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1120

Al Rajhi Banking and Investment SASE:1120 Stock Report

Last Price

ر.س84.20

Market Cap

ر.س336.8b

7D

-2.0%

1Y

22.0%

Updated

28 Jun, 2022

Data

Company Financials +
1120 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends4/6

1120 Stock Overview

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, provides banking and investment services in the Kingdom of Saudi Arabia and internationally.

Al Rajhi Banking and Investment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Al Rajhi Banking and Investment
Historical stock prices
Current Share Priceر.س84.20
52 Week Highر.س117.40
52 Week Lowر.س66.00
Beta0.56
1 Month Change-12.38%
3 Month Change-15.70%
1 Year Change22.03%
3 Year Change93.01%
5 Year Change214.51%
Change since IPO1,885.01%

Recent News & Updates

May 24
Here's Why I Think Al Rajhi Banking and Investment (TADAWUL:1120) Might Deserve Your Attention Today

Here's Why I Think Al Rajhi Banking and Investment (TADAWUL:1120) Might Deserve Your Attention Today

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Jan 31
If You Like EPS Growth Then Check Out Al Rajhi Banking and Investment (TADAWUL:1120) Before It's Too Late

If You Like EPS Growth Then Check Out Al Rajhi Banking and Investment (TADAWUL:1120) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

1120SA BanksSA Market
7D-2.0%2.1%1.6%
1Y22.0%23.9%12.5%

Return vs Industry: 1120 underperformed the SA Banks industry which returned 23.9% over the past year.

Return vs Market: 1120 exceeded the SA Market which returned 12.5% over the past year.

Price Volatility

Is 1120's price volatile compared to industry and market?
1120 volatility
1120 Average Weekly Movement5.2%
Banks Industry Average Movement6.1%
Market Average Movement4.9%
10% most volatile stocks in SA Market7.2%
10% least volatile stocks in SA Market3.1%

Stable Share Price: 1120 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1120's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195715,078Waleed Bin Abdullah Al-Mogbelhttps://www.alrajhibank.com.sa

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, provides banking and investment services in the Kingdom of Saudi Arabia and internationally. The company operates through four segments: Retail, Corporate, Treasury, and Investment Services and Brokerage. It offers current, future, affluent, private, ladies, business, and escrow accounts; personal, auto, home, car, real estate, fleet, payroll, POS merchant, contract, invoice, and working capital finance services; credit and debit cards; and personal accident, medical, staff guarantee, marine cargo, engineering, machine breakdown, property, vehicle, and professional responsibility insurance products.

Al Rajhi Banking and Investment Fundamentals Summary

How do Al Rajhi Banking and Investment's earnings and revenue compare to its market cap?
1120 fundamental statistics
Market Capر.س336.80b
Earnings (TTM)ر.س15.54b
Revenue (TTM)ر.س24.38b

21.7x

P/E Ratio

4.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1120 income statement (TTM)
Revenueر.س24.38b
Cost of Revenueر.س0
Gross Profitر.س24.38b
Other Expensesر.س8.83b
Earningsر.س15.54b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.89
Gross Margin100.00%
Net Profit Margin63.76%
Debt/Equity Ratio0.0%

How did 1120 perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

39%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1120 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1120?

Other financial metrics that can be useful for relative valuation.

1120 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does 1120's PE Ratio compare to its peers?

1120 PE Ratio vs Peers
The above table shows the PE ratio for 1120 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.4x
1180 Saudi National Bank
21.4x22.3%ر.س284.5b
1010 Riyad Bank
15.7x13.0%ر.س97.5b
1060 Saudi British Bank
24.2x23.3%ر.س78.1b
1150 Alinma Bank
24.3x21.5%ر.س67.8b
1120 Al Rajhi Banking and Investment
21.7x14.2%ر.س336.8b

Price-To-Earnings vs Peers: 1120 is expensive based on its Price-To-Earnings Ratio (21.7x) compared to the peer average (21.4x).


Price to Earnings Ratio vs Industry

How does 1120's PE Ratio compare vs other companies in the Asian Banks Industry?

Price-To-Earnings vs Industry: 1120 is expensive based on its Price-To-Earnings Ratio (21.7x) compared to the SA Banks industry average (21x)


Price to Earnings Ratio vs Fair Ratio

What is 1120's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1120 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1120's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1120 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1120 (SAR84.2) is trading above our estimate of fair value (SAR63.28)

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


Price to Earnings Growth Ratio

PEG Ratio: 1120 is poor value based on its PEG Ratio (1.5x)


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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?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1120's forecast earnings growth (14.2% per year) is above the savings rate (9%).

Earnings vs Market: 1120's earnings (14.2% per year) are forecast to grow faster than the SA market (-1.2% per year).

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

Revenue vs Market: 1120's revenue (16.5% per year) is forecast to grow faster than the SA market (-2.9% per year).

High Growth Revenue: 1120's revenue (16.5% 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 (25.2%)


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.8%

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 (63.8%) are higher than last year (58.8%).


Past Earnings Growth Analysis

Earnings Trend: 1120's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: 1120's earnings growth over the past year (34.6%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: 1120 earnings growth over the past year (34.6%) exceeded the Banks industry 24.5%.


Return on Equity

High ROE: 1120's Return on Equity (19.8%) is considered low.


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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 1120's Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: 1120 has a sufficient allowance for bad loans (308%).

Low Risk Liabilities: 94% 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 (74%).

Low Risk Deposits: 1120's Loans to Deposits ratio (89%) is appropriate.

Level of Bad Loans: 1120 has an appropriate level of bad loans (0.6%).


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1120's dividend (2.08%) is higher than the bottom 25% of dividend payers in the SA market (1.91%).

High Dividend: 1120's dividend (2.08%) is low compared to the top 25% of dividend payers in the SA market (4.42%).


Stability and Growth of Payments

Stable Dividend: 1120's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1120's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.6%), 1120's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1120's dividends in 3 years are forecast to be covered by earnings (51.5% payout ratio).


Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure


CEO

Waleed Bin Abdullah Al-Mogbel (45 yo)

2.42yrs

Tenure

ر.س180,000

Compensation

Mr. Waleed Bin 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,...


Leadership Team

Experienced Management: 1120's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1120's board of directors are considered experienced (7.6 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 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
  • Implied Market Cap: ر.س336.800b
  • Shares outstanding: 4.00b
  • Website: https://www.alrajhibank.com.sa

Number of Employees


Location

  • Al Rajhi Banking and Investment Corporation
  • Al Rajhi Bank
  • 8467 King Fahd Road - Al Muruj District
  • Riyadh
  • 12263-2743
  • Saudi Arabia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.