a Saudi Cement Company

January 2012
KMEFIC Research
Equity Analysis Report
Table 1 - Key Performance Indicators
in mil. SAR unless otherwise
indicated
FY-09 A FY-10 A FY-11 F FY-12 F FY-13 F FY-14 F FY-15 F
Revenues 1,163 1,272 1,422 1,464 1,570 1,635 1,668
Gross Profit 616 712 806 826 888 921 900
Operating Profit 574 666 754 772 830 861 839
Net Profit 562 657 739 758 817 847 824
Operating Profit Margin 49.3% 52.4% 53.0% 52.7% 52.9% 52.7% 50.3%
Net Profit Margin 48.3% 51.6% 51.9% 51.8% 52.0% 51.8% 49.4%
EPS (SAR) 2.77* 3.25* 3.65* 3.74 4.03 4.18 4.07
P/E 11.4 10.6 12.8 15.2 14.1 13.6 13.9
P/B 2.1 2.2 2.8 3.0 2.9 2.8 2.7
ROAE 19.1% 21.1% 22.7% 21.2% 21.0% 20.9% 19.6%
Dividend yield 4.3% 5.7% 2.9% 5.4% 5.9% 6.1% 5.9%
*Adjusted for the 50% capital increase
Sources: Company filings, KMEFIC Research
Yamama, The Stock in Tadawul
Figure 1 - Yamama vs Tadawul Index
80
70
60
Volume (000s)
Yamama (SAR)
Tadawul (Rebased)
800
700
600
Price
50
40
500
400
Volume
30
300
20
200
10
100
0
Jan-11 Feb-11Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Source: KMEFIC Research
0
The graph shows the stock’s performance versus the performance of the Tadawul index (rebased
for comparison purposes) for the year 2011. The stock outperformed the index, recording a
growth of 35.9% over the period in comparison to the 3.1% decline in Tadawdul. Initially, the
stock’s movements were highly correlated to the index’s movements but the breakaway point
came in April 2011, when the stock began outpacing the index. The share turnover ratio for the
stock during the year 2011 was 28.0%. Using the same set of data, the stock’s beta for 2011
(measured using the daily returns of the stock and the index over the year) was 0.729, indicating
that the stock’s movements were less volatile than the overall market. The average daily trading
volume for 2011 stood at 152 thousand shares.
Yamama Saudi Cement Co. P a g e | 4