Is Southern Province Cement Company (TADAWUL:3050) Trading At A 48% Discount?
Nov 28
Saudi Arabian (Tadawul) Materials Sector Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies49
- 7D-2.7%
- 3M-20.3%
- 1Y-11.8%
- YTD-15.9%
Over the last 7 days, the Materials industry has dropped 2.7%, driven by a pullback from Saudi Arabian Mining Company (Ma'aden) of 5.1%. The industry has fallen 12% in the last year. Looking forward, earnings are forecast to grow by 2.0% annually.
Sector Valuation and Performance
Has the Saudi Arabian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 29 Nov 2022 | ر.س650.6b | ر.س331.7b | ر.س53.8b | 20.9x | 12.1x | 2x |
| Thu, 27 Oct 2022 | ر.س751.4b | ر.س323.0b | ر.س58.1b | 21x | 12.9x | 2.3x |
| Sat, 24 Sep 2022 | ر.س708.9b | ر.س322.5b | ر.س58.3b | 21.5x | 12.2x | 2.2x |
| Mon, 22 Aug 2022 | ر.س795.6b | ر.س323.0b | ر.س58.5b | 23.8x | 13.6x | 2.5x |
| Wed, 20 Jul 2022 | ر.س660.5b | ر.س297.3b | ر.س54.1b | 19.8x | 12.2x | 2.2x |
| Fri, 17 Jun 2022 | ر.س749.1b | ر.س297.3b | ر.س54.1b | 21x | 13.8x | 2.5x |
| Sun, 15 May 2022 | ر.س829.7b | ر.س282.0b | ر.س53.2b | 22.4x | 15.6x | 2.9x |
| Tue, 12 Apr 2022 | ر.س957.3b | ر.س273.4b | ر.س49.3b | 23.4x | 19.4x | 3.5x |
| Thu, 10 Mar 2022 | ر.س949.4b | ر.س322.1b | ر.س57.9b | 19.6x | 16.4x | 2.9x |
| Sat, 05 Feb 2022 | ر.س816.6b | ر.س293.7b | ر.س50.0b | 19.5x | 16.3x | 2.8x |
| Mon, 03 Jan 2022 | ر.س777.0b | ر.س301.0b | ر.س50.2b | 18.3x | 15.5x | 2.6x |
| Wed, 01 Dec 2021 | ر.س730.3b | ر.س301.1b | ر.س50.2b | 18.3x | 14.6x | 2.4x |
| Fri, 29 Oct 2021 | ر.س846.2b | ر.س290.1b | ر.س43.3b | 20.8x | 19.6x | 2.9x |
| Sun, 26 Sep 2021 | ر.س803.7b | ر.س286.7b | ر.س41.1b | 21x | 19.6x | 2.8x |
| Tue, 24 Aug 2021 | ر.س765.2b | ر.س287.2b | ر.س41.1b | 20.1x | 18.6x | 2.7x |
| Wed, 30 Jun 2021 | ر.س763.9b | ر.س287.2b | ر.س41.1b | 21.8x | 18.6x | 2.7x |
| Sat, 03 Apr 2021 | ر.س709.4b | ر.س209.7b | ر.س15.2b | 25.1x | 46.7x | 3.4x |
| Tue, 05 Jan 2021 | ر.س599.2b | ر.س196.8b | ر.س4.9b | 23.2x | 121.8x | 3x |
| Fri, 09 Oct 2020 | ر.س540.6b | ر.س199.7b | ر.س402.1m | 19.4x | 1344.5x | 2.7x |
| Thu, 02 Jul 2020 | ر.س488.6b | ر.س199.3b | -ر.س567,470,584.00 | 16.6x | -861x | 2.5x |
| Sun, 05 Apr 2020 | ر.س402.5b | ر.س211.8b | ر.س4.6b | 16.4x | 87.3x | 1.9x |
| Wed, 08 Jan 2020 | ر.س542.6b | ر.س220.1b | ر.س10.7b | 21.9x | 50.9x | 2.5x |
Price to Earnings Ratio
33.9x
Current Industry PE
- Investors are pessimistic on the Saudi Materials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 12.1x which is lower than its 3-year average PE of 74.8x.
- The 3-year average PS ratio of 2.7x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Materials industry have grown 53% per year over the last three years.
- Revenues for these companies have grown 13% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Saudi Arabian Materials sector?
| SA Market | -1.95% | |
| Materials | -2.74% | |
| Chemicals | -1.56% | |
| Basic Materials | -3.28% | |
| Metals and Mining | -5.25% | |
| Packaging | -6.60% | |
| Paper and Forestry Products | -7.80% | |
Industry PE
- Investors are most optimistic about the Packaging industry even though it's trading below its 3-year average PE ratio of 117x.
- Analysts are expecting annual earnings growth of 50.0%, which is lower than the prior year's growth of 79.6% per year.
- Investors are most pessimistic about the Paper and Forestry Products industry, which is trading below its 3-year average of 9.9x.
Forecasted Growth
- Analysts are most optimistic on the Packaging industry, expecting annual earnings growth of 50% over the next 5 years.
- However this is lower than its past earnings growth rate of 80% per year.
- In contrast, the Metals and Mining industry is expected to see its earnings decline by 9.5% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 2010 Saudi Basic Industries | ر.س82.50 | 0.6% +ر.س1.5b | -25.8% | PE11.7x | |
| 2330 Advanced Petrochemical | ر.س41.75 | 1.6% +ر.س169.0m | -29.9% | PE23.5x | |
| 2250 Saudi Industrial Investment Group | ر.س20.20 | 0.3% +ر.س45.3m | -35.6% | PE21.9x | |
| 9512 Riyadh Cement | ر.س30.00 | 0.5% +ر.س18.0m | -2.1% | PE26.4x | |
| 3008 Al Kathiri Holding | ر.س39.20 | 0.3% +ر.س1.1m | -37.1% | PS4.9x |