Agility (PWC Logistics) announced their CY 08 results today with a decrease of 8% in bottom line earning, reaching KD 141.3 million. EPS decreased from 147 fils in 07 to 138 fils in 08. Q4 earnings remained flat QoQ but decreased 3.1% YoY, totaling KD 134 million. These numbers did not deviate from analyst expectations but the stock saw some downward pressure today (650 fils – down 50 fils) as the board announced that they were not distributing any dividends this year as opposed to a cash dividend of 80 fils/share in 07. In my opinion I think it’s a smart move from the board seeing that most of their bonds will mature at Q3 09 and the 25% capital increase was canceled.
Agility has strong balance sheet position with KD 1,641 million in total assets gaining 7% YoY. Moreover, Agility rescheduled most of its short-term debt through regional and international banks. As a result, more that 60% of their debt are due after 2010, thus giving Agility a strong cash position in the current credit conditions.
“We look to come out of the global downturn stronger than ever. We have an excellent cash position, healthy debt profile, a diversified customer base and an established footprint in the emerging markets that offer the most potential for future growth.” Tarek Sultan, Chairman and Managing Director.
Agility is trading at a P/E of 4.7x 2008 earnings; given the fact that KSE is trading at a higher multiple than regional markets, Agility is trading at a sharp discount to regional and global peers.
I would take advantage of the selling pressure and accumulate the stock. That’s only my opinion, don’t take my word for it! 
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hi
i think when us troops leave iraq(2010 as obama plan ), agilty revenue will certinatly decrease …….so for that reason maybe they didnot declared dividend
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Do you think they’ll call for a capital raise?
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I would be more concerned with their 09 P/E since 08’s is irrelevant at this point. Can u please provide it and if possible the percentage of their revenues from US contracts in Iraq?
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Abdulateef; True, but agility’s strategy is to expand in emerging markets and diversify their income. I don’t have the actual numbers but I’m guessing that most of their business is from the US army
Ra’ad: several reports mentioned that they cancelled their capital increase, so im guessing that they did cancel it.
Keynesian: according to Zawya’s estimates, the expected 09 P/E is 4.9x, the full financials are not yet out, I’ll try to get you the figure once thy’re out
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[...] little less that 2 months ago a posted about Agility’s FY08 earnings. The market viewed these earnings negatively and adding the fact that they didn’t pay out [...]
[...] Agility’s 2008 Results: No Surprise and No Dividends var addthis_pub = 'alphadinar'; var addthis_brand = 'Alpha Dinar';var addthis_language = 'en'; (No Ratings Yet) Loading … [...]