Riyad Bank (1010: SAR25.90) up 4.0% in 2 days; +SAR1 [4.0%] Vol Index 1.5 [1 is avg] 09 June 2024

NEWS BITES - MIDDLE EAST & NORTH AFRICA

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Riyad Bank's (TASI: 1010 SAR25.90) stock price extended its gains on Sunday, rising an additional 85.0 hallalah (3.4%) to close at SAR25.90.

The shares have climbed SAR1.0 (4.0%) over the past two trading days; compared with the All Share Index (TASI) which rose 301.9 points (2.6%) in the two days for a relative price increase of 1.4%.

The 2-day rise was fuelled by a cumulative volume of 1.5 times the average 2-day volume of 1.4 million shares. There were 1,946,946 shares worth SAR50.4 million ($13.4 million) traded today.

Today its volatility (highest price minus lowest price/lowest price) of 3.2% was 1.3 times its average daily volatility of 2.4%. The stock traded between its 17-day high of SAR26.0 and its three-day low of SAR25.20 today.

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

RIYAD BANK (1010) Stock Dashboard [traded in Saudi Riyal, SAR] End-of-Day Sun, Jun 09

http:// www.riyadbank.com

LastSAR25.90Market CapSAR78 billion [US$21 billion]
P/E10Dividend Yield % (TTM)2.5
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*1.4
Today's Volume1,946,946Currency1.000 USD = 3.75 Saudi Riyal (SAR)
Ave Daily Volume1,409,435 sharesPV$1000 (1 yr)SAR794
US$794
52-Week Price Range24.20 - 34.57

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 SAR33.24. SAR3,750 would have bought 112.8 Riyad Bank shares on that day. Those 112.8 shares would be worth SAR2,922 at today's share price of SAR25.90. At today's exchange rate of USD1=3.75 SAR this is equivalent to USD779. Dividends reinvested are worth SAR15 ($15). PV$1000= $794.

Bearish Turning Point

Williams % R

The stock is overbought according to the Williams % R indicator of -5.6, suggesting the price is close to its 14-day high. The Williams % R was previously -60.5.

INDEX

SECTION 1 RECENT NEWS AND RESEARCH

SECTION 2 THE PAST YEAR: PRESS RELEASES

SECTION 3 TODAY'S BEARISH SIGNALS

SECTION 4 ONGOING BEARISH PARAMETERS

SECTION 5 TODAY'S BULLISH SIGNALS

SECTION 6 ONGOING BULLISH PARAMETERS

SECTION 7 CORPORATE PROFILE

SECTION 8 BANK METRICS

SECTION 9 TAX & DIVIDEND

SECTION 10 TOP MANAGEMENT AND BOARD OF DIRECTORS

SECTION 11 TOP SHAREHOLDERS

Read more...

ANNEXURE

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

APPENDIX II STOCK IDENTIFIERS

GLOSSARY

SECTION 1 RECENT NEWS AND RESEARCH

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

Past quarter momentum down: Riyad Bank plummets 16% on robust volume 1.5 times average.

Past month to HighLowVWAPVolume Index *
09 Jun 202427.3524.2025.342.0
09 May 202429.7026.3027.772.0
04 Apr 202431.5528.7030.050.8

[*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; High Low prices and VWAP are shown in Saudi Riyal]

SECTION 2 THE PAST YEAR: PRESS RELEASES

2.1 Press Releases and Corporate Wire

Press Release article 1 of 2, 158 words

September 30 2023: Quarterly Activities Report: Riyad Bank Cash Balance decreases 38%

As per a report dated September 30, 2023 the Cash Burn of operating activities was SAR8,738,159,000 for the nine months ended September 30, 2023. This corresponds to an average Cash Burn Rate of SAR970,906,556 per month. To support this Cash Burn Rate, the cash balance of SAR25,712,332,000 as at September 30, 2023 should be adequate till December 02, 2025. The cash runway defined by the length of time to run out of money if it kept spending at its current rate of cash burn is 2 years and 4 days from today's date.
Quarter ended 30 Sep 2023SAR
Cash and cash equivalents at beginning of period41.5 billion
Net cash from / (used in) operating activities(8.7 billion)
Net cash from investing activities(7 billion)
Net cash from financing activities(61.8 million)
Cash raised (used) during quarter(15.8 billion)
Cash and cash equivalents at end of period25.7 billion

Press Release article 2 of 2, Source: WEC, 53 words

July 20 2023: Riyad Bank announces dividend

Riyad Bank today announced a cash dividend of 65.0 hallalah per share. The ex-dividend date is Sunday, July 30, 2023 and the record date is Monday, July 31, 2023 and it is payable on Monday, August 07.

