The average target price of QAMC.QA is 1.6 and suggests 27% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 1.9. This translates into 52% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 1.3. This suggests 4% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Qatar Aluminium Manufacturing Company Q.P.S.C. manufactures and distributes aluminum products in Asia, Europe, and the United States. It offers extrusion ingots and foundry alloys for use in the automotive, construction, and engineering industries, as well as manufacturing of consumer goods. The company was founded in 2018 and is headquartered in Doha, Qatar. Qatar Aluminium Manufacturing Company Q.P.S.C. operates as a subsidiary of Qatar Energy.

Qatar

Qatar Aluminium Manufacturing Company Q.P.S.C.

Basic Materials

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been strong and significantly above its peers. At the same time, the average five-year yield has been significantly lower, at very close to zero. 

QAMC.QA reported revenue of QAR 270mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 37% from FY23 to QAR 0.11. Market expects EPS to reach QAR 0.08 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 5ppts and its growth accelerated by 3ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months it exceeded the performance of this peer group by 5ppts and accelerated its growth by 2ppts in the recent month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

Another important profitability metric, return on assets (RoA), amounted to 8.9% in the last 12 months, an increase from 6.7% in FY22. The market analysts predict that RoA will be 2.8% in FY23, though below its peers in this period. 

Qatar Aluminium Manufacturing Company Q.P.S.C. reported a return on equity (RoE) of 9.0% in the last 12 months, up from 6.8% in FY22. The market consensus projects an RoE of 2.9% in FY23, again behind its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 9.0%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.9 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

QAMC.QA has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually very stable and remains mildly favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is moderate. We note low margin volatility and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, and poor working capital management.

In highly turbulent market conditions, QAMC.QA is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, QAMC.QA is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is reasonably priced on P/E. 

Qatar Aluminium Manufacturing Company Q.P.S.C.

QAR 1.26

4

Qatar Aluminium Manufacturing Company Q.P.S.C.

QAR 1.26

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

QAR 1.26

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