Many Would Be Envious Of Edarat Communication and Information Technology's (TADAWUL:9557) Excellent Returns On Capital
Apr 17
Saudi Arabian (Tadawul) IT Industry Analysis
UpdatedApr 24, 2024
DataAggregated Company Financials
Companies12
- 7D-2.2%
- 3M2.2%
- 1Y65.6%
- YTD9.2%
Over the last 7 days, the IT industry has dropped 2.2%, driven by a pullback from Arabian Internet and Communication Services of 2.8%. In the past year, the industry has gained 66%. Looking forward, earnings are forecast to grow by 15% annually.
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, 25 Apr 2024 | ر.س125.9b | ر.س20.6b | ر.س2.8b | 38.5x | 44.9x | 6.1x |
| Sat, 23 Mar 2024 | ر.س134.2b | ر.س20.5b | ر.س2.9b | 37.8x | 46.8x | 6.5x |
| Mon, 19 Feb 2024 | ر.س137.1b | ر.س19.7b | ر.س2.8b | 36.7x | 49.2x | 7x |
| Wed, 17 Jan 2024 | ر.س125.4b | ر.س19.7b | ر.س2.8b | 32.2x | 45x | 6.4x |
| Fri, 15 Dec 2023 | ر.س110.3b | ر.س19.7b | ر.س2.8b | 29.9x | 39.6x | 5.6x |
| Sun, 12 Nov 2023 | ر.س102.2b | ر.س19.5b | ر.س2.9b | 26.9x | 35.5x | 5.2x |
| Tue, 10 Oct 2023 | ر.س104.2b | ر.س18.4b | ر.س2.7b | 30.1x | 38.1x | 5.7x |
| Thu, 07 Sep 2023 | ر.س114.9b | ر.س18.4b | ر.س2.7b | 28x | 42x | 6.3x |
| Sat, 05 Aug 2023 | ر.س102.1b | ر.س17.1b | ر.س2.5b | 31.3x | 41.5x | 6x |
| Mon, 03 Jul 2023 | ر.س94.5b | ر.س17.1b | ر.س2.5b | 32x | 38.4x | 5.5x |
| Wed, 31 May 2023 | ر.س80.7b | ر.س16.8b | ر.س2.4b | 29.5x | 33.4x | 4.8x |
| Fri, 28 Apr 2023 | ر.س77.0b | ر.س16.1b | ر.س2.3b | 28.4x | 33.2x | 4.8x |
| Sun, 26 Mar 2023 | ر.س71.9b | ر.س16.0b | ر.س2.2b | 25.7x | 32.7x | 4.5x |
| Tue, 21 Feb 2023 | ر.س66.3b | ر.س15.8b | ر.س2.1b | 24.3x | 31.6x | 4.2x |
| Thu, 19 Jan 2023 | ر.س61.5b | ر.س15.7b | ر.س2.1b | 24.7x | 29.8x | 3.9x |
| Sat, 17 Dec 2022 | ر.س65.1b | ر.س15.7b | ر.س2.1b | 26.5x | 31.5x | 4.1x |
| Mon, 14 Nov 2022 | ر.س56.2b | ر.س14.7b | ر.س1.9b | 28.5x | 29.1x | 3.8x |
| Wed, 12 Oct 2022 | ر.س59.9b | ر.س14.3b | ر.س1.8b | 31.1x | 33.5x | 4.2x |
| Fri, 09 Sep 2022 | ر.س60.6b | ر.س14.3b | ر.س1.8b | 34.9x | 34x | 4.2x |
| Sun, 07 Aug 2022 | ر.س54.7b | ر.س13.8b | ر.س1.7b | 35.8x | 32.8x | 4x |
| Tue, 05 Jul 2022 | ر.س47.0b | ر.س13.4b | ر.س1.6b | 30x | 28.6x | 3.5x |
| Thu, 02 Jun 2022 | ر.س49.6b | ر.س13.3b | ر.س1.6b | 34.9x | 30.5x | 3.7x |
| Sat, 30 Apr 2022 | ر.س54.3b | ر.س13.0b | ر.س1.5b | 36.2x | 35x | 4.2x |
| Mon, 28 Mar 2022 | ر.س43.6b | ر.س12.8b | ر.س1.5b | 30.1x | 29.3x | 3.4x |
| Wed, 23 Feb 2022 | ر.س43.6b | ر.س12.5b | ر.س1.5b | 29.1x | 29.2x | 3.5x |
| Fri, 21 Jan 2022 | ر.س29.3b | ر.س8.5b | ر.س864.1m | 44.1x | 33.9x | 3.5x |
| Sun, 19 Dec 2021 | ر.س25.6b | ر.س8.5b | ر.س864.1m | 38.3x | 29.6x | 3x |
| Tue, 16 Nov 2021 | ر.س27.3b | ر.س8.5b | ر.س864.1m | 40.4x | 31.6x | 3.2x |
| Thu, 14 Oct 2021 | ر.س28.2b | ر.س8.4b | ر.س850.5m | 41.8x | 33.2x | 3.3x |
| Sat, 11 Sep 2021 | ر.س4.4b | ر.س940.4m | ر.س75.5m | 57.7x | 57.7x | 4.6x |
| Mon, 09 Aug 2021 | ر.س4.0b | ر.س940.4m | ر.س75.5m | 53x | 53x | 4.3x |
| Sun, 02 May 2021 | ر.س2.6b | ر.س1.0b | ر.س89.5m | 29.3x | 29.3x | 2.6x |
Price to Earnings Ratio
29.3x
Current Industry PE
- Investors are optimistic on the Saudi IT industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 44.9x which is higher than its 3-year average PE of 36.4x.
- The 3-year average PS ratio of 4.5x is lower than the industry's current PS ratio of 6.1x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 215% per year over the last three years.
- Revenues for these companies have grown 173% 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 | 0.39% | |
| Tech | -2.19% | |
| IT | -2.23% | |
| Internet Services and Infrastructure | 0% | |
| Data Processing Services | 0% | |
| IT Consulting | -2.23% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 36.5x.
- Analysts are expecting annual earnings growth of 15.1%, which is higher than its past year's earnings growth of 1.4% per year.
- Investors are most pessimistic about the IT Consulting industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 36.5x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting 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 Consulting 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 | |
|---|---|---|---|---|---|
| 7203 Elm | ر.س912.00 | 0.2% +ر.س155.4m | 106.3% | PE52.2x | |
| 9534 Saudi Azm for Communication and Information Technology | ر.س16.84 | 11.2% +ر.س102.0m | 46.4% | PE39.6x | |
| 9557 Edarat Communication and Information Technology | ر.س289.00 | 2.3% +ر.س16.6m | 185.4% | PE41.9x | |
| 9524 Advance International Company for Communication and Information Technology | ر.س5.00 | 1.0% +ر.س3.2m | 30.6% | PE47.6x |
