Tadawul 2370 : Middle East Specialized Cables - Peer Companies

1. Riyadh Cables (Tadawul 4142) – 15.93 B SAR
2. EIC (Tadawul 1303) – 7.4 B SAR
3. Saudi Cable (Tadawul 2110) – 538 M SAR
4. Alomran (Tadawul 4141) – 464 M SAR

Tadawul 2370 : Middle East Specialized Cables vs TASI - Relative Strength Comparison

Tadawul 2370 : Middle East Specialized Cables - Technical Analysis (Monthly)

• A close look at the historical chart shows that after hitting a peak of nearly SAR 170 in June 2008, the stock struggled and dropped to SAR 40.
• It briefly recovered to SAR 70 but then dropped below SAR 40 again.
• The stock found support at SAR 20 and stayed in a long consolidation phase.
• In February 2015, it tried to break the resistance at SAR 40 but failed and then plummeted to SAR 8.
• Now, after nearly 14 years of consolidation, the stock is trading just below its resistance level, with expectations of finally breaking through.

Tadawul 2370 : Middle East Specialized Cables - Revenue & Profit Analysis

Year-on-year

• In the fiscal year 2023, the company achieved remarkable financial success, boasting a 14% year-on-year revenue growth that propelled its total revenue to an impressive 926.9 million SAR, up from 814.4 million SAR in FY22.
• During the same timeframe, EBITDA experienced significant growth, climbing to 94.2 million SAR from 43.3 million SAR.
• As of FY23, the company proudly holds an EBITDA margin of 10.2%.
• Additionally, the basic earnings per share (EPS) for the trailing twelve months surged to 1.80 SAR, marking an extraordinary 189% increase compared to the previous year.

Quarter-on-quarter

• For the quarter ending June 2024, the company reported a revenue of 249.9 million SAR, a decline from the record-breaking 291.3 million SAR achieved in March. Nevertheless, this figure reflects a robust 16% growth compared to the 215.9 million SAR earned in the same quarter last year.
• In terms of EBITDA, there was a decrease to 30.6 million SAR in June, down from 36.0 million SAR in March 2024. However, it is worth noting that this is an increase from the 22.4 million SAR reported in the same quarter last year.

Tadawul 2370 : Middle East Specialized Cables - Valuation

P/E Ratio

• The stock showcases an attractive valuation with a Price-To-Earnings Ratio of 22.3x, notably below the peer average of 358.7x.

P/B Ratio

• At a P/B ratio of 3.8x, this stock is considerably undervalued relative to the peer average of 6.1x,

Tadawul 2370 : Middle East Specialized Cables - Cash Flow Analysis

• In fiscal year 2023, cash flow from operations experienced significant growth, increasing to 81.6 million SAR, in contrast to a deficit of 43.3 million SAR in fiscal year 2022.

Tadawul 2370 : Middle East Specialized Cables - Debt Analysis

• As of June 2024, MESC's total debt stands at 53.4 million SAR, leading to a debt-to-equity ratio of 0.12. This marks a significant improvement, as the ratio has decreased from 0.29 over the last five years.

Tadawul 2370 : Middle East Specialized Cables - Top Shareholder

• Mansour Kaaki
• Former Board Member, Middle East Specialized Cables
• Share Held - 6.406%

Conclusion

Upon examining the different technical and financial metrics, we are confident that Middle East Specialized Cables is positioned for significant growth in near future.