Riyad Bank (1010:SAR18.66) inches higher, resistance at 12-day EMA 07 September 2020

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Dateline: Monday September 07, 2020

Riyad Bank (TASI:1010), Saudi Arabia's 3rd largest Bank by market cap, has increased 0.3% but fell short of the 12-day Exponential Moving Average [EMA] of SAR18.77. Compared with the All Share Index (TASI) which rose 25.5 points (0.3%) in the day, the relative price increase was 0.003%. Today the stock traded at its four-day high of SAR18.98.

There were 1,743,461 shares worth SAR32.5 million (US$8.7 million) traded today. The volume was 0.6 times the average daily trading volume of 2.8 million shares.

Riyad Bank Stock Summary

Currency1 USD = 3.75 SAR% Held by Top 11 Shareholders60.2
Sep 07 closeSAR18.66SectorBank
Ave Daily Volume2,771,169 sharesShares Outstanding3,000,000,000
52-Week Range14.02 - 25.70Market CapSAR56 billion [USD14.9 billion]

INDEX

SECTION 1 Recent News

SECTION 2 Corporate Profile

SECTION 3 Top shareholders

SECTION 4 Today's Bullish Signals

SECTION 5 Ongoing Bullish Parameters

SECTION 6 Today's Bearish Signals

SECTION 7 Ongoing Bearish Parameters

SECTION 8 Bank Metrics

Glossary

LINKS TO FURTHER INFORMATION ON 1010:

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SECTION 1 Recent News

1.1 Press Releases

August 08: Events Calendar: Riyad Bank Announces an update in regard to hosting its 2020 second quarter earnings conference call

On Tuesday July 28, 2020 Riyad Bank hosted its Q2 2020 financial results earnings conference call with investors, analysts and investment houses, locally and internationally, to discuss the results of Q2 2020.

Source: mubasher.info

July 28: Events Calendar: Riyad Bank announces hosting 2020 second quarter earnings conference call

As part of Riyadh Bank initiatives to increase transparency and disclosures, Riyad Bank will organize on Tuesday 28 July 2020 its Q2 2020 financial results earnings conference call with investors, analysts and investment houses, to discuss the results of Q2 2020.

Source: mubasher.info

1.2 People's News

Tue Jul 28, 2020

Abdul Majid Abdullah Al Mubarak's performance as CEO of Riyad Bank (TASI:1010) is ranked in the top 12% of BuySellSignals performers for the past three years; a percentile ranking of 88.6. In the last 3 years the average annualized return to shareholders was 19.9%. The 3-year average return is ranked 4,931 out of 43,235 public companies traded globally. The present value of US$1,000 (PV1000) invested 3 years ago is now worth USD1,735; a capital gain of USD659 and dividend reinvested of USD76.

SECTION 2 Corporate Profile

2.1 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.

2.2 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

2.3 Industry & Sector

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

SECTION 3 Top shareholders

Top 11 shareholders

Name of the Share Holder% of Capital
Public Investment Fund21.8
General Organization for Social Insurance - Saudi Arabia16.7
Al Nahla Trading and Contracting Co8.7
Assila Investments Co8.0
Hassana Investment Co4.9
Moutaz Qusai Hassan Al Azzawi0.04
Abdullah bin Mohammed Ibrahim Al Issa0.04
Ibrahim Hassan Abbas Sharbatly0.02
Mohammed Abdulaziz Sulaiman Al Afaleq0.003
Talal Ibrahim Abdulrahman Al Qudaibi0.002
Abdulrahman Amin Hassan Jawa0.0001

% held by Top 11 Shareholders 60.2%

SECTION 4 Today's Bullish Signals

4.1 Rank in the top 24% by Relative Valuation in the Saudi Arabian market

DescriptionValueRank
Price to Book Value1.4In Top 24%

4.2 Uptrend

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 18.77 minus the 26-day EMA of 18.39 is positive, suggesting a bullish signal.

Past Quarter:

- The shares had their best quarter in five quarters since the quarter ended May 30, 2019.

The Best 3 weeks in the past quarter

The past month witnessed the best 2 weeks in the past quarter. In the past quarter the week beginning Sunday August 16 saw the highest weekly rise of 8.8% for a relative price increase of 7%.

Sun-ThuChange %All Share index (TASI) Change %RPC %Vol Ind [1 is avg]
Aug 16-208.81.871.1
Jul 05-092.71.41.30.5
Aug 09-1322.7-0.70.6

4.3 Undervaluation

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 5% of stocks by value of Q Ratio.

4.4 Other Bullish Signals

- Return on Equity of 13.8% versus sector average of 12.8%.

- As per the Du Pont analysis, Return on Equity of 13.8% is better than sector average of 12.8%. This is computed as net profit margin of 52.3% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 6.6.

4.5 Oversold/Bullish Signals:

- The stock is oversold according to the Williams % R indicator of -90.6, suggesting the price is close to its 14-day low of SAR18.50.

