Saudi Arabian (Tadawul) Telecom Sector Analysis

Sector Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Tue, 29 Nov 2022	ر.س247.7b	ر.س95.8b	ر.س14.7b	20.7x	16.9x	2.6x
Thu, 27 Oct 2022	ر.س265.0b	ر.س94.5b	ر.س13.9b	21.9x	19x	2.8x
Sat, 24 Sep 2022	ر.س250.4b	ر.س94.3b	ر.س13.9b	22x	18.1x	2.7x
Mon, 22 Aug 2022	ر.س275.3b	ر.س94.0b	ر.س13.8b	22.5x	20x	2.9x
Wed, 20 Jul 2022	ر.س258.0b	ر.س92.5b	ر.س13.5b	23.4x	19.1x	2.8x
Fri, 17 Jun 2022	ر.س265.5b	ر.س92.4b	ر.س13.4b	23.2x	19.9x	2.9x
Sun, 15 May 2022	ر.س288.6b	ر.س92.1b	ر.س13.3b	26.2x	21.7x	3.1x
Tue, 12 Apr 2022	ر.س300.9b	ر.س90.3b	ر.س13.1b	29.7x	23x	3.3x
Thu, 10 Mar 2022	ر.س289.5b	ر.س90.0b	ر.س13.0b	29.8x	22.3x	3.2x
Sat, 05 Feb 2022	ر.س296.4b	ر.س88.7b	ر.س13.0b	29.6x	22.8x	3.3x
Mon, 03 Jan 2022	ر.س279.2b	ر.س88.7b	ر.س13.0b	27.4x	21.5x	3.1x
Wed, 01 Dec 2021	ر.س273.6b	ر.س88.7b	ر.س13.0b	24.6x	21.1x	3.1x
Fri, 29 Oct 2021	ر.س284.1b	ر.س87.7b	ر.س12.7b	32.1x	22.4x	3.2x
Sun, 26 Sep 2021	ر.س311.6b	ر.س86.6b	ر.س12.5b	32.3x	25x	3.6x
Tue, 24 Aug 2021	ر.س311.6b	ر.س86.6b	ر.س12.5b	31.9x	25x	3.6x
Wed, 30 Jun 2021	ر.س317.4b	ر.س86.6b	ر.س12.5b	35x	25.5x	3.7x
Sat, 03 Apr 2021	ر.س297.5b	ر.س85.3b	ر.س12.3b	24.4x	24.3x	3.5x
Tue, 05 Jan 2021	ر.س253.5b	ر.س83.5b	ر.س12.3b	25.6x	20.6x	3x
Fri, 09 Oct 2020	ر.س237.7b	ر.س81.7b	ر.س11.6b	25.8x	20.5x	2.9x
Thu, 02 Jul 2020	ر.س230.6b	ر.س81.3b	ر.س11.5b	20.7x	20.1x	2.8x
Sun, 05 Apr 2020	ر.س202.5b	ر.س79.9b	ر.س11.5b	18.5x	17.6x	2.5x
Wed, 08 Jan 2020	ر.س236.4b	ر.س79.1b	ر.س11.3b	22.2x	20.8x	3x

Current Industry PE

Investors are pessimistic on the Saudi Communication Services 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 16.9x which is lower than its 3-year average PE of 21.1x.

The 3-year average PS ratio of 3.1x is higher than the industry's current PS ratio of 2.6x.

Past Earnings Growth

The earnings for companies in the Communication Services industry have grown 5.2% per year over the last three years.
Revenues for these companies have grown 6.9% 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?


SA Market	-2.39%
Telecom	-0.16%
Media	0.83%
Telecom Services and Carriers	0.12%
Entertainment	0%
Interactive Media and Services	0%
Wireless Telecom	-2.11%

Industry PE

Investors are most optimistic about the Media industry even though it's trading below its 3-year average PE ratio of 36.3x.

It looks like they are confident that earnings will grow faster in the future than they have historically.

Investors are most pessimistic about the Telecom Services and Carriers industry, which is trading below its 3-year average of 19.5x.

Forecasted Growth

Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 9.3% over the next 5 years.
However this is lower than its past earnings growth rate of 73% per year.

In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 5.2% 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
4210 Saudi Research and Media Group	ر.س187.60	2.0% +ر.س288.0m	17.5%	PE23.7x
7020 Etihad Etisalat	ر.س36.05	0.8% +ر.س231.0m	14.8%	PE20.2x
4071 Arabian Contracting Services	ر.س110.80	1.3% +ر.س70.0m	25.5%	PE21x
7040 Etihad Atheeb Telecommunication	ر.س57.20	0.9% +ر.س4.5m	-5.4%	PS1x

Company

Last Price

Valuation

4210 Saudi Research and Media Group

ر.س187.60

2.0%
+ر.س288.0m

17.5%

PE23.7x

7020 Etihad Etisalat

ر.س36.05

0.8%
+ر.س231.0m

14.8%