Major Estimate Revision • Jun 02
Consensus EPS estimates increase by 40% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from ر.س0.62 to ر.س0.87. Revenue forecast unchanged at ر.س1.58b. Net income forecast to shrink 50% next year vs 22% growth forecast for Building industry in Saudi Arabia . Consensus price target up from ر.س26.30 to ر.س27.35. Share price was steady at ر.س27.72 over the past week. Reported Earnings • May 20
First quarter 2026 earnings released: EPS: ر.س0.22 (vs ر.س0.21 in 1Q 2025) First quarter 2026 results: EPS: ر.س0.22 (up from ر.س0.21 in 1Q 2025). Revenue: ر.س383.0m (flat on 1Q 2025). Net income: ر.س22.4m (up 6.1% from 1Q 2025). Profit margin: 5.9% (up from 5.5% in 1Q 2025). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Building industry in Asia. 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 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 25
Upcoming dividend of ر.س0.50 per share Eligible shareholders must have bought the stock before 01 April 2026. Payment date: 14 April 2026. Payout ratio is a comfortable 55% but the company is paying out more than the cash it is generating. Trailing yield: 3.5%. Lower than top quartile of Saudi dividend payers (6.0%). In line with average of industry peers (3.4%). New Risk • Mar 16
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 233% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Earnings are forecast to decline by an average of 47% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (dividend per share is over 5x cash flows per share). Large one-off items impacting financial results. Reported Earnings • Mar 09
Full year 2025 earnings released: EPS: ر.س1.81 (vs ر.س0.80 loss in FY 2024) Full year 2025 results: EPS: ر.س1.81 (up from ر.س0.80 loss in FY 2024). Revenue: ر.س1.49b (up 11% from FY 2024). Net income: ر.س180.7m (up ر.س252.5m from FY 2024). Profit margin: 12% (up from net loss in FY 2024). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 3% per year. New Risk • Nov 05
New major risk - Revenue and earnings growth Earnings have declined by 41% 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 Risks Interest payments are not well covered by earnings (2.6x net interest cover). Earnings have declined by 41% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: ر.س0.07 (vs ر.س0.07 in 3Q 2024) Third quarter 2025 results: EPS: ر.س0.07 (in line with 3Q 2024). Revenue: ر.س355.7m (up 3.2% from 3Q 2024). Net income: ر.س6.75m (up 12% from 3Q 2024). Profit margin: 1.9% (up from 1.8% in 3Q 2024). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. New Risk • Aug 20
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 3.3% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. New Risk • Aug 13
New major risk - Revenue and earnings growth Earnings have declined by 42% 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 Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings have declined by 42% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Upcoming Dividend • Aug 11
Upcoming dividend of ر.س0.50 per share Eligible shareholders must have bought the stock before 18 August 2025. Payment date: 02 September 2025. The company last paid an ordinary dividend in February 2015. The average dividend yield among industry peers is 3.1%. Reported Earnings • Jul 31
Second quarter 2025 earnings released: EPS: ر.س1.13 (vs ر.س0.11 loss in 2Q 2024) Second quarter 2025 results: EPS: ر.س1.13 (up from ر.س0.11 loss in 2Q 2024). Revenue: ر.س290.1m (up 5.1% from 2Q 2024). Net income: ر.س112.8m (up ر.س123.6m from 2Q 2024). Profit margin: 39% (up from net loss in 2Q 2024). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Building industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. New Risk • May 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (49% net debt to equity). Share price has been volatile over the past 3 months (6.9% average weekly change). Reported Earnings • May 08
First quarter 2025 earnings released: EPS: ر.س0.21 (vs ر.س0.16 in 1Q 2024) First quarter 2025 results: EPS: ر.س0.21 (up from ر.س0.16 in 1Q 2024). Revenue: ر.س384.6m (up 11% from 1Q 2024). Net income: ر.س21.1m (up 36% from 1Q 2024). Profit margin: 5.5% (up from 4.5% in 1Q 2024). Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Building industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Announcement • Apr 08
Saudi Ceramic Company Announces Board Changes, Effective 1 April 2025 Saudi Ceramic Company (Saudi Ceramics) appointed Yousuf Saleh Aba Al Khail as the board's Chairman for the next four years. The board members also named Abdulaziz Abdulkarim Al Khereiji as the Vice Chairman. The two officials assumed their roles for a new board term that commenced on 1 April 2025 and will end on 31 March 2029. New Risk • Apr 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (49% net debt to equity). Share price has been volatile over the past 3 months (5.5% average weekly change). Board Change • Mar 20
