Savola (Saudi Arabia) Buy Hold or Sell Recommendation

Stocks . Saudi Arabia . 
Stock . Savola Group
2050 Stock  SAR 37.40  0.20  0.54%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Savola Group is 'Strong Buy'. Macroaxis provides Savola buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Savola positions. The advice algorithm takes into account all of Savola's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Savola's buy-and-hold perspective. Check out Savola Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Savola and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Savola Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index.

Execute Savola Buy or Sell Advice

The Savola recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Savola Group. Macroaxis does not own or have any residual interests in Savola Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Savola's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell SavolaBuy Savola
Strong Buy

Market Performance

Strong
Details

Volatility

Very steady
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Hype Condition

Stale
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Current Valuation

Overvalued
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Odds of Distress

Very Low
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Economic Sensitivity

Almost neglects market trends
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Analyst Consensus

Not Available
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Reporting Quality (M-Score)

Inapplicable
Details
For the selected time horizon Savola Group has a Risk Adjusted Performance of 0.1915, Jensen Alpha of 0.4259, Total Risk Alpha of 0.4543, Sortino Ratio of 0.2239 and Treynor Ratio of 1.14
Savola Group recommendation module can be used to check and cross-verify current trade recommendation provided by analysts inspecting the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Savola Group is not overpriced, please validate all Savola fundamentals, including its price to book, revenue, and the relationship between the price to earning and price to sales .

Savola Trading Alerts and Improvement Suggestions

Savola Group is unlikely to experience financial distress in the next 2 years
Savola Group has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company has accumulated 8.43 B in total debt with debt to equity ratio (D/E) of 156.7, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Savola Group has a current ratio of 0.61, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Savola until it has trouble settling it off, either with new capital or with free cash flow. So, Savola's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Savola Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Savola to invest in growth at high rates of return. When we think about Savola's use of debt, we should always consider it together with cash and equity.
About 19.0% of Savola shares are owned by insiders or employees

Savola Returns Distribution Density

The distribution of Savola's historical returns is an attempt to chart the uncertainty of Savola's future price movements. The chart of the probability distribution of Savola stock daily returns describes the distribution of returns around its average expected value. We use Savola Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Savola returns is essential to provide solid investment advice for Savola.
Mean Return0.43Value At Risk-3.07
Potential Upside4.35Standard Deviation2.18
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Savola historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Backtest Savola Group

Savola Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Savola or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Savola's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Savola stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite		0.43
β
Beta against NYSE Composite0.37
σ
Overall volatility		2.28
Ir
Information ratio 0.20

Savola Volatility Alert

Savola Group has relatively low volatility with skewness of 0.41 and kurtosis of 0.63. However, we advise all investors to independently investigate Savola Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Savola's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Savola's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Savola Fundamentals Vs Peers

Comparing Savola's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Savola's direct or indirect competition across all of the common fundamentals between Savola and the related equities. This way, we can detect undervalued stocks with similar characteristics as Savola or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Savola's fundamental indicators could also be used in its relative valuation, which is a method of valuing Savola by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Savola to competition
FundamentalsSavolaPeer Average
Return On Equity0.06 %(0.31) %
Return On Asset0.0244 %(0.14) %
Profit Margin0.014 %(1.27) %
Operating Margin0.0405 %(5.51) %
Current Valuation25.69 B16.62 B
Shares Outstanding533.34 M571.82 M
Shares Owned by Insiders19.45 %10.09 %
Shares Owned by Institutions19.99 %39.21 %
Price to Earning20.35 X28.72 X
Price to Book1.71 X9.51 X
Price to Sales0.50 X11.42 X
Revenue24.67 B9.43 B
Gross Profit4.38 B27.38 B
EBITDA1.94 B3.9 B
Net Income221.88 M570.98 M
Cash and Equivalents594.05 M2.7 B
Cash per Share1.97 X5.01 X
Total Debt8.43 B5.32 B
Debt to Equity156.70 %48.70 %
Current Ratio0.62 X2.16 X
Book Value Per Share15.75 X1.93 K
Cash Flow from Operations864.39 M971.22 M
Earnings Per Share0.74 X3.12 X
Price to Earnings To Growth3.60 X4.89 X
Target Price33.1
Number of Employees1018.84 K
Beta0.38-0.15
Market Capitalization15.17 B19.03 B
Total Asset28.55 B29.47 B
Z Score0.68.72
Annual Yield0.0071 %
Net Asset28.55 B
Last Dividend Paid0.2

About Savola Buy or Sell Advice

When is the right time to buy or sell Savola Group? Buying financial instruments such as Savola Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Check out Savola Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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When running Savola's price analysis, check to measure Savola's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Savola is operating at the current time. Most of Savola's value examination focuses on studying past and present price action to predict the probability of Savola's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Savola's price. Additionally, you may evaluate how the addition of Savola to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Savola's value and its price as these two are different measures arrived at by different means. Investors typically determine if Savola is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Savola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
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