2040

Saudi CeramicSASE:2040 Stock Report

Market Cap

ر.س5.1b

7D

-1.1%

1Y

103.6%

Updated

22 Sep, 2021

Data

Company Financials +
2040 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends4/6

2040 Overview

Saudi Ceramic Company manufactures and sells ceramic products, water heaters, and other products in Saudi Arabia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Saudi Ceramic
Historical stock prices
Current Share Priceر.س64.20
52 Week Highر.س27.75
52 Week Lowر.س67.80
Beta0.75
1 Month Change-1.53%
3 Month Change10.31%
1 Year Change103.57%
3 Year Change396.52%
5 Year Change275.03%
Change since IPO172.47%

Recent News & Updates

Aug 04
I Ran A Stock Scan For Earnings Growth And Saudi Ceramic (TADAWUL:2040) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Saudi Ceramic (TADAWUL:2040) Passed With Ease

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

Jul 08
Saudi Ceramic (TADAWUL:2040) Has Some Difficulty Using Its Capital Effectively

Saudi Ceramic (TADAWUL:2040) Has Some Difficulty Using Its Capital Effectively

When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...

Jun 21
Estimating The Intrinsic Value Of Saudi Ceramic Company (TADAWUL:2040)

Estimating The Intrinsic Value Of Saudi Ceramic Company (TADAWUL:2040)

In this article we are going to estimate the intrinsic value of Saudi Ceramic Company ( TADAWUL:2040 ) by taking the...

Shareholder Returns

2040SA BuildingSA Market
7D-1.1%-6.1%-0.2%
1Y103.6%32.0%5.2%

Return vs Industry: 2040 exceeded the SA Building industry which returned 32% over the past year.

Return vs Market: 2040 exceeded the SA Market which returned 5.2% over the past year.

Price Volatility

Is 2040's price volatile compared to industry and market?
2040 volatility
2040 Beta0.75
Industry Beta0.93
Market Beta1

Stable Share Price: 2040 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2040's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1977n/aMajid bin Abdullah Al Essahttps://www.saudiceramics.com

Saudi Ceramic Company manufactures and sells ceramic products, water heaters, and other products in Saudi Arabia and internationally. The company offers floor tiles; sanitary ware, such as wash basins, water closets, seat covers, flushing mechanisms, and wash basin mixers; bathroom accessories, including soap holders, towel rods, tissue roll dispensers, shower heads, shattafs, robe hooks, and mirrors; and other products comprising bathtubs, shower trays, bath mixers, and electrical products. It also provides electric, smart, and solar water heaters, as well as spare parts; ceramic road markers; and plastics and acrylics; boilers, special paints for ceramic products, red pottery bricks and derivatives, plastic and ceramic pipes; and drinking water coolers, bathtubs, plastic and ceramic showers, plastic road signs, and various construction and housing project solutions.

Saudi Ceramic Fundamentals Summary

How do Saudi Ceramic's earnings and revenue compare to its market cap?
2040 fundamental statistics
Market Capر.س5.12b
Earnings (TTM)ر.س194.53m
Revenue (TTM)ر.س1.54b

26.3x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2040 income statement (TTM)
Revenueر.س1.54b
Cost of Revenueر.س1.05b
Gross Profitر.س484.70m
Expensesر.س290.17m
Earningsر.س194.53m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.45
Gross Margin31.53%
Net Profit Margin12.66%
Debt/Equity Ratio36.6%

How did 2040 perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Saudi Ceramic undervalued compared to its fair value and its price relative to the market?

3.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2040 (SAR64.2) is trading below our estimate of fair value (SAR66.55)

Significantly Below Fair Value: 2040 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2040 is poor value based on its PE Ratio (26.3x) compared to the Asian Building industry average (14.6x).

PE vs Market: 2040 is good value based on its PE Ratio (26.3x) compared to the SA market (31x).


Price to Earnings Growth Ratio

PEG Ratio: 2040 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 2040 is overvalued based on its PB Ratio (3.1x) compared to the XA Building industry average (1.3x).


Future Growth

How is Saudi Ceramic forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2040's forecast earnings growth (23.7% per year) is above the savings rate (8.8%).

Earnings vs Market: 2040's earnings (23.7% per year) are forecast to grow faster than the SA market (5.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2040's revenue (10.7% per year) is forecast to grow faster than the SA market (3.1% per year).

High Growth Revenue: 2040's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2040's Return on Equity is forecast to be low in 3 years time (16.5%).


Past Performance

How has Saudi Ceramic performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2040 has high quality earnings.

Growing Profit Margin: 2040's current net profit margins (12.7%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 2040's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: 2040's earnings growth over the past year (197%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: 2040 earnings growth over the past year (197%) exceeded the Building industry 31.5%.


Return on Equity

High ROE: 2040's Return on Equity (11.3%) is considered low.


Financial Health

How is Saudi Ceramic's financial position?


Financial Position Analysis

Short Term Liabilities: 2040's short term assets (SAR1.1B) exceed its short term liabilities (SAR637.4M).

Long Term Liabilities: 2040's short term assets (SAR1.1B) exceed its long term liabilities (SAR482.5M).


Debt to Equity History and Analysis

Debt Level: 2040's debt to equity ratio (36.6%) is considered satisfactory.

Reducing Debt: 2040's debt to equity ratio has reduced from 47.8% to 36.6% over the past 5 years.

Debt Coverage: 2040's debt is well covered by operating cash flow (60%).

Interest Coverage: 2040's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Dividend

What is Saudi Ceramic current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2040's dividend (2.34%) is higher than the bottom 25% of dividend payers in the SA market (1.49%).

High Dividend: 2040's dividend (2.34%) is low compared to the top 25% of dividend payers in the SA market (4.05%).


Stability and Growth of Payments

Stable Dividend: 2040's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2040's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.6%), 2040's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2040's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

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

ر.س289k

CEO Compensation


CEO

Majid bin Abdullah Al Essa

no data

Tenure

ر.س289,000

Compensation

Mr. Majid bin Abdullah Al Essa serves as Chief Executive Officer and Director of Saudi Ceramic Company. He served as a Non-Executive Director at Saudi Ceramic Company. He is Chief Executive Officer of Bati...


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 been diluted in the past year, with total shares outstanding growing by 8.8%.


Top Shareholders

Company Information

Saudi Ceramic Company's employee growth, exchange listings and data sources


Key Information

  • Name: Saudi Ceramic Company
  • Ticker: 2040
  • Exchange: SASE
  • Founded: 1977
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: ر.س5.120b
  • Shares outstanding: 79.75m
  • Website: https://www.saudiceramics.com

Number of Employees


Location

  • Saudi Ceramic Company
  • PO Box 3893
  • Riyadh
  • 11481
  • Saudi Arabia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 15:13
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
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.