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Saudi Arabian (Tadawul) Telecom Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies6
  • 7D-2.1%
  • 3M-13.7%
  • 1Y5.2%
  • YTD6.8%

Over the last 7 days, the Telecom industry has dropped 2.1%, driven by a decline by Saudi Telecom of 1.4%. This takes the industry's 12 month performance to a gain of 5.2%.

Sector Valuation and Performance

Has the Saudi Arabian Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Mon, 29 Nov 2021ر.س275.9bر.س88.0bر.س12.8b26.4x
Wed, 27 Oct 2021ر.س288.6bر.س87.7bر.س12.7b32.6x
Fri, 24 Sep 2021ر.س311.6bر.س86.6bر.س12.5b32.3x
Sun, 22 Aug 2021ر.س314.0bر.س86.6bر.س12.5b32.2x
Fri, 09 Jul 2021ر.س317.4bر.س86.6bر.س12.5b35x
Thu, 01 Apr 2021ر.س297.5bر.س85.3bر.س12.3b24.4x
Sun, 03 Jan 2021ر.س253.5bر.س83.5bر.س12.3b25.6x
Wed, 07 Oct 2020ر.س237.7bر.س81.7bر.س11.6b25.8x
Tue, 30 Jun 2020ر.س230.6bر.س81.3bر.س11.5b20.7x
Fri, 03 Apr 2020ر.س202.5bر.س79.9bر.س11.5b18.5x
Mon, 06 Jan 2020ر.س236.4bر.س79.1bر.س11.3b22.2x
Thu, 10 Oct 2019ر.س250.1bر.س78.6bر.س12.6b33.2x
Wed, 03 Jul 2019ر.س241.9bر.س77.1bر.س12.3b47x
Sat, 06 Apr 2019ر.س245.3bر.س75.9bر.س11.6b40.9x
Tue, 08 Jan 2019ر.س208.4bر.س74.0bر.س11.0b47.7x
PE Ratio

58.1x

Total Market Cap: ر.س190.8bTotal Earnings: ر.س9.8bTotal Revenue: ر.س72.4b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 31.9x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Communication Services industry have grown 9.5% per year over the last three years, and revenues for these companies have grown 6.7% 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 Telecom sector?

Media1.29%
Telecom Services and Carriers-2.12%
Wireless Telecom-3.14%

Industry PE: Investors are most optimistic about the Wireless Telecom industry even though it's trading below its 3-year average PE ratio of 89.3x. However analysts are expecting annual earnings growth of 20%, which is lower than the prior year's growth of 48% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Telecom Services and Carriers industry, which is trading close to its 3-year average of 18.6x.

Forecasted Growth: Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 20% over the next 5 years. However this is lower than its past earnings growth rate of 48% per year. Meanwhile, the Telecom Services and Carriers industry is expected to see its earnings grow by 5.6% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
4210 Saudi Research and Media Group4.0%+ر.س496.0m107.6%PE28.3x
7020 Etihad Etisalat0.5%+ر.س115.5m4.9%PE24.1x
4070 Tihama Advertising and Public Relations2.6%+ر.س15.8m-40.7%PS7.6x
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