There's Reason For Concern Over Arab Sea Information Systems Company's (TADAWUL:7201) Massive 29% Price Jump
Apr 18
Saudi Arabian (Tadawul) Tech Sector Analysis
UpdatedJun 08, 2023
DataAggregated Company Financials
Companies13
- 7D18.9%
- 3M41.3%
- 1Y68.2%
- YTD53.1%
Over the last 7 days, the Tech industry has risen 19%, driven by gains from Elm of 26%. Meanwhile, Perfect Presentation for Commercial Services actually underperformed within the industry, shrinking 90% in the last week. In the last 12 months, the industry was up 68%. Earnings are forecast to grow by 13% 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 |
|---|---|---|---|---|---|---|
| Thu, 08 Jun 2023 | ر.س96.1b | ر.س17.2b | ر.س2.4b | 30.4x | 39.2x | 5.6x |
| Sat, 06 May 2023 | ر.س76.9b | ر.س16.2b | ر.س2.3b | 27.7x | 33.3x | 4.8x |
| Mon, 03 Apr 2023 | ر.س73.5b | ر.س16.1b | ر.س2.2b | 26.5x | 33.3x | 4.6x |
| Wed, 01 Mar 2023 | ر.س67.3b | ر.س15.8b | ر.س2.1b | 27.6x | 32x | 4.3x |
| Fri, 27 Jan 2023 | ر.س63.5b | ر.س15.8b | ر.س2.1b | 25x | 30.4x | 4x |
| Sun, 25 Dec 2022 | ر.س62.4b | ر.س15.8b | ر.س2.1b | 27.2x | 30.1x | 4x |
| Tue, 22 Nov 2022 | ر.س59.3b | ر.س15.8b | ر.س2.1b | 26.5x | 28.6x | 3.8x |
| Thu, 20 Oct 2022 | ر.س62.1b | ر.س14.4b | ر.س1.8b | 31.9x | 34.5x | 4.3x |
| Sat, 17 Sep 2022 | ر.س62.5b | ر.س14.4b | ر.س1.8b | 34.3x | 34.9x | 4.3x |
| Mon, 15 Aug 2022 | ر.س56.0b | ر.س13.9b | ر.س1.7b | 37.6x | 33.2x | 4x |
| Wed, 13 Jul 2022 | ر.س49.4b | ر.س13.5b | ر.س1.7b | 32.7x | 29.7x | 3.7x |
| Fri, 10 Jun 2022 | ر.س53.9b | ر.س13.3b | ر.س1.6b | 39.1x | 32.8x | 4x |
| Sun, 08 May 2022 | ر.س56.2b | ر.س13.0b | ر.س1.6b | 37.7x | 35.8x | 4.3x |
| Tue, 05 Apr 2022 | ر.س48.1b | ر.س12.8b | ر.س1.5b | 34.4x | 31.9x | 3.8x |
| Thu, 03 Mar 2022 | ر.س45.1b | ر.س12.5b | ر.س1.5b | 40.1x | 30.1x | 3.6x |
| Sat, 29 Jan 2022 | ر.س29.8b | ر.س8.5b | ر.س866.5m | 53.7x | 34.4x | 3.5x |
| Mon, 27 Dec 2021 | ر.س27.2b | ر.س8.5b | ر.س866.5m | n/a | 31.4x | 3.2x |
| Wed, 24 Nov 2021 | ر.س28.8b | ر.س8.5b | ر.س866.5m | 49.6x | 33.2x | 3.4x |
| Fri, 22 Oct 2021 | ر.س30.1b | ر.س8.5b | ر.س847.2m | 42.2x | 35.6x | 3.6x |
| Sun, 19 Sep 2021 | ر.س5.8b | ر.س975.0m | ر.س72.2m | 55.9x | 79.8x | 5.9x |
| Tue, 17 Aug 2021 | ر.س5.6b | ر.س975.0m | ر.س72.2m | 53.2x | 77.1x | 5.7x |
| Tue, 01 Jun 2021 | ر.س3.7b | ر.س1.0b | ر.س75.0m | 30.6x | 49x | 3.5x |
| Fri, 05 Mar 2021 | ر.س3.8b | ر.س1.0b | ر.س74.5m | 29x | 50.4x | 3.6x |
| Mon, 07 Dec 2020 | ر.س2.6b | ر.س1.1b | ر.س113.2m | 43.7x | 23.1x | 2.3x |
| Thu, 10 Sep 2020 | ر.س1.9b | ر.س1.1b | ر.س110.0m | 25.5x | 17x | 1.7x |
Price to Earnings Ratio
11.8x
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 39.2x which is higher than its 3-year average PE of 36.2x.
- The 3-year average PS ratio of 3.6x is lower than the industry's current PS ratio of 5.6x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 181% per year over the last three years.
- Revenues for these companies have grown 148% 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 | 3.00% | |
| Tech | 18.88% | |
| IT | 19.04% | |
| Software | 5.80% | |
| Communications | 0% | |
| Tech Hardware | 0% | |
| Electronic Equipment and Components | 0% | |
| Semiconductors | 0% | |
Industry PE
- Investors are most optimistic about the IT industry which is trading above its 3-year average PE ratio of 29.8x.
- Analysts are expecting annual earnings growth of 13.4%, which is lower than the prior year's growth of 49.9% per year.
Forecasted Growth
- Analysts are most optimistic on the IT industry, expecting annual earnings growth of 13% over the next 5 years.
- However this is lower than its past earnings growth rate of 50% per year.
- In contrast, the IT industry is expected to see its earnings grow by 13% 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 | |
|---|---|---|---|---|---|
| 7203 Elm | ر.س558.00 | 25.8% +ر.س8.9b | 98.6% | PE43.2x | |
| 7202 Arabian Internet and Communication Services | ر.س336.00 | 15.5% +ر.س5.4b | 50.8% | PE37.2x | |
| 7200 Al Moammar Information Systems | ر.س150.60 | 11.4% +ر.س462.0m | 50.3% | PE32.8x | |
| 7201 Arab Sea Information Systems | ر.س88.50 | 6.1% +ر.س51.0m | -46.4% | PS21.5x | |
| 9534 Saudi Azm for Communication and Information Technology | ر.س240.00 | 4.3% +ر.س30.0m | 29.4% | PE32.6x |
