Many Would Be Envious Of Edarat Communication and Information Technology's (TADAWUL:9557) Excellent Returns On Capital
Apr 17
Saudi Arabian (Tadawul) Tech Sector Analysis
UpdatedApr 17, 2024
DataAggregated Company Financials
Companies14
- 7D-4.5%
- 3M3.3%
- 1Y68.9%
- YTD11.5%
Over the last 7 days, the Tech industry has dropped 1.3%, driven by a pullback from Elm of 6.2%. Meanwhile, Al Moammar Information Systems actually outperformed within the industry, gaining 5.2% in the last week. In the past year, the industry has gained 74%. Earnings are forecast to grow by 15% annually.
Sector Valuation and Performance
Has the Saudi Arabian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 17 Apr 2024 | ر.س133.8b | ر.س20.7b | ر.س2.8b | 36.4x | 47.9x | 6.5x |
| Fri, 15 Mar 2024 | ر.س136.4b | ر.س20.6b | ر.س2.9b | 37.9x | 47.9x | 6.6x |
| Sun, 11 Feb 2024 | ر.س127.9b | ر.س19.8b | ر.س2.8b | 34.4x | 46.3x | 6.5x |
| Tue, 09 Jan 2024 | ر.س116.4b | ر.س19.8b | ر.س2.8b | 30.5x | 42.1x | 5.9x |
| Thu, 07 Dec 2023 | ر.س109.0b | ر.س19.8b | ر.س2.8b | 28.6x | 39.4x | 5.5x |
| Sat, 04 Nov 2023 | ر.س100.9b | ر.س18.4b | ر.س2.7b | 26.9x | 37.2x | 5.5x |
| Mon, 02 Oct 2023 | ر.س109.7b | ر.س18.4b | ر.س2.7b | 28.6x | 40.4x | 6x |
| Wed, 30 Aug 2023 | ر.س118.6b | ر.س18.4b | ر.س2.7b | 27.8x | 43.6x | 6.5x |
| Fri, 28 Jul 2023 | ر.س109.3b | ر.س17.2b | ر.س2.4b | 31.1x | 44.6x | 6.4x |
| Sun, 25 Jun 2023 | ر.س95.3b | ر.س17.2b | ر.س2.4b | 32.5x | 38.9x | 5.5x |
| Tue, 23 May 2023 | ر.س82.2b | ر.س16.8b | ر.س2.4b | 27.1x | 34.2x | 4.9x |
| Thu, 20 Apr 2023 | ر.س77.0b | ر.س16.2b | ر.س2.3b | 28.7x | 33.2x | 4.8x |
| Sat, 18 Mar 2023 | ر.س68.4b | ر.س16.1b | ر.س2.2b | 26.2x | 31x | 4.3x |
| Mon, 13 Feb 2023 | ر.س66.1b | ر.س15.8b | ر.س2.1b | 28.3x | 31.4x | 4.2x |
| Wed, 11 Jan 2023 | ر.س62.6b | ر.س15.8b | ر.س2.1b | 27.5x | 30.2x | 4x |
| Fri, 09 Dec 2022 | ر.س60.8b | ر.س15.8b | ر.س2.1b | 26.2x | 29.3x | 3.9x |
| Sun, 06 Nov 2022 | ر.س62.0b | ر.س14.7b | ر.س1.8b | 30x | 33.6x | 4.2x |
| Tue, 04 Oct 2022 | ر.س58.9b | ر.س14.4b | ر.س1.8b | 30.9x | 32.7x | 4.1x |
| Thu, 01 Sep 2022 | ر.س65.6b | ر.س14.3b | ر.س1.8b | 36.3x | 36.7x | 4.6x |
| Sat, 30 Jul 2022 | ر.س56.2b | ر.س13.5b | ر.س1.7b | 38x | 33.7x | 4.1x |
| Mon, 27 Jun 2022 | ر.س48.8b | ر.س13.5b | ر.س1.7b | 33x | 29.3x | 3.6x |
| Wed, 25 May 2022 | ر.س49.7b | ر.س13.3b | ر.س1.6b | 33.1x | 30.2x | 3.7x |
| Fri, 22 Apr 2022 | ر.س50.1b | ر.س12.5b | ر.س1.5b | 32.4x | 33.6x | 4x |
| Sun, 20 Mar 2022 | ر.س45.5b | ر.س12.8b | ر.س1.5b | 29.5x | 30.1x | 3.6x |
| Tue, 15 Feb 2022 | ر.س29.5b | ر.س8.5b | ر.س866.5m | 52.4x | 34.1x | 3.5x |
| Thu, 13 Jan 2022 | ر.س29.1b | ر.س8.5b | ر.س866.5m | 54.1x | 33.6x | 3.4x |
| Sat, 11 Dec 2021 | ر.س26.8b | ر.س8.5b | ر.س866.5m | 48.5x | 31x | 3.2x |
| Mon, 08 Nov 2021 | ر.س29.0b | ر.س8.5b | ر.س866.5m | n/a | 33.5x | 3.4x |
| Wed, 06 Oct 2021 | ر.س5.7b | ر.س975.0m | ر.س72.2m | 54x | 79x | 5.9x |
| Fri, 03 Sep 2021 | ر.س5.9b | ر.س975.0m | ر.س72.2m | 57.3x | 82x | 6.1x |
| Sun, 01 Aug 2021 | ر.س5.4b | ر.س975.0m | ر.س72.2m | 50.9x | 74.4x | 5.5x |
| Wed, 05 May 2021 | ر.س3.5b | ر.س1.0b | ر.س75.0m | 29.3x | 47.3x | 3.4x |
Price to Earnings Ratio
47.3x
Current Industry PE
- Investors are optimistic on the Saudi Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 48.1x which is higher than its 3-year average PE of 40.1x.
- The 3-year average PS ratio of 4.7x is lower than the industry's current PS ratio of 6.5x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 234% per year over the last three years.
- Revenues for these companies have grown 171% 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 Tech sector?
| SA Market | -1.10% | |
| Tech | -4.53% | |
| Software | 1.80% | |
| Communications | 0% | |
| Tech Hardware | 0% | |
| Electronic Equipment and Components | 0% | |
| Semiconductors | 0% | |
| IT | -4.57% | |
Industry PE
- Investors are most optimistic about the IT industry which is trading above its 3-year average PE ratio of 36.3x.
- Analysts are expecting annual earnings growth of 15.1%, which is higher than its past year's earnings growth of 1.4% per year.
Forecasted Growth
- Analysts are most optimistic on the IT industry, expecting annual earnings growth of 15% over the next 5 years.
- This is better than its past earnings growth rate of 1.4% per year.
- In contrast, the IT industry is expected to see its earnings grow by 15% 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 | |
|---|---|---|---|---|---|
| 7200 Al Moammar Information Systems | ر.س158.80 | 5.2% +ر.س233.3m | 30.2% | PE339.9x | |
| 9550 Sure Global Tech | ر.س96.50 | 4.0% +ر.س28.5m | 152.6% | n/a | |
| 9543 Saudi Networkers Services | ر.س75.00 | 3.0% +ر.س13.2m | 31.8% | PE15.7x | |
| 7201 Arab Sea Information Systems | ر.س7.54 | 1.8% +ر.س13.0m | -6.8% | PS18.3x | |
| 9558 Alqemam for Computer Systems | ر.س96.80 | 3.1% +ر.س8.7m | 43.4% | PE19.9x |
