Analysis Article • May 16
Have your own idea? Try our Stock Screener
- 7D2.1%
- 3M8.1%
- 1Y-18.4%
- YTD-6.7%
Over the last 7 days, the IT industry has risen 2.1%, driven by gains from Elm of 2.5%. Meanwhile, Saudi Azm for Communication and Information Technology actually underperformed within the industry, shrinking 5.4% in the last week. In the past year, the industry is down 18%. As for the next few years, earnings are expected to grow by 11% per annum.
Industry Valuation and Performance
Has the Saudi Arabian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 30 Jul 2026 | ر.س93.0b | ر.س28.4b | ر.س4.2b | 16.6x | 21.9x | 3.3x |
| Sat, 27 Jun 2026 | ر.س94.3b | ر.س28.4b | ر.س4.2b | 16.4x | 22.3x | 3.3x |
| Mon, 25 May 2026 | ر.س93.4b | ر.س28.4b | ر.س4.2b | 19x | 22x | 3.3x |
| Wed, 22 Apr 2026 | ر.س85.7b | ر.س27.4b | ر.س4.1b | 19.7x | 21.1x | 3.1x |
| Fri, 20 Mar 2026 | ر.س76.6b | ر.س27.2b | ر.س4.1b | 16.7x | 18.7x | 2.8x |
| Sun, 15 Feb 2026 | ر.س93.6b | ر.س26.3b | ر.س4.2b | 18.8x | 22.3x | 3.6x |
| Tue, 13 Jan 2026 | ر.س99.9b | ر.س26.3b | ر.س4.2b | 25x | 23.9x | 3.8x |
| Thu, 11 Dec 2025 | ر.س104.3b | ر.س26.1b | ر.س4.2b | 25x | 25.1x | 4x |
| Sat, 08 Nov 2025 | ر.س103.6b | ر.س26.1b | ر.س4.2b | 22.7x | 25x | 4x |
| Mon, 06 Oct 2025 | ر.س113.3b | ر.س25.1b | ر.س4.1b | 28.5x | 27.4x | 4.5x |
| Wed, 03 Sep 2025 | ر.س106.8b | ر.س25.0b | ر.س4.1b | 27.3x | 25.9x | 4.3x |
| Fri, 01 Aug 2025 | ر.س112.8b | ر.س24.4b | ر.س4.0b | 29.3x | 27.9x | 4.6x |
| Sun, 29 Jun 2025 | ر.س123.4b | ر.س24.4b | ر.س4.1b | 22.7x | 30.3x | 5.1x |
| Tue, 27 May 2025 | ر.س126.7b | ر.س23.7b | ر.س4.0b | 33.5x | 31.7x | 5.3x |
| Thu, 24 Apr 2025 | ر.س128.3b | ر.س23.3b | ر.س3.9b | 29.1x | 33.1x | 5.5x |
| Sat, 22 Mar 2025 | ر.س123.6b | ر.س23.4b | ر.س3.9b | 33.7x | 32.1x | 5.3x |
| Mon, 17 Feb 2025 | ر.س136.0b | ر.س22.0b | ر.س3.5b | 36.4x | 38.7x | 6.2x |
| Wed, 15 Jan 2025 | ر.س141.5b | ر.س22.0b | ر.س3.5b | 38.2x | 40.3x | 6.4x |
| Fri, 13 Dec 2024 | ر.س137.0b | ر.س22.0b | ر.س3.5b | 40.5x | 39x | 6.2x |
| Sun, 10 Nov 2024 | ر.س130.6b | ر.س22.1b | ر.س3.4b | 31.9x | 38x | 5.9x |
| Tue, 08 Oct 2024 | ر.س128.1b | ر.س21.7b | ر.س3.2b | 30x | 40.2x | 5.9x |
| Thu, 05 Sep 2024 | ر.س128.3b | ر.س21.7b | ر.س3.2b | 30x | 40.4x | 5.9x |
| Sat, 03 Aug 2024 | ر.س120.0b | ر.س21.3b | ر.س3.0b | 37.3x | 39.4x | 5.6x |
| Mon, 01 Jul 2024 | ر.س114.8b | ر.س21.2b | ر.س2.9b | 33.7x | 39.2x | 5.4x |
| Wed, 29 May 2024 | ر.س109.8b | ر.س21.0b | ر.س2.9b | 35.7x | 37.9x | 5.2x |
| Fri, 26 Apr 2024 | ر.س124.7b | ر.س20.6b | ر.س2.8b | 38.1x | 44.5x | 6x |
| Sun, 24 Mar 2024 | ر.س134.2b | ر.س20.5b | ر.س2.9b | 37.8x | 46.8x | 6.5x |
| Tue, 20 Feb 2024 | ر.س140.2b | ر.س19.7b | ر.س2.8b | 37.4x | 50.3x | 7.1x |
| Thu, 18 Jan 2024 | ر.س124.3b | ر.س19.7b | ر.س2.8b | 30.9x | 44.6x | 6.3x |
| Sat, 16 Dec 2023 | ر.س110.3b | ر.س19.7b | ر.س2.8b | 29.9x | 39.6x | 5.6x |
| Mon, 13 Nov 2023 | ر.س102.2b | ر.س19.5b | ر.س2.9b | 25.8x | 35.5x | 5.2x |
| Wed, 11 Oct 2023 | ر.س105.5b | ر.س18.4b | ر.س2.7b | 29.6x | 38.6x | 5.7x |
| Fri, 08 Sep 2023 | ر.س111.0b | ر.س18.4b | ر.س2.7b | 27.9x | 40.6x | 6x |
| Sun, 06 Aug 2023 | ر.س102.1b | ر.س17.1b | ر.س2.5b | 31.3x | 41.5x | 6x |
Price to Earnings Ratio
41.5x
Current Industry PE
- Investors are pessimistic on the Saudi IT 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 21.9x which is lower than its 3-year average PE of 33.8x.
- The 3-year average PS ratio of 5.1x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 20% per year over the last three years.
- Revenues for these companies have grown 18% 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 industry?
| SA Market | -1.51% | |
| Tech | 2.09% | |
| IT | 2.11% | |
| IT Consulting | 2.11% | |
| Data Processing Services | 0% | 0 |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 33.8x.
- Analysts are expecting annual earnings growth of 11.4%, which is higher than its past year's earnings decline of 5.7% per year.
- Investors are most pessimistic about the IT Consulting industry, which is trading below its 3-year average of 33.8x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 11% over the next 5 years.
- This is better than its past earnings decline of 5.7% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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.س675.50 | 2.5% +ر.س1.3b | -25.5% | PE23.4x | |
| 7202 Arabian Internet and Communication Services | ر.س211.00 | 3.4% +ر.س821.4m | -13.9% | PE16.6x | |
| 9543 Saudi Networkers Services | ر.س49.00 | 2.1% +ر.س7.5m | -6.9% | PE11.7x |