Naseej for Technology Co.'s (TADAWUL:9538) Popularity With Investors Is Under Threat From Overpricing
Aug 05
Saudi Arabian (Tadawul) IT Industry Analysis
UpdatedAug 23, 2024
DataAggregated Company Financials
Companies12
- 7D2.5%
- 3M16.2%
- 1Y12.8%
- YTD12.0%
The IT industry is up 2.5% in the last week, with Elm up 3.6%. This takes the industry's 12 month performance to a gain of 13%. As for the next few years, earnings are expected to grow by 16% 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 |
|---|---|---|---|---|---|---|
| Sat, 24 Aug 2024 | ر.س129.4b | 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 |
| Sat, 20 May 2023 | ر.س81.9b | ر.س16.8b | ر.س2.4b | 26.9x | 33.9x | 4.9x |
| Mon, 17 Apr 2023 | ر.س74.6b | ر.س16.1b | ر.س2.3b | 27.3x | 32x | 4.6x |
| Wed, 15 Mar 2023 | ر.س68.4b | ر.س16.0b | ر.س2.2b | 25.6x | 31.1x | 4.3x |
| Fri, 10 Feb 2023 | ر.س66.3b | ر.س15.8b | ر.س2.1b | 25.2x | 31.6x | 4.2x |
| Sun, 08 Jan 2023 | ر.س61.0b | ر.س15.7b | ر.س2.1b | 25.9x | 29.5x | 3.9x |
| Tue, 06 Dec 2022 | ر.س59.9b | ر.س15.7b | ر.س2.1b | 25.5x | 29x | 3.8x |
| Thu, 03 Nov 2022 | ر.س61.2b | ر.س14.6b | ر.س1.8b | 28.9x | 33.4x | 4.2x |
| Sat, 01 Oct 2022 | ر.س57.2b | ر.س14.3b | ر.س1.8b | 30.5x | 31.9x | 4x |
| Mon, 29 Aug 2022 | ر.س61.9b | ر.س14.3b | ر.س1.8b | 34.8x | 34.8x | 4.3x |
| Wed, 27 Jul 2022 | ر.س55.0b | ر.س13.5b | ر.س1.7b | 35.8x | 33.3x | 4.1x |
| Fri, 24 Jun 2022 | ر.س46.7b | ر.س13.4b | ر.س1.6b | 30.6x | 28.4x | 3.5x |
| Sun, 22 May 2022 | ر.س50.5b | ر.س13.3b | ر.س1.6b | 31.1x | 31x | 3.8x |
| Tue, 19 Apr 2022 | ر.س47.1b | ر.س12.4b | ر.س1.5b | 32.5x | 32x | 3.8x |
| Thu, 17 Mar 2022 | ر.س43.0b | ر.س12.6b | ر.س1.5b | 28x | 28.5x | 3.4x |
| Sat, 12 Feb 2022 | ر.س28.2b | ر.س8.5b | ر.س864.1m | 42.6x | 32.7x | 3.3x |
| Mon, 10 Jan 2022 | ر.س26.7b | ر.س8.5b | ر.س864.1m | n/a | 30.9x | 3.2x |
| Wed, 08 Dec 2021 | ر.س26.2b | ر.س8.5b | ر.س864.1m | 40.3x | 30.4x | 3.1x |
| Fri, 05 Nov 2021 | ر.س27.5b | ر.س8.5b | ر.س864.1m | 41.1x | 31.8x | 3.2x |
| Sun, 03 Oct 2021 | ر.س4.2b | ر.س940.4m | ر.س75.5m | 55.4x | 55.4x | 4.5x |
| Tue, 31 Aug 2021 | ر.س4.4b | ر.س940.4m | ر.س75.5m | 57.6x | 57.6x | 4.6x |
Price to Earnings Ratio
57.6x
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 40.7x which is higher than its 3-year average PE of 36.6x.
- The 3-year average PS ratio of 4.7x is lower than the industry's current PS ratio of 6.0x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 248% per year over the last three years.
- Revenues for these companies have grown 185% 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 | -0.37% | |
| Tech | 2.48% | |
| IT | 2.47% | |
| IT Consulting | 2.47% | |
| Internet Services and Infrastructure | 0% | |
| Data Processing Services | 0% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 36.7x.
- Analysts are expecting annual earnings growth of 16.1%, which is lower than the prior year's growth of 18.5% 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 36.7x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 16% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 16% 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.س1.02k | 3.6% +ر.س2.8b | 32.7% | PE53.3x | |
| 7202 Arabian Internet and Communication Services | ر.س297.00 | 1.0% +ر.س357.0m | -18.5% | PE26.1x | |
| 7204 Perfect Presentation for Commercial Services | ر.س15.44 | 3.2% +ر.س144.0m | 31.7% | PE29.6x | |
| 9557 Edarat Communication and Information Technology | ر.س516.60 | 0.3% +ر.س3.5m | 149.0% | PE74.9x |
