocks) avg of 12.9:

- The price-to-earnings ratio of 10.5 indicates undervaluation compared with sector average of 12.9 and market average of 12.4.

SectorP/EDividend Yield %
Forbes 2000Stock: 10.5; Sector: 18.5Stock: 2.4; Sector: 0.8undervalued

4.2 Rank in the top 22% by Relative Valuation in the Saudi Arabian market

DescriptionValueRank
Price/Earnings10.5In Top 6%
Cash to MCap %37.3In Top 8%
P/E * P/NTA14.03In Top 13%
Price to Book Value1.3In Top 19%
Earnings Yield %9.6In Top 22%

4.3 Other Bullish Signals

- Return on Capital Employed of 6.8% versus sector average of 2.3%.

MCap/Total Assets:

- 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 6% of stocks by value of Q Ratio.

- The company is cash rich with Cash to Market Capitalisation at 37.3%.

- As per the Du Pont analysis, Return on Equity of 13.4% is better than sector average of 12.4%. This is computed as net profit margin of 50.6% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 6.4.

4.4 Oversold/Bullish Signals:

- The stock is oversold according to the Williams % R indicator of -89.7, suggesting the price is close to its 14-day low of SAR26.80.

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 EPS growth [FY2023 vs FY2022] of 11.2%:

FYEPS (SAR)Growth %
20232.5811.2
20222.3215.4

5.2 Rule of 40

The stock scores a favorable score exceeding 40 when using the Rule of 40 (Revenue Growth plus EBITDA margin). Y.o.y revenue growth of 17%, EBITDA margin is 60.8% and the sum of the two 77.7% needs to exceed 40%.

5.3 Rank in the top 88% by Liquidity in the Saudi Arabian market

DescriptionValueRank
Ave daily turnoverSAR52 million ($14 million)In top 88%

5.4 Rank in the top 17% by Performance in the Saudi Arabian market

DescriptionValueRank
EBITDA Margin %60.8In Top 17%
Net Profit Margin %50.6In Top 17%

5.5 Present Value of SAR1000 Invested in the Past 3 Years; The Best Period with PVSAR1000 > 1,320

PVSAR1,0003 yrs ago
1010.TASISAR1,321
Bank sectorSAR1,097
All Share Index (TASI)SAR1,208

5.6 Created Market Value [CMV] past 20 yrs of SAR23.7 billion ($6.3 billion)

- Market Capitalization has increased by SAR34.6 billion from SAR46.4 billion to SAR81 billion in the last 20 years. This increase comprises cumulative retained earnings (RETE) of SAR10.8 billion and Created Market Value of SAR23.7 billion. The Created Market Value multiple, defined by the change in MCap for every SAR1 of retained earnings is exemplary at SAR3.19.

5.7 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 5.3%

TSR %3 yrs5 yrs10 yrs
1010.TASI9.65.48.5

5.8 P/E/G < 1

The price earnings ratio of 10.5 divided by trailing twelve months eps growth of 11.2% corresponds to an attractive P/E/G of 0.9 times; being less than the value benchmark of 1.0.

EPS Growth (%)11.21
P/E/G0.93
P/E10.47

5.9 Increased VWAP, up 48% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 47.7% to SAR29.57. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

Past five years, 12 months ended May 07 (SAR)

YearHigh PriceVWAPLow Price
202434.8129.5725.25
202340.5931.3124.56
202239.4628.4421.77
202124.9217.6313.42
202025.0220.0112.09

5.10 Satisfies one criterion of Benjamin Graham

- The P/E of 10.5 multiplied by the P/NTA of 1.3 is 14.0. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 6 CORPORATE 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. It is Saudi Arabia's 4th largest Bank by market capitalisation.