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Vice Chairman of the Board Abdulaziz Bin Abdulkareem Al Akhuraiji was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 06
Full year 2024 earnings released: ر.س0.80 loss per share (vs ر.س2.11 loss in FY 2023) Full year 2024 results: ر.س0.80 loss per share (improved from ر.س2.11 loss in FY 2023). Revenue: ر.س1.35b (up 2.6% from FY 2023). Net loss: ر.س79.3m (loss narrowed 62% from FY 2023). Revenue is forecast to grow 6.6% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Building industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Announcement • Mar 05
Saudi Ceramic Company, Annual General Meeting, Mar 26, 2025 Saudi Ceramic Company, Annual General Meeting, Mar 26, 2025, at 22:00 Arab Standard Time. Location: riyadh Saudi Arabia Price Target Changed • Mar 04
Price target decreased by 8.5% to ر.س25.45 Down from ر.س27.80, the current price target is an average from 2 analysts. New target price is 9.8% below last closing price of ر.س28.20. Stock is up 7.0% over the past year. The company posted a net loss per share of ر.س2.11 last year. New Risk • Jan 12
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Buy Or Sell Opportunity • Nov 05
Now 20% undervalued Over the last 90 days, the stock has risen 21% to ر.س32.15. The fair value is estimated to be ر.س40.36, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.0% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Nov 03
Third quarter 2024 earnings released: EPS: ر.س0.07 (vs ر.س1.69 loss in 3Q 2023) Third quarter 2024 results: EPS: ر.س0.07 (up from ر.س1.69 loss in 3Q 2023). Revenue: ر.س344.6m (up 11% from 3Q 2023). Net income: ر.س6.03m (up ر.س174.6m from 3Q 2023). Profit margin: 1.8% (up from net loss in 3Q 2023). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Building industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 87 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 08
Second quarter 2024 earnings released: ر.س0.10 loss per share (vs ر.س0.33 profit in 2Q 2023) Second quarter 2024 results: ر.س0.10 loss per share (down from ر.س0.33 profit in 2Q 2023). Revenue: ر.س276.2m (up 9.1% from 2Q 2023). Net loss: ر.س10.8m (down 133% from profit in 2Q 2023). Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Building industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Aug 04
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.4% to ر.س26.35. The fair value is estimated to be ر.س34.16, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.2% over the last 3 years. Meanwhile, the company became loss making. Price Target Changed • Jul 09
Price target increased by 11% to ر.س25.76 Up from ر.س23.31, the current price target is an average from 2 analysts. New target price is 8.8% below last closing price of ر.س28.25. Stock is up 1.5% over the past year. The company is forecast to post earnings per share of ر.س0.71 next year compared to a net loss per share of ر.س2.11 last year. Announcement • Jun 08
Saudi Ceramic Company, Annual General Meeting, Jun 26, 2024 Saudi Ceramic Company, Annual General Meeting, Jun 26, 2024, at 19:40 Arab Standard Time. Location: riyadh Saudi Arabia Reported Earnings • May 18
First quarter 2024 earnings released: EPS: ر.س0.19 (vs ر.س0.18 in 1Q 2023) First quarter 2024 results: EPS: ر.س0.19 (up from ر.س0.18 in 1Q 2023). Revenue: ر.س345.8m (down 6.3% from 1Q 2023). Net income: ر.س15.6m (up 5.8% from 1Q 2023). Profit margin: 4.5% (up from 4.0% in 1Q 2023). Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Building industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 03
Full year 2023 earnings released: ر.س2.63 loss per share (vs ر.س2.18 profit in FY 2022) Full year 2023 results: ر.س2.63 loss per share (down from ر.س2.18 profit in FY 2022). Revenue: ر.س1.31b (down 12% from FY 2022). Net loss: ر.س210.4m (down 221% from profit in FY 2022). Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Price Target Changed • Dec 12
Price target decreased by 9.4% to ر.س27.70 Down from ر.س30.57, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of ر.س27.10. Stock is down 8.3% over the past year. The company is forecast to post earnings per share of ر.س1.17 for next year compared to ر.س2.18 last year. Reported Earnings • Nov 23
Third quarter 2023 earnings released: ر.س2.11 loss per share (vs ر.س0.53 profit in 3Q 2022) Third quarter 2023 results: ر.س2.11 loss per share (down from ر.س0.53 profit in 3Q 2022). Revenue: ر.س311.6m (down 15% from 3Q 2022). Net loss: ر.س168.6m (down 494% from profit in 3Q 2022). Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 10% per year. Reported Earnings • Jul 27