SECTION 3 TODAY'S BEARISH SIGNALS

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

DescriptionValueRank
EV/EBITDA5.3In Bottom 11%

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

DescriptionValueRank
PV1000 [1 yr] $794In Bottom 18%

3.3 Downtrend

Price/Moving Average Price of 0.92 and negative MACD:

- The Price/MAP 200 for Riyad Bank is 0.92. Being less than 1 is a bearish indicator. It is lower than the Price/MAP 200 for the All Share Index (TASI) of 1.01, a second bearish indicator. The stock is trading below both its MAPs and the 50-day MAP of SAR27.20 is lower than the 200-day MAP of SAR28.25, a third bearish indicator. The 200-day MAP has decreased to SAR28.25, a fourth bearish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 25.34 minus the 26-day EMA of 25.92 is negative, suggesting a bearish signal.

Past Quarter:

- In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend.

The Worst 3 weeks in the past quarter

The past month witnessed the worst 2 weeks in the past quarter. In the past quarter the steepest fall of 5.8% took place in the week beginning Sunday May 19. The fall was exacerbated by volume of 2.5 times average.

Sun-ThuChange %All Share index (TASI) Change %Vol Ind [1 is avg]
May 19-23-5.8-1.72.5
May 05-09-3.5-0.52.1
May 26-30-3-4.13.1

Trailing Relative Strength (6 months) at 30 percentile:

- The stock has a 6-month relative strength of 30 in the Saudi Arabian market of 268 stocks indicating it is trailing 70% of the market.

3.4 Overbought/Bearish Signals:

- The stock is overbought according to the Williams % R indicator of -5.6, suggesting the price is close to its 14-day high of SAR26.0.

SECTION 4 ONGOING BEARISH PARAMETERS

4.1 Past two-years

- The shares fell SAR1.53 (4.4%) a year ago which accelerated to SAR7.29 (22.0%) in the past year.

4.2 Rank in the bottom 16% by Growth in the Saudi Arabian market

DescriptionValueRank
EPS Growth %11.2In Bottom 16%

4.3 Present Value of SAR1000 Invested in the Past [3 Mo, 1 Yr]; The Worst Periods with PVSAR1000 < 842

PVSAR1,0003 mo ago1 yr ago
1010.TASISAR841SAR794
Bank sectorSAR894SAR978
All Share Index (TASI)SAR967SAR1,040

4.4 The Worst Periods [3 Mo, 1 Yr] with Price Change % < -15.8

1-Year price change of -22.1% for Riyad Bank underperformed the change of 4% in the All Share index (TASI) for a relative price change of -26.1%.

Price Change %QuarterYear
Riyad Bank-15.9-22.1
Bank sector-10.6-2.2
All Share index (TASI)-5.64

4.5 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

4.6 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < 2.9%

TSR %1 yr20 yrs
1010.TASI-20.62.8

4.7 Declining Volume, down 48% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 48.2% to 1.4 million shares.

Avg. Daily Volume Traded 12 months ended Jun 09, million shares

YearADVT
20241.4
20231.2
20221.5
20211.6
20202.7

4.8 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 5 TODAY'S BULLISH SIGNALS

5.1 Relative Value Indicators: Undervaluation compared with sector averages

Price/Earnings:

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

Price/Earnings of 10 < Bank sector (of 11 stocks) avg of 12.5:

- The price-to-earnings ratio of 10 indicates undervaluation compared with sector average of 12.5 and market average of 14.5.

SectorP/EDividend Yield %
Forbes 2000Stock: 10.0; Sector: 19.2Stock: 2.5; Sector: 0.8undervalued

5.2 3-DAY: MODERATE MOMENTUM UP

1010 increases 3.2% on firm volume 1.4 times average. Compared with the All Share Index (TASI) which rose 243.1 points (or 2.1%) in the 3-days, the relative price increase was 1.1%.

Riyad Bank (1010) outperformed the All Share index (TASI) in 2 out of 3 days. The price ranged between a high of SAR25.90 on Sunday Jun 09 and a low of SAR24.90 on Wednesday Jun 05.

