SASE:1120

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Al Rajhi Banking and Investment

Market Cap

ر.س276.5b

Last Updated

2021/06/17 15:42 UTC

Data Sources

Company Financials +

Executive Summary

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, engages in banking and investment activities in the Kingdom of Saudi Arabia and internationally. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Al Rajhi Banking and Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1120 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1120's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.7%

1120

1.9%

SA Banks

-0.07%

SA Market


1 Year Return

87.8%

1120

52.4%

SA Banks

15.5%

SA Market

Return vs Industry: 1120 exceeded the SA Banks industry which returned 52.4% over the past year.

Return vs Market: 1120 exceeded the SA Market which returned 15.5% over the past year.


Shareholder returns

1120IndustryMarket
7 Day4.7%1.9%-0.07%
30 Day7.4%3.6%0.7%
90 Day20.5%15.2%4.1%
1 Year89.8%87.8%54.4%52.4%19.9%15.5%
3 Year120.3%98.8%52.9%38.2%41.8%28.3%
5 Year253.5%190.9%163.2%118.2%94.7%64.9%

Long-Term Price Volatility Vs. Market

How volatile is Al Rajhi Banking and Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Al Rajhi Banking and Investment undervalued compared to its fair value and its price relative to the market?

23.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1120 (SAR110.6) is trading above our estimate of fair value (SAR48.91)

Significantly Below Fair Value: 1120 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1120 is poor value based on its PE Ratio (23.9x) compared to the SA Banks industry average (17.9x).

PE vs Market: 1120 is good value based on its PE Ratio (23.9x) compared to the SA market (32.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1120 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 1120 is overvalued based on its PB Ratio (4.7x) compared to the SA Banks industry average (1.5x).


Future Growth

How is Al Rajhi Banking and Investment forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1120's forecast earnings growth (10.1% per year) is above the savings rate (8.8%).

Earnings vs Market: 1120's earnings (10.1% per year) are forecast to grow faster than the SA market (8.2% per year).

High Growth Earnings: 1120's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1120's revenue (10.2% per year) is forecast to grow faster than the SA market (3.9% per year).

High Growth Revenue: 1120's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1120's Return on Equity is forecast to be high in 3 years time (22.1%)


Past Performance

How has Al Rajhi Banking and Investment performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1120 has a high level of non-cash earnings.

Growing Profit Margin: 1120's current net profit margins (58.8%) are higher than last year (56.2%).


Past Earnings Growth Analysis

Earnings Trend: 1120's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: 1120's earnings growth over the past year (15.8%) exceeds its 5-year average (3.8% per year).

Earnings vs Industry: 1120 earnings growth over the past year (15.8%) exceeded the Banks industry -9.6%.


Return on Equity

High ROE: 1120's Return on Equity (19.5%) is considered low.


Financial Health

How is Al Rajhi Banking and Investment's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 1120's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: 1120 has a sufficient allowance for bad loans (318%).

Low Risk Liabilities: 95% of 1120's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1120 has an appropriate level of Loans to Assets ratio (70%).

Low Risk Deposits: 1120's Loans to Deposits ratio (83%) is appropriate.

Level of Bad Loans: 1120 has an appropriate level of bad loans (0.7%).


Dividend

What is Al Rajhi Banking and Investment current dividend yield, its reliability and sustainability?

0.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1120's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the SA market (1.51%).

High Dividend: 1120's dividend (0.9%) is low compared to the top 25% of dividend payers in the SA market (4.53%).


Stability and Growth of Payments

Stable Dividend: 1120 is not paying a notable dividend for the SA market, therefore no need to check if payments are stable.

Growing Dividend: 1120 is not paying a notable dividend for the SA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1120 is not paying a notable dividend for the SA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1120's dividend in 3 years as they are not forecast to pay a notable one for the SA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average board tenure


CEO

Waleed Abdullah Al-Mogbel (44 yo)

1.42yrs

Tenure

Mr. Waleed Abdullah Ali Al-Mogbel serves as Chief Executive Officer of Al Rajhi Banking and Investment Corporation since January1, 2020 and served as its Deputy Chief Executive Officer until Jnauary 1, 202...


Board Members

Experienced Board: 1120's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Al Rajhi Banking and Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Al Rajhi Banking and Investment Corporation
  • Ticker: 1120
  • Exchange: SASE
  • Founded: 1957
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ر.س276.500b
  • Shares outstanding: 2.50b
  • Website: https://www.alrajhibank.com.sa

Number of Employees


Location

  • Al Rajhi Banking and Investment Corporation
  • 8467 King Fahd Road
  • Unit No 1
  • Riyadh
  • 12263-2743
  • Saudi Arabia

Listings


Biography

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, engages in banking and investment activities in the Kingdom of Saudi Arabia and internationally. The company operates through fo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 15:42
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.