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Are Saudi companies over-valued? Corporate Finance view

Of the 55 listed Saudi companies chosen for this survey with a total capitalization of SAR 989 million, and by using a simple perpetuity calculation, it seems that their Enterprise Values (EV) reaches only SAR 72 million. In other words, the portfolio was over-valued by
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How significant were Mobily’s accounting errors: Credit Risk

On 3 November 2014, Mobily disclosed financial irregularities in its accounting practices. As a result, its share price dropped 30 percent, and its CEO was recently suspended. This disclosure also affected the reputation of Etisalat, the UAE telecom operator who owns 27 percent of the
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What are the Credit Risk impact of Tesco’s accounting scandal?

In a recent article by the Harvard Business Review, Amazon was admired as being able to generate much cash flow despite having a very low net margin (http://blogs.hbr.org/2014/10/at-amazon-its-all-about-cash-flow/). Yet in the current news, the Chairman of Tesco resigned for overstating its already low profits by
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Are all schools in the GCC low Credit Risk rated?

GEMS recently issued a perpetual subordinated Sukuk for USD 200 million, carrying a coupon of 12% (http://goo.gl/G54cz3). This is a company that has a Financial Rating of 3.6 (6 Sigma), a Category 1 obligor in terms of credit risk, and should command very fine pricing.
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How Risky is a Saudi Portfolio? A selection of Credit Risk Ratings

In our previous article on Kuwaiti companies, we addressed the point that given the relative wealth in the country, why were almost half of the listed companies we sampled in Kuwait risk rated above 6.5; i.e. watch listed or worse in terms of credit risk,
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Beauty is certainly in the eye of the Credit Risk beholder.

According to the company’s website L’Oreal Group is the world’s largest cosmetics and beauty company with a portfolio of 27 international brands including Lancôme, Maybelline, and Redken. With an organizational structure based on distribution channels and a strong sales force, it aims to please customers
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Do all regional Pharma companies have the wrong credit risk model?

Take UAE’s largest. Julphar was established in 1980, and is involved in the production and distribution of pharmaceutical products through a network of twelve manufacturing plants (with further expansion planned), and a logistics network across five continents (www.julphar.net). The company enjoys a diverse product range
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How well will retail stores cope with changes in the industry? A Credit Risk perspective

According to Deloitte’s recent publication titled Global Powers of Retailing 2014 (http://goo.gl/Wj4FEP), of the 250 largest retail stores in the world, EMKE Group (the Lulu chain) was reported as the 197th largest. The Group had a CAGR in revenues of 25.3% over 2007-2012, with current
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Saudi Cement Companies Risk Ratings – Credit Risk perspective

Why are the Saudi Cement companies’ credit risk ratings so low? What is their secret and is this secret sustainable? Using 6 Sigma’s Credit Risk System we estimated various Saudi companies’ risk ratings. Of these, the Cement companies showed very low ratings, well below what
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How can a company in UAE’s Ras Al Khaimah emirate become the number one producer and seller of Ceramics in the world? A Credit Risk perspective.

RAK Ceramics has grown to be the largest ceramic producer in the world. Yes the world, competing with the Chinese, Italian and everyone else. It is the darling of the UAE, and a shining example of an emerging market company taking on the big boys.
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