Ratings Southern Province Cement Company

Equities

3050

SA0007879501

End-of-day quote Saudi Arabian S.E. Other stock markets 06:00:00 2024-04-23 pm EDT			5-day change	1st Jan Change
39.65 ^SAR	-0.63%		-2.82%	-6.82%

Mar. 24	Southern Province Cement Company Reports Earnings Results for the Full Year Ended December 31, 2023	CI
Mar. 17	Southern Province Cement Logs Lower FY23 Profit, Revenue	MT

Summary

On the basis of various fundamental qualitative criteria, the company appears to be particularly poorly ranked from a medium and long-term investment perspective.
From a short-term investment perspective, the company presents a deteriorated fundamental situation
The company's Refinitiv ESG score, based on a relative ranking of the company within its sector, comes out particularly poor.

Strengths

The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
The group's activity appears highly profitable thanks to its outperforming net margins.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Over the past twelve months, analysts' opinions have been strongly revised upwards.

Weaknesses

According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
With a 2024 P/E ratio at 26.35 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
Based on current prices, the company has particularly high valuation levels.
The company is highly valued given the cash flows generated by its activity.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
For the past year, analysts have significantly revised downwards their profit estimates.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.
Over the past four months, analysts' average price target has been revised downwards significantly.
The average consensus view of analysts covering the stock has deteriorated over the past four months.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Construction Materials

	1st Jan change	Capi.	ESG Refinitiv
SOUTHERN PROVINCE CEMENT COMPANY	-6.82%	1.49B	D-
HOLCIM LTD	+19.90%	48.62B	B
JAMES HARDIE INDUSTRIES PLC	-3.13%	15.44B	D+
ANHUI CONCH CEMENT COMPANY LIMITED	-3.77%	15.31B	B+
SHREE CEMENT LIMITED	-14.95%	10.56B	B+
DANGOTE CEMENT PLC	+105.28%	8.94B	-
EAGLE MATERIALS INC.	+24.79%	8.73B	D
XINJIANGTIANSHAN CEMENT CO.,LTD	-2.10%	7.72B	C+
TAIWAN CEMENT CORP.	-7.75%	7.48B	B+
BUZZI S.P.A.	+20.12%	6.55B	B-

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

Innovation

Use of resources

Governance

CSR Strategy

Management

Shareholders