6.2 Contact Details

Websitehttp:// www.riyadbank.com
Physical AddressKing Abdul Aziz Road , PO Box 22622 , Riyadh 11416 , Saudi Arabia
Phone3030-401-1-966
Fax2707-404-1-966
Emailabdullah.al-shehri@riyadbank.com

6.3 Industry & Sector [of 55 stocks]

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

SECTION 7 BANK METRICS

7.1 Bank Metrics (FY2023)

DescriptionFY2023FY2022Change
Total Non Interest Expense6.9 B5.7 BUp 22%
Bank Other Revenue74.7 M64.2 MUp 16.4%

Favourable Changes:

- Bank Other Revenue up 16.4% from SAR64.2m to SAR74.7m

Unfavourable Changes:

- Total Non Interest Expense up 22% from SAR5.7b to SAR6.9b

SECTION 8 TAX & DIVIDEND

8.1 Average Income Tax Paid (Past 3 Years)

Description202320222021
As % of profit before tax10.310.310.3
As % of operating cash flow9.69.79.6

8.2 Dividend History

In the past 5 years annual dividends have decreased by 5.0 hallalah from 70.0 hallalah to 65.0 hallalah. Based on a start date of 5 years ago, there has been two increases in dividends over the last 5 years.

DateValue ( hallalah)Type
30 Jul 202365Cash
Tr 12 Months65
2022 - 2023115
2021 - 2022104
2020 - 202150
2019 - 202070

SECTION 9 TOP MANAGEMENT AND BOARD OF DIRECTORS

9.1 Top Management

Top Management [Three top executives with tenure > 5 yrs]

NameDesignationSince Appointment
Tareq A. Al SadhanChief Executive Officer5 Yrs, 1 Mo
Abdullah Ali Al-OrainiChief Financial Officer5 Yrs, 4 Mos
Mohammed Abdullah Al YahyaChief Operating Officer6 Yrs, 4 Mos

Top Management [One top executive with tenure < 5 yrs]

NameDesignationSince Appointment
Abdullah Mohammed Al-IssaNon-Executive Chairman4 Yrs, 7 Mos

9.2 Board Of Directors

Board Of Directors [Ten directors with tenure > 7 yrs]

NameDesignationSince Appointment
Jamal Abdul Karim Abdul Karim Al RammahDirector7 Yrs, 6 Mos
Ibrahim Hassan SharbatlyDirector8 Yrs, 4 Mos
Talal Ibrahim Al-QudaibiIndependent Director8 Yrs, 4 Mos
Mutaz Kusai Al-AzzawiDirector-
Nader Ibrahim Al-WehibiDirector-
Mohammed Abdulaziz Al-AfaleqDirector-
Ibrahim Hassan Abbas SharbatlyDirector-
Abdul-Rahman Amin JawaIndependent Director-
Mohammed Omair Ayed Al-OtaibiIndependent Director-
Mohammed Talal Al-NahasIndependent Director-

SECTION 10 TOP SHAREHOLDERS

Top 5 shareholders

Name of the Share HolderNumber Of Shares% of Capital
Public Investment Fund65260800021.8
General Organization for Social Insurance - Saudi Arabia31170000010.4
Al Nahla Trading and Contracting Co2621490008.7
Assila Investments Co2400000008.0
Hassana Investment Co1470000004.9

% held by Top 5 shareholders 53.8%

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

1010: EXPORT DATA TO EXCEL:

+ PRICE VOLUME - 5-YEAR HISTORY

+ PEER COMPARISON

1010: OTHER INFORMATION:

+ NEWS ARCHIVES - 1010 PAST 4 YEARS:

+ PRICE VOLUME CHARTS

+ EUR vs SAR EXCHANGE RATE CHARTS IN HTML

+ BOARD OF DIRECTORS

APPENDIX II STOCK IDENTIFIERS

ISIN: SA0007879048

PermID: 4295887338

RIC: 1010.SE

LEI: 54930037RJ782ISGGM71

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Cash/MCap: Cash plus Liquids/Market Capitalisation (times)

Current Ratio: Current Assets/Current Liabilities (times)

Dividend Yield: Dividend Per Share/Share Price (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.

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