JunRiyad BankClose [SAR]Change %Comment
Sun 09Up 4.0% in 2 days25.93.4Top Rise; VI*=1.4
Thu 06Increases, 2 days' volume in a day25.050.6VI*=1.6
Wed 05Offers earnings yield of 10.4%24.9-0.8Steepest Fall; VI*=1.2

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

[Volume Index (VI); 1 is average]

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

DescriptionValueRank
Cash to MCap %38.9In Top 5%
Price/Earnings10In Top 9%
P/E * P/NTA12.95In Top 14%
Price to Book Value1.3In Top 22%
Earnings Yield %10.0In Top 22%

5.4 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 38.9%.

- 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.

SECTION 6 ONGOING BULLISH PARAMETERS

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

FYEPS (SAR)Growth %
20232.5811.2
20222.3215.4

6.2 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%.

6.3 Rank in the top 90% by Liquidity in the Saudi Arabian market

DescriptionValueRank
Ave daily turnoverSAR54 million ($15 million)In top 90%

6.4 Rank in the top 18% by Performance in the Saudi Arabian market

DescriptionValueRank
Net Profit Margin %50.6In Top 17%
EBITDA Margin %60.8In Top 18%

6.5 Present Value of SAR1000 Invested in the Past 3 Years; The Best Period with PVSAR1000 > 1,171

PVSAR1,0003 yrs ago
1010.TASISAR1,172
Bank sectorSAR1,040
All Share Index (TASI)SAR1,101

6.6 Created Market Value [CMV] past 20 yrs of SAR19.5 billion ($5.2 billion)

- Market Capitalization has increased by SAR30.3 billion from SAR47.4 billion to SAR77.7 billion in the last 20 years. This increase comprises cumulative retained earnings (RETE) of SAR10.8 billion and Created Market Value of SAR19.5 billion. The Created Market Value multiple, defined by the change in MCap for every SAR1 of retained earnings is exemplary at SAR2.80.

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

TSR %3 yrs5 yrs10 yrs
1010.TASI5.467.5

6.8 P/E/G < 1

The price earnings ratio of 10.0 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/G0.9
P/E10.04

6.9 Increased VWAP, up 51% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 50.8% to SAR28.79. 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 Jun 09 (SAR)

YearHigh PriceVWAPLow Price
202434.5728.7924.2
202336.4130.8824.56
202240.5929.6323.68
202124.9218.5314.82
202025.0219.0912.09

6.10 Increased share turnover, up 7% in 5 years

In the past five years, average daily share turnover has increased 6.6% to SAR54 million ($14.4 million). This suggests increased liquidity.

Past five years, 12 months ended Jun 09 (SAR million)

YearAverage Daily Turnover
202454.0
202337.8
202244.4
202128.8
202050.7

6.11 Satisfies one criterion of Benjamin Graham

- The P/E of 10 multiplied by the P/NTA of 1.3 is 13.0. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 7 CORPORATE PROFILE

7.1 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.

7.2 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

7.3 Industry & Sector [of 55 stocks]

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

SECTION 8 BANK METRICS

8.1 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 9 TAX & DIVIDEND

9.1 Average Income Tax Paid (Past 3 Years)

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

9.2 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 10 TOP MANAGEMENT AND BOARD OF DIRECTORS

10.1 Top Management

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

NameDesignationSince Appointment
Tareq A. Al SadhanChief Executive Officer5 Yrs, 2 Mos
Abdullah Ali Al-OrainiChief Financial Officer5 Yrs, 5 Mos
Mohammed Abdullah Al YahyaChief Operating Officer6 Yrs, 5 Mos

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

NameDesignationSince Appointment
Abdullah Mohammed Al-IssaNon-Executive Chairman4 Yrs, 8 Mos

10.2 Board Of Directors

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

NameDesignationSince Appointment
Jamal Abdul Karim Abdul Karim Al RammahDirector7 Yrs, 7 Mos
Ibrahim Hassan SharbatlyDirector8 Yrs, 5 Mos
Talal Ibrahim Al-QudaibiIndependent Director8 Yrs, 5 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 11 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 Burn: Net Operating Cashflow used in the past quarter. Shown for companies reporting losses

Cash Runway: Cash at end of Qtr/Cash Burn. Shown in months for companies reporting losses

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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