SECTION 5 Ongoing Bullish Parameters

5.1 Present Value of SAR1000 Invested in the Past [3 Mo, 3 Yrs]; The Best Periods with PVSAR1000 > 1,050

PVSAR1,0003 mo ago3 yrs ago
1010.TASISAR1,051SAR1,813
Bank sectorSAR1,058SAR1,227
All Share Index (TASI)SAR1,119SAR1,094

5.2 Past 3 years: price rise of 73.3%

3-Year price change of 73.3% for Riyad Bank outperformed the change of 10.2% in the All Share index (TASI) for a relative price change of 63.1%.

Price Change %3 Years
Riyad Bank73.3
Bank sector23.8
All Share index (TASI)10.2

5.3 Created Market Value [CMV] past 10 yrs of SAR12.1 billion (US$3.2 billion)

- Market Capitalization has increased by SAR14.6 billion from SAR41.4 billion to SAR56 billion in the last 10 years. This increase comprises cumulative retained earnings (RETE) of SAR2.5 billion and Created Market Value of SAR12.1 billion. The Created Market Value multiple, defined by the change in MCap for every SAR1 of retained earnings is exemplary at SAR5.76.

5.4 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 5.5%

TSR %3 yrs5 yrs10 yrs
1010.TASI21.79.25.6

5.5 Increased Volume, up 249% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 249.4% to 2.8 million shares.

Avg. Daily Volume Traded 12 months ended Sep 07, million shares

YearADVT
20202.8
20192.3
20180.88
20170.99
20160.79

5.6 Increased VWAP, up 70% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 69.5% to SAR19.15. 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 Sep 07 (SAR)

YearHigh PriceVWAPLow Price
202025.719.1514.02
201929.7424.1914.69
201817.813.4310.4
201711.2810.18.17
201614.1511.39.7

5.7 Increased share turnover, up 391% in 5 years

In the past five years, average daily share turnover has increased 391.1% to SAR41.6 million (US$11.1 million). This suggests increased liquidity.

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

YearAverage Daily Turnover
202041.6
201953.4
201811.8
20179.6
20168.5

SECTION 6 Today's Bearish Signals

6.1 Momentum Down 3.1% Past Week

The stock is the seventh lowest performer in the All Share Index (TASI) of 177 stocks in the past week.

Riyad Bank underperformed the All Share index (TASI) in 4 out of 5 days. The price ranged between a low of 18.6 on Sunday, Sep 06 and a high of 19.18 on Monday, Aug 31.

DayRiyad BankClose price [SAR]Price change %Relative change %Comment
SundayIn bottom 3% performers of All Share Index (TASI)18.6-1.7-1.4Week-low of 18.6; Steepest Fall
ThursdayDecreases on average volume18.92-0.5-0.9Price/MAP200 below 1
WednesdayIncreases19.020.1-1.3Top Rise
TuesdayFalls for a second consecutive day, a two-day fall of 1.0%19-0.9-0.4Overbought: close to 14-day high
MondayDrops on increasing volatility19.18-0.10.4VI*=1.8

[Volume Index (VI); 1 is average]

6.2 Rank in the bottom 3% by Price Performance in the Saudi Arabian market

DescriptionValueRank
PV1000 [1 yr] USD759In Bottom 3%
1-week Price Change %-2.7In Bottom 2%
Rel Strength 6 mo1In Bottom 1%

6.3 Downtrend

Trailing Relative Strength (6 months) at 1 percentile:

- The stock has a 6-month relative strength of 1 in the Saudi Arabian market of 178 stocks indicating it is trailing 99% of the market.

SECTION 7 Ongoing Bearish Parameters

7.1 Present Value of SAR1000 Invested in the Past Year; The Worst Period with PVSAR1000 < 760

PVSAR1,0001 yr ago
1010.TASISAR759
Bank sectorSAR900
All Share Index (TASI)SAR999

7.2 Past year: price fall of 24.1%

1-Year price change of -24.1% for Riyad Bank underperformed the change of -0.1% in the All Share index (TASI) for a relative price change of -24.1%.

Price Change %Year
Riyad Bank-24.1
Bank sector-10
All Share index (TASI)-0.1

7.3 Moving Annual Return of -24.1% in the past year:

Moving Annual Return was -24.1% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 14.8%

1010Close (SAR)Dividends (SAR)Capital Gain / (Loss) %% YieldAnnual Return %
Sep 0718.66-(24.1)-(24.1)
1 Yr ago24.60.5563.83.767.4
2 Yrs ago15.020.3739.53.443.0
3 Yrs ago10.770.36.739.7
4 Yrs ago10.090.7(27.0)5.1(21.9)

Close 5 years ago SAR13.82

7.4 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Period with TSR < -24%

TSR %1 yr
1010.TASI-24.1

7.5 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

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

SECTION 8 Bank Metrics

8.1 Bank Metrics (FY2019)

DescriptionSAR B FY2019SAR B FY2018]Change
Bank Revenue10.7 9 Up 19.5%

Favourable Changes:

- Bank Revenue up 19.5% from SAR9b to SAR10.7b

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 (%)

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/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 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

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

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.

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