Analysis Article • May 16
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- 7D1.5%
- 3M23.2%
- 1Y-20.0%
- YTD-4.8%
In the last week, the IT industry is flat overall, with Edarat Communication and Information Technology standing out by going down 4.9%. As for the longer term, the industry has declined 21% in the last year. 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 |
|---|---|---|---|---|---|---|
| Mon, 15 Jun 2026 | ر.س94.5b | ر.س28.4b | ر.س4.2b | 17.7x | 22.3x | 3.3x |
| Wed, 13 May 2026 | ر.س93.8b | ر.س27.6b | ر.س4.1b | 23.1x | 23.1x | 3.4x |
| Fri, 10 Apr 2026 | ر.س77.5b | ر.س27.2b | ر.س4.1b | 18.2x | 19x | 2.8x |
| Sun, 08 Mar 2026 | ر.س77.1b | ر.س26.5b | ر.س4.1b | 15x | 18.6x | 2.9x |
| Tue, 03 Feb 2026 | ر.س101.5b | ر.س26.3b | ر.س4.2b | 24.3x | 24.3x | 3.9x |
| Thu, 01 Jan 2026 | ر.س98.2b | ر.س26.3b | ر.س4.2b | 25x | 23.5x | 3.7x |
| Sat, 29 Nov 2025 | ر.س99.6b | ر.س26.1b | ر.س4.2b | 25x | 24x | 3.8x |
| Mon, 27 Oct 2025 | ر.س116.4b | ر.س25.1b | ر.س4.1b | 24.3x | 28.1x | 4.6x |
| Wed, 24 Sep 2025 | ر.س112.8b | ر.س25.1b | ر.س4.1b | 27.9x | 27.3x | 4.5x |
| Fri, 22 Aug 2025 | ر.س108.7b | ر.س25.0b | ر.س4.1b | 28.4x | 26.4x | 4.4x |
| Sun, 20 Jul 2025 | ر.س114.3b | ر.س24.4b | ر.س4.0b | 30.8x | 28.3x | 4.7x |
| Tue, 17 Jun 2025 | ر.س118.6b | ر.س24.3b | ر.س4.0b | 23.1x | 29.3x | 4.9x |
| Thu, 15 May 2025 | ر.س129.2b | ر.س23.3b | ر.س3.9b | 29.5x | 33.3x | 5.5x |
| Sat, 12 Apr 2025 | ر.س123.4b | ر.س23.3b | ر.س3.9b | 31.7x | 32x | 5.3x |
| Mon, 10 Mar 2025 | ر.س125.4b | ر.س23.4b | ر.س3.9b | 34x | 32.5x | 5.4x |
| Wed, 05 Feb 2025 | ر.س141.2b | ر.س22.0b | ر.س3.5b | 38x | 40.2x | 6.4x |
| Fri, 03 Jan 2025 | ر.س138.0b | ر.س22.0b | ر.س3.5b | 38.6x | 39.3x | 6.3x |
| Sun, 01 Dec 2024 | ر.س131.9b | ر.س22.0b | ر.س3.5b | 40x | 37.5x | 6x |
| Tue, 29 Oct 2024 | ر.س127.1b | ر.س21.8b | ر.س3.2b | 30x | 39.8x | 5.8x |
| Thu, 26 Sep 2024 | ر.س132.7b | ر.س21.7b | ر.س3.2b | 29.2x | 41.6x | 6.1x |
| Sat, 24 Aug 2024 | ر.س129.3b | ر.س21.7b | ر.س3.2b | 29.6x | 40.7x | 6x |
| Mon, 22 Jul 2024 | ر.س118.4b | ر.س21.2b | ر.س2.9b | 34.7x | 40.3x | 5.6x |
| Wed, 19 Jun 2024 | ر.س110.5b | ر.س21.2b | ر.س2.9b | 33.4x | 37.7x | 5.2x |
| Fri, 17 May 2024 | ر.س114.5b | ر.س20.8b | ر.س2.9b | 36x | 40.2x | 5.5x |
| Sun, 14 Apr 2024 | ر.س134.7b | ر.س20.6b | ر.س2.8b | 37.8x | 48.1x | 6.5x |
| Tue, 12 Mar 2024 | ر.س130.1b | ر.س20.2b | ر.س2.8b | 37.6x | 47.2x | 6.5x |
| Thu, 08 Feb 2024 | ر.س127.8b | ر.س19.7b | ر.س2.8b | 34.8x | 45.9x | 6.5x |
| Sat, 06 Jan 2024 | ر.س115.5b | ر.س19.7b | ر.س2.8b | 31x | 41.5x | 5.9x |
| Mon, 04 Dec 2023 | ر.س104.5b | ر.س19.7b | ر.س2.8b | 28.2x | 37.5x | 5.3x |
| Wed, 01 Nov 2023 | ر.س102.3b | ر.س18.4b | ر.س2.7b | 27.3x | 37.5x | 5.6x |
| Fri, 29 Sep 2023 | ر.س109.3b | ر.س18.4b | ر.س2.7b | 28.7x | 40x | 6x |
| Sun, 27 Aug 2023 | ر.س114.5b | ر.س18.3b | ر.س2.7b | 28.5x | 41.8x | 6.3x |
| Tue, 25 Jul 2023 | ر.س110.1b | ر.س17.1b | ر.س2.5b | 30.1x | 44.7x | 6.4x |
| Thu, 22 Jun 2023 | ر.س93.2b | ر.س17.1b | ر.س2.5b | 32.1x | 37.9x | 5.4x |
Price to Earnings Ratio
37.9x
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 22.3x which is lower than its 3-year average PE of 34.5x.
- The 3-year average PS ratio of 5.2x 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 | 0.26% | |
| Tech | 1.44% | |
| IT | 1.45% | |
| IT Consulting | 1.45% | |
| 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 34.5x.
- Analysts are expecting annual earnings growth of 11.5%, 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 34.5x.
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.س704.00 | 2.0% +ر.س1.1b | -26.3% | PE24.3x | |
| 7200 Al Moammar Information Systems | ر.س195.00 | 5.9% +ر.س324.0m | 46.8% | PE78.7x | |
| 7202 Arabian Internet and Communication Services | ر.س215.20 | 0.4% +ر.س107.1m | -13.9% | PE16.9x | |
| 7204 Perfect Presentation for Commercial Services | ر.س6.67 | 1.7% +ر.س36.3m | -34.9% | PE16.3x | |
| 9637 Axelerated Solutions for Information and Communication Technology | ر.س25.96 | 1.8% +ر.س12.9m | 3.8% | PE14x |