Mubasher: MubasherTrade Research has closed its position in United International Transportation (Budget Saudi) at SAR 21.31 per share, with a negative return of 20.41%.

Budget Saudi followed in the footsteps of similar businesses in the Kingdom as well as the GCC region, as a result of lower oil prices and slow recovery, according to “Hidden Gems” report by MubasherTrade Research.

As for the company’s profitability ratios, EBITDA margin rose by 159 basis points (bps) year-on-year to 82.7% compared to 80.3%, following a 228 bps increase in the gross profit margin (GPM) to 75.6%. 

Meanwhile, the net income declined by 8% YoY to SAR 174.5 million in line with MTRe of SAR 171.8 million. 

Looking at the quarterly results, Budget’s revenues in the first quarter this year were quite flat YoY at SAR 298.9 million, while other income related to car sales dropped to SAR 1.4 million from SAR 5.9 million a year earlier.

Budget Saudi’s EBITDA margin was pushed to 57.1% down from 61.6% in the first quarter of 2016. 

“We are now implementing a ‘new’ maximum 20% stop loss policy when considering our Hidden Gems open positions,” the report added.