Reported Earnings • May 10
First quarter 2026 earnings released: EPS: ر.س0.22 (vs ر.س0.37 in 1Q 2025) First quarter 2026 results: EPS: ر.س0.22 (down from ر.س0.37 in 1Q 2025). Revenue: ر.س119.9m (down 20% from 1Q 2025). Net income: ر.س30.2m (down 41% from 1Q 2025). Profit margin: 25% (down from 35% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 27
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: ر.س0.92 (down from ر.س1.03 in FY 2024). Revenue: ر.س519.6m (flat on FY 2024). Net income: ر.س128.9m (down 11% from FY 2024). Profit margin: 25% (down from 28% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.0%. Revenue is forecast to grow 7.4% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Mar 26
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 2.8% to ر.س13.00. The fair value is estimated to be ر.س10.79, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 9.0% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Price Target Changed • Feb 06
Price target decreased by 17% to ر.س16.80 Down from ر.س20.33, the current price target is an average from 2 analysts. New target price is 27% above last closing price of ر.س13.23. Stock is down 36% over the past year. The company is forecast to post earnings per share of ر.س0.89 for next year compared to ر.س1.03 last year. Reported Earnings • Nov 04
Third quarter 2025 earnings released: EPS: ر.س0.06 (vs ر.س0.24 in 3Q 2024) Third quarter 2025 results: EPS: ر.س0.06 (down from ر.س0.24 in 3Q 2024). Revenue: ر.س96.5m (down 26% from 3Q 2024). Net income: ر.س8.75m (down 74% from 3Q 2024). Profit margin: 9.1% (down from 26% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. New Risk • Oct 30
New major risk - Revenue and earnings growth Earnings have declined by 14% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 14% per year over the past 5 years. Minor Risk Dividend is not well covered by earnings (98% payout ratio). Reported Earnings • Jul 31
Second quarter 2025 earnings released: EPS: ر.س0.26 (vs ر.س0.20 in 2Q 2024) Second quarter 2025 results: EPS: ر.س0.26 (up from ر.س0.20 in 2Q 2024). Revenue: ر.س139.5m (up 25% from 2Q 2024). Net income: ر.س36.4m (up 31% from 2Q 2024). Profit margin: 26% (up from 25% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Declared Dividend • Jul 30
Dividend of ر.س0.65 announced Shareholders will receive a dividend of ر.س0.65. Ex-date: 5th August 2025 Payment date: 25th August 2025 Dividend yield will be 3.9%, which is lower than the industry average of 4.6%. Sustainability & Growth Dividend is not adequately covered by earnings (98% earnings payout ratio). However, it is well covered by cash flows (48% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 8.8% to bring the payout ratio under control. EPS is expected to grow by 54% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Buy Or Sell Opportunity • Jun 03
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to ر.س17.72. The fair value is estimated to be ر.س22.16, however this is not to be taken as a buy recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to grow by 8.0% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Aankondiging • May 15
City Cement Company, Annual General Meeting, Jun 16, 2025 City Cement Company, Annual General Meeting, Jun 16, 2025, at 18:30 Arab Standard Time. Location: riyadh Saudi Arabia Reported Earnings • May 08
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: ر.س0.37 (up from ر.س0.30 in 1Q 2024). Revenue: ر.س149.3m (up 25% from 1Q 2024). Net income: ر.س51.5m (up 24% from 1Q 2024). Profit margin: 35% (in line with 1Q 2024). Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Major Estimate Revision • Mar 19
Consensus revenue estimates increase by 12% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from ر.س516.5m to ر.س579.0m. EPS estimate increased from ر.س1.03 to ر.س1.14 per share. Net income forecast to grow 11% next year vs 9.0% growth forecast for Basic Materials industry in Saudi Arabia. Consensus price target up from ر.س20.33 to ر.س20.78. Share price rose 6.6% to ر.س20.28 over the past week. Reported Earnings • Mar 14
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: ر.س1.03 (up from ر.س0.59 in FY 2023). Revenue: ر.س520.8m (up 46% from FY 2023). Net income: ر.س144.1m (up 76% from FY 2023). Profit margin: 28% (up from 23% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.5%. Earnings per share (EPS) also surpassed analyst estimates by 5.1%. Revenue is forecast to grow 3.9% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 13
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: ر.س0.24 (up from ر.س0.032 in 3Q 2023). Revenue: ر.س130.1m (up 84% from 3Q 2023). Net income: ر.س33.7m (up ر.س29.2m from 3Q 2023). Profit margin: 26% (up from 6.3% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) also missed analyst estimates by 7.7%. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 9% per year. Price Target Changed • Oct 18
