SASE:2040

Stock Analysis Report

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Market Cap

ر.س4.8b

Last Updated

2021/06/17 15:44 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Saudi Ceramic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2040 is more volatile than 75% of SA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2040's weekly volatility (5%) has been stable over the past year, but is still higher than 75% of SA stocks.


Market Performance


7 Day Return

1.7%

2040

-0.2%

SA Building

-0.07%

SA Market


1 Year Return

131.2%

2040

48.6%

SA Building

15.5%

SA Market

Return vs Industry: 2040 exceeded the SA Building industry which returned 48.6% over the past year.

Return vs Market: 2040 exceeded the SA Market which returned 15.5% over the past year.


Shareholder returns

2040IndustryMarket
7 Day1.7%-0.2%-0.07%
30 Day8.9%1.7%0.7%
90 Day46.3%-0.04%4.1%
1 Year131.2%131.2%50.9%48.6%19.9%15.5%
3 Year292.5%292.5%60.5%50.7%41.8%28.3%
5 Year163.0%154.0%98.6%81.2%94.7%64.9%

Long-Term Price Volatility Vs. Market

How volatile is Saudi Ceramic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

34.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2040 (SAR60) is trading above our estimate of fair value (SAR49.1)

Significantly Below Fair Value: 2040 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2040 is poor value based on its PE Ratio (34.5x) compared to the Asian Building industry average (17.4x).

PE vs Market: 2040 is poor value based on its PE Ratio (34.5x) compared to the SA market (32.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2040 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 2040 is overvalued based on its PB Ratio (3.1x) compared to the XA Building industry average (1.2x).


Future Growth

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

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2040's forecast earnings growth (25.5% per year) is above the savings rate (8.8%).

Earnings vs Market: 2040's earnings (25.5% per year) are forecast to grow faster than the SA market (8.2% per year).

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

Revenue vs Market: 2040's revenue (5.9% per year) is forecast to grow faster than the SA market (3.9% per year).

High Growth Revenue: 2040's revenue (5.9% 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 (14.3%).


Past Performance

How has Saudi Ceramic performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2040 has high quality earnings.

Growing Profit Margin: 2040's current net profit margins (8.8%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: 2040's earnings have declined by 8.3% per year over the past 5 years.

Accelerating Growth: 2040's earnings growth over the past year (221.7%) exceeds its 5-year average (-8.3% per year).

Earnings vs Industry: 2040 earnings growth over the past year (221.7%) exceeded the Building industry 16.2%.


Return on Equity

High ROE: 2040's Return on Equity (8.2%) 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 (SAR637.8M).

Long Term Liabilities: 2040's short term assets (SAR1.1B) exceed its long term liabilities (SAR588.6M).


Debt to Equity History and Analysis

Debt Level: 2040's debt to equity ratio (44.8%) is considered high.

Reducing Debt: 2040's debt to equity ratio has reduced from 45.9% to 44.8% over the past 5 years.

Debt Coverage: 2040's debt is well covered by operating cash flow (71.6%).

Interest Coverage: 2040's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

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

2.89%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2040's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2040's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2040's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2040's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2040 is not paying a notable dividend for the SA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2040'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?

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 company bio, 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.س4.785b
  • Shares outstanding: 79.75m
  • Website: https://www.saudiceramics.com

Number of Employees


Location

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

Listings


Biography

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, wat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 15:44
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.