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: ر.س253.0m (down 25% from 2Q 2022). Net income: ر.س33.3m (down 12% from 2Q 2022). Profit margin: 13% (up from 11% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • May 12
Consensus EPS estimates fall by 41% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ر.س1.52b to ر.س1.48b. EPS estimate also fell from ر.س2.20 per share to ر.س1.30 per share. Net income forecast to shrink 4.4% next year vs 23% growth forecast for Building industry in Saudi Arabia . Consensus price target down from ر.س37.63 to ر.س33.63. Share price was steady at ر.س30.90 over the past week. Reported Earnings • May 04
First quarter 2023 earnings released: EPS: ر.س0.18 (vs ر.س0.64 in 1Q 2022) First quarter 2023 results: EPS: ر.س0.18 (down from ر.س0.64 in 1Q 2022). Revenue: ر.س368.9m (down 6.9% from 1Q 2022). Net income: ر.س14.7m (down 71% from 1Q 2022). Profit margin: 4.0% (down from 13% in 1Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 18
Price target decreased by 9.1% to ر.س37.63 Down from ر.س41.39, the current price target is an average from 3 analysts. New target price is 19% above last closing price of ر.س31.65. Stock is down 41% over the past year. The company is forecast to post earnings per share of ر.س2.20 for next year compared to ر.س2.18 last year. Upcoming Dividend • Mar 08
Upcoming dividend of ر.س0.50 per share at 3.3% yield Eligible shareholders must have bought the stock before 15 March 2023. Payment date: 28 March 2023. Payout ratio is a comfortable 56% but the company is paying out more than the cash it is generating. Trailing yield: 3.3%. Lower than top quartile of Saudi dividend payers (4.6%). Lower than average of industry peers (4.1%). Price Target Changed • Dec 23
Price target decreased to ر.س43.64 Down from ر.س48.45, the current price target is an average from 4 analysts. New target price is 45% above last closing price of ر.س30.10. Stock is down 43% over the past year. The company is forecast to post earnings per share of ر.س2.00 for next year compared to ر.س2.93 last year. Price Target Changed • Nov 16
Price target decreased to ر.س48.45 Down from ر.س53.50, the current price target is an average from 3 analysts. New target price is 37% above last closing price of ر.س35.30. Stock is down 33% over the past year. The company is forecast to post earnings per share of ر.س2.23 for next year compared to ر.س2.93 last year. Reported Earnings • Oct 25
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: ر.س366.6m (up 1.8% from 3Q 2021). Net income: ر.س42.8m (down 18% from 3Q 2021). Profit margin: 12% (down from 14% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 31
Price target decreased to ر.س49.00 Down from ر.س56.90, the current price target is an average from 2 analysts. New target price is 12% above last closing price of ر.س43.70. Stock is down 34% over the past year. The company is forecast to post earnings per share of ر.س2.03 for next year compared to ر.س2.93 last year. Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment improved over the past week After last week's 15% share price gain to ر.س43.30, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 13x in the Building industry in Asia. Total returns to shareholders of 161% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س75.29 per share. Reported Earnings • Aug 03
Second quarter 2022 earnings released: EPS: ر.س0.48 (vs ر.س0.80 in 2Q 2021) Second quarter 2022 results: EPS: ر.س0.48 (down from ر.س0.80 in 2Q 2021). Revenue: ر.س338.8m (down 4.8% from 2Q 2021). Net income: ر.س38.0m (down 40% from 2Q 2021). Profit margin: 11% (down from 18% in 2Q 2021). The decrease in margin was primarily driven by lower revenue. Over the next year, revenue is forecast to grow 6.5%, compared to a 17% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 27
Upcoming dividend of ر.س0.50 per share Eligible shareholders must have bought the stock before 02 August 2022. Payment date: 14 August 2022. Payout ratio is a comfortable 56% but the company is paying out more than the cash it is generating. Trailing yield: 2.8%. Lower than top quartile of Saudi dividend payers (4.4%). Higher than average of industry peers (2.5%). Announcement • Jul 14
Saudi Ceramics Company Announces Approval to Distribute Cash Dividends for the First Half of the Year 2022, Payable on August 14, 2022 Saudi Ceramic Company approved the distribution of cash dividends to the Company's shareholders for the first half of the year 2022. The Total amount distributed is SRA 39,919,340, Number of Shares Eligible for Dividends is 79,838,679 Shares. Dividend is SRA 0.50 per share, Percentage of Dividend to the Share Par Value (%) 5 % Eligibility date The eligibility is for the shareholders who own shares at the closing of the market on the first of August 2022 and who are registered in the Company's shareholders register at the Depository Center at the end of the second trading day following the due date. Distribution Date The distribution date will be on August 14, 2022. Reported Earnings • May 01