Price target decreased by 7.8% to ر.س20.78 Down from ر.س22.53, the current price target is an average from 4 analysts. New target price is 14% above last closing price of ر.س18.18. Stock is up 6.6% over the past year. The company is forecast to post earnings per share of ر.س1.01 for next year compared to ر.س0.59 last year. Major Estimate Revision • Oct 08
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ر.س0.897 to ر.س1.01. Revenue forecast unchanged at ر.س476.0m. Net income forecast to grow 51% next year vs 18% growth forecast for Basic Materials industry in Saudi Arabia. Consensus price target of ر.س22.28 unchanged from last update. Share price was steady at ر.س17.34 over the past week. Reported Earnings • Aug 03
Second quarter 2024 earnings released: EPS: ر.س0.20 (vs ر.س0.17 in 2Q 2023) Second quarter 2024 results: EPS: ر.س0.20 (up from ر.س0.17 in 2Q 2023). Revenue: ر.س111.3m (up 43% from 2Q 2023). Net income: ر.س27.8m (up 14% from 2Q 2023). Profit margin: 25% (down from 31% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 17% per year. Buy Or Sell Opportunity • Jul 31
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to ر.س17.96. The fair value is estimated to be ر.س22.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 16% over the last 3 years. Earnings per share has declined by 21%. Revenue is forecast to grow by 29% in 2 years. Earnings are forecast to grow by 65% in the next 2 years. Major Estimate Revision • Jul 11
Consensus EPS estimates increase by 16% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ر.س0.935 to ر.س1.08. Revenue forecast unchanged at ر.س439.7m. Net income forecast to grow 58% next year vs 22% growth forecast for Basic Materials industry in Saudi Arabia. Consensus price target of ر.س22.42 unchanged from last update. Share price was steady at ر.س19.46 over the past week. New Risk • Jun 09
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 117% Cash payout ratio: 94% Dividend yield: 4.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Aankondiging • Jun 08
City Cement Company, Annual General Meeting, Jun 30, 2024 City Cement Company, Annual General Meeting, Jun 30, 2024, at 19:15 Arab Standard Time. Location: riyadh Saudi Arabia Price Target Changed • Apr 18
Price target decreased by 8.7% to ر.س22.18 Down from ر.س24.30, the current price target is an average from 4 analysts. New target price is 7.6% above last closing price of ر.س20.60. Stock is down 5.2% over the past year. The company is forecast to post earnings per share of ر.س0.59 for next year compared to ر.س0.82 last year. Major Estimate Revision • Apr 16
Consensus EPS estimates fall by 42% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ر.س0.91 to ر.س0.53. Revenue forecast unchanged from ر.س353.0m at last update. Net income forecast to shrink 27% next year vs 18% decline forecast for Basic Materials industry in Saudi Arabia. Consensus price target of ر.س23.23 unchanged from last update. Share price was steady at ر.س20.38 over the past week. Price Target Changed • Jan 16
Price target decreased by 11% to ر.س21.60 Down from ر.س24.30, the current price target is an average from 2 analysts. New target price is 22% above last closing price of ر.س17.70. Stock is down 15% over the past year. The company is forecast to post earnings per share of ر.س0.59 for next year compared to ر.س0.82 last year. Reported Earnings • Nov 08
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: ر.س0.03 (down from ر.س0.18 in 3Q 2022). Revenue: ر.س70.7m (down 29% from 3Q 2022). Net income: ر.س4.42m (down 83% from 3Q 2022). Profit margin: 6.3% (down from 25% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 79%. Revenue is forecast to grow 45% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Buying Opportunity • Aug 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 1.4%. The fair value is estimated to be ر.س27.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 14% over the last 3 years. Earnings per share has declined by 28%. Revenue is forecast to grow by 84% in 2 years. Earnings is forecast to grow by 112% in the next 2 years. Reported Earnings • Aug 13
Second quarter 2023 earnings released: EPS: ر.س0.17 (vs ر.س0.18 in 2Q 2022) Second quarter 2023 results: EPS: ر.س0.17 (down from ر.س0.18 in 2Q 2022). Revenue: ر.س77.8m (down 13% from 2Q 2022). Net income: ر.س24.3m (down 2.2% from 2Q 2022). Profit margin: 31% (up from 28% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jun 06
