8060:TSECanon Marketing Japan Incorporated Analysis

Walaa Cooperative Insurance is trading at SAR 10.52, just above its technical support of SAR 9.72 and below the SMA‑200 of SAR 10.81, indicating a neutral price stance. Technical indicators are mildly bullish – the 20‑day SMA sits slightly above the 50‑day SMA, the RSI is at 59 (well below overbought levels), and the MACD histogram is positive – while volume is on an upward trend. Valuation appears attractive, with a forward PE near 5 versus an industry average of 17, and a price‑to‑book below 1, suggesting the stock is priced at a discount. However, the fundamentals are distressed: revenue fell 16%, gross margin is negative, trailing EPS is –0.72 and operating cash flow is strongly negative, leading to a negative ROE and ROA. The company does hold a sizable cash buffer (≈SAR 1.22 bn) and low absolute debt, and forward EPS forecasts turn positive, which could support a recovery. The stock’s beta is slightly negative, volatility is high at 21% over 30 days, and liquidity is moderate given today’s volume is below its 10‑day average. Overall, the price reflects a blend of cheap valuation and significant earnings risk.