Saudi Arabian (Tadawul) Telecom Sector Analysis

Sector Valuation and Performance

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

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?

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?