Consensus revenue estimates increase by 11% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from ر.س432.3m to ر.س479.3m. EPS estimate increased from ر.س0.99 to ر.س1.03 per share. Net income forecast to grow 38% next year vs 37% growth forecast for Basic Materials industry in Saudi Arabia. Consensus price target up from ر.س23.60 to ر.س25.08. Share price was steady at ر.س24.30 over the past week. Major Estimate Revision • May 20
Consensus EPS estimates fall by 24% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from ر.س1.31 to ر.س0.99. Revenue forecast unchanged from ر.س432.3m at last update. Net income forecast to grow 19% next year vs 26% growth forecast for Basic Materials industry in Saudi Arabia. Consensus price target of ر.س23.60 unchanged from last update. Share price was steady at ر.س22.10 over the past week. Price Target Changed • May 19
Price target decreased by 7.7% to ر.س23.60 Down from ر.س25.58, the current price target is an average from 3 analysts. New target price is 6.8% above last closing price of ر.س22.10. Stock is down 11% over the past year. The company posted earnings per share of ر.س0.82 last year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. Deputy Chairman & Managing Director Badr bin Al Abdullatif was the last director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Aankondiging • Nov 04
City Cement Company to Report Q3, 2022 Results on Nov 03, 2022 City Cement Company announced that they will report Q3, 2022 results at 1:00 PM, Arabian Standard Time on Nov 03, 2022 Aankondiging • Sep 09
City Cement Co. Announces the Distribution of Cash Dividend for First Half of 2022 City Cement Company announced decision of the Board of Directors to distribute cash dividends to shareholders for the first half of 2022 and from retained earnings. The total amount distributed of SAR 56,000,000 and dividend per share of SAR 0.40. Reported Earnings • Aug 14
Second quarter 2022 earnings released: EPS: ر.س0.18 (vs ر.س0.35 in 2Q 2021) Second quarter 2022 results: EPS: ر.س0.18 (down from ر.س0.35 in 2Q 2021). Revenue: ر.س89.2m (down 26% from 2Q 2021). Net income: ر.س24.8m (down 50% from 2Q 2021). Profit margin: 28% (down from 42% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 22%, compared to a 4.8% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Price Target Changed • Jul 13
Price target increased to ر.س29.13 Up from ر.س26.93, the current price target is an average from 2 analysts. New target price is 36% above last closing price of ر.س21.40. Stock is down 31% over the past year. The company is forecast to post earnings per share of ر.س0.74 for next year compared to ر.س1.14 last year. Aankondiging • Jun 22
City Cement Appoints Abdulaziz Bin Mishal Bin Abdulaziz Al Saud as the New Chairman of the Board City Cement Company has named Abdulaziz bin Mishal bin Abdulaziz Al Saud as the new Chairman of the board for the coming three years. In addition, Badr bin Omar Al Abdullatif was appointed as the company's new Vice Chairman and Managing Director, according to a bourse filing. The two officials assumed their roles for a new board term that started on 20 June 2022. Aankondiging • May 27
City Cement Company, Annual General Meeting, Jun 15, 2022 City Cement Company, Annual General Meeting, Jun 15, 2022, at 17:30 Coordinated Universal Time. Agenda: To consider voting on the company's auditor's report for the fiscal year ended on December 31, 2021; to consider voting on the company's financial statements for the fiscal year ended on December 31, 2021; to consider voting the report of the board of directors for the fiscal year ended on December 31, 2021; to consider voting to discharge the members of the Board of Directors from liability for the fiscal year ended on December 31, 2021; to consider voting on the appointment of external auditors for the company from among the candidates based on the Audit Committee's recommendation to examine, review, and audit the (second, third and fourth) quarter, the annual financial statements of the fiscal year 2022G, and the first quarter of the fiscal year 2023G together with the determination of their remuneration; and to consider other matters. Reported Earnings • May 22
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: ر.س0.12 (down from ر.س0.47 in 1Q 2021). Revenue: ر.س108.1m (down 37% from 1Q 2021). Net income: ر.س17.2m (down 74% from 1Q 2021). Profit margin: 16% (down from 39% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) missed analyst estimates by 14%. Over the next year, revenue is forecast to grow 15%, compared to a 5.2% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. Deputy Chairman & Managing Director Badr bin Al Abdullatif was the last director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improved over the past week After last week's 16% share price gain to ر.س26.65, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Basic Materials industry in Saudi Arabia. Total returns to shareholders of 103% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س32.05 per share. Reported Earnings • Mar 16
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: ر.س1.15 (down from ر.س1.22 in FY 2020). Revenue: ر.س496.7m (down 13% from FY 2020). Net income: ر.س160.3m (down 27% from FY 2020). Profit margin: 32% (down from 39% in FY 2020). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 14%. Over the next year, revenue is forecast to grow 7.3%, compared to a 4.7% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 15% per year. Upcoming Dividend • Mar 13
Upcoming dividend of ر.س0.50 per share Eligible shareholders must have bought the stock before 20 March 2022. Payment date: 30 April 2022. Payout ratio is a comfortable 33% and the cash payout ratio is 99%. Trailing yield: 2.2%. Lower than top quartile of Saudi dividend payers (4.4%). Lower than average of industry peers (5.7%). Reported Earnings • Nov 04
Third quarter 2021 earnings released: EPS ر.س0.27 (vs ر.س0.36 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ر.س111.6m (down 21% from 3Q 2020). Net income: ر.س38.0m (down 26% from 3Q 2020). Profit margin: 34% (down from 36% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 23% per year. Upcoming Dividend • Aug 15
Upcoming dividend of ر.س0.75 per share Eligible shareholders must have bought the stock before 22 August 2021. Payment date: 02 September 2021. Trailing yield: 1.6%. Lower than top quartile of Saudi dividend payers (4.3%). Lower than average of industry peers (5.2%). Reported Earnings • Aug 04
Second quarter 2021 earnings released: EPS ر.س0.36 (vs ر.س0.26 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ر.س119.8m (up 10% from 2Q 2020). Net income: ر.س49.7m (up 37% from 2Q 2020). Profit margin: 42% (up from 33% in 2Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year whereas the company’s share price has increased by 31% per year. Reported Earnings • May 08
First quarter 2021 earnings released: EPS ر.س0.47 (vs ر.س0.50 in 1Q 2020) The company reported a poor first quarter result with weaker earnings and profit margins, although revenues were flat. First quarter 2021 results: Revenue: ر.س170.6m (flat on 1Q 2020). Net income: ر.س66.0m (down 6.3% from 1Q 2020). Profit margin: 39% (down from 41% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Mar 05
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 21%. Over the next year, revenue is forecast to grow 3.4%, compared to a 3.9% growth forecast for the Basic Materials industry in Saudi Arabia. Reported Earnings • Mar 05
Full year 2020 earnings released: EPS ر.س1.58 (vs ر.س1.29 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ر.س572.7m (up 7.8% from FY 2019). Net income: ر.س220.5m (up 22% from FY 2019). Profit margin: 39% (up from 34% in FY 2019). Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 09
Third quarter 2020 earnings released: EPS ر.س0.27 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2020 results: Revenue: ر.س140.6m (up 9.9% from 3Q 2019). Net income: ر.س51.1m (up 1.2% from 3Q 2019). Profit margin: 36% (down from 40% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Nov 09
Revenue and earnings miss expectations Revenue missed analyst estimates by 0.5%. Earnings per share (EPS) also missed analyst estimates by 31%. Over the next year, revenue is expected to shrink by 8.7% compared to a 7.1% decline forecast for the Basic Materials industry in Saudi Arabia. Is New 90 Day High Low • Nov 01
New 90-day low: ر.س19.98 The company is down 13% from its price of ر.س23.00 on 28 July 2020. The Saudi market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 4.0% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: ر.س19.98 The company is down 13% from its price of ر.س23.00 on 28 July 2020. The Saudi market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 8.0% over the same period. Valuation Update With 7 Day Price Move • Oct 29
Market pulls back on stock over the past week After last week's 21% share price decline to ر.س21.46, the stock is trading at a trailing P/E ratio of 14x, down from the previous P/E ratio of 17.8x. This compares to an average P/E of 18x in the Basic Materials industry in Saudi Arabia. Total returns to shareholders over the past three years are 68%. Is New 90 Day High Low • Oct 16
New 90-day high: ر.س21.38 The company is up 26% from its price of ر.س17.02 on 16 July 2020. The Saudi market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Basic Materials industry, which is up 22% over the same period. Is New 90 Day High Low • Sep 29
New 90-day high: ر.س20.14 The company is up 26% from its price of ر.س16.02 on 01 July 2020. The Saudi market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Basic Materials industry, which is up 24% over the same period.