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: ر.س0.64 (down from ر.س0.89 in 1Q 2021). Revenue: ر.س396.2m (down 10.0% from 1Q 2021). Net income: ر.س51.3m (down 28% from 1Q 2021). Profit margin: 13% (down from 16% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) missed analyst estimates by 20%. Over the next year, revenue is forecast to grow 8.9%, compared to a 14% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has only increased by 51% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to ر.س65.50 Up from ر.س56.90, the current price target is an average from 2 analysts. New target price is 28% above last closing price of ر.س51.00. Stock is up 2.1% over the past year. The company is forecast to post earnings per share of ر.س2.84 for next year compared to ر.س2.93 last year. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. Independent Vice Chairman of the Board Abdulaziz Bin Abdulkareem Al Akhuraiji was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Apr 21
Price target increased to ر.س65.50 Up from ر.س56.90, the current price target is an average from 2 analysts. New target price is 25% above last closing price of ر.س52.60. Stock is up 16% over the past year. The company is forecast to post earnings per share of ر.س2.84 for next year compared to ر.س2.93 last year. Announcement • Apr 05
Saudi Ceramic Company Announces Executive Changes Saudi Ceramic Company announced the Board of Directors- decision in its meeting, regarding the appointment of the Chairman of the Board of Directors and the Vice-chairman, the formation of committees, and the appointment of the Company-s representative to the Capital Market Authority and the Saudi Stock Exchange (Tadawul), as follows: Appointment of Mr. Mr. Yousuf bin Saleh Aba Al-Khail as Chairman of the Board of Directors. Formation of the Executive Committee from the following members: 1. Mr. Yousuf bin Saleh Aba Al-Khail.(Chairman of the Committee); 2. Mr. Sami bin Ibrahim Al Issa.; 3. Mr. Mutaib bin Mohammed Al-Shathri.; and 4. Mr. Majed Abdullah Al Issa. Formation of the Remuneration and Nominations Committee from the following members: 1. Mr. AbdulAziz Abdulkarim Al-Akhuraiji (Chairman of the Committee); 2. Mr. Asim Saad Al-Juraid; and 3. Mr. Muhammed Abdulmohsin Al-Qurainees. Price Target Changed • Feb 28
Price target decreased to ر.س56.90 Down from ر.س63.68, the current price target is an average from 2 analysts. New target price is 16% above last closing price of ر.س49.15. Stock is up 27% over the past year. The company is forecast to post earnings per share of ر.س4.80 for next year compared to ر.س2.93 last year. Announcement • Feb 26
Saudi Ceramic Company, Annual General Meeting, Mar 16, 2022 Saudi Ceramic Company, Annual General Meeting, Mar 16, 2022, at 18:30 Arabian Standard Time. Location: The Company's headquarters at King Fahd Road Riydah Saudi Arabia Reported Earnings • Feb 25
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: ر.س2.93 (up from ر.س0.98 in FY 2020). Revenue: ر.س1.53b (up 1.2% from FY 2020). Net income: ر.س233.8m (up 201% from FY 2020). Profit margin: 15% (up from 5.1% in FY 2020). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 20%. Over the next year, revenue is forecast to grow 13%, compared to a 13% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 118% per year but the company’s share price has only increased by 49% per year, which means it is significantly lagging earnings growth. Announcement • Feb 17
Saudi Ceramic Company Announces the Distribution of Cash Dividends to Shareholders for the Second Half of the Year 2021, Payable on March 03, 2022 The Board of Directors of the Saudi Ceramic Company decided, in their meeting held on February 16, 2022, to approve the distribution of cash dividends to the company's shareholders for the second half of the year 2021. The Total amount distributed SRA 59,873,481. Dividend per share SRA 0.75. The distribution date will be on March 03, 2022. Buying Opportunity • Jan 27
Now 20% undervalued Over the last 90 days, the stock is up 4.4%. The fair value is estimated to be ر.س71.04, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% per annum over the last 3 years. The company has become profitable over the last 3 years. Reported Earnings • Oct 27
Third quarter 2021 earnings released The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: ر.س360.1m (down 3.5% from 3Q 2020). Net income: ر.س52.4m (up 61% from 3Q 2020). Profit margin: 14% (up from 8.7% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 128% per year but the company’s share price has only increased by 55% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 05
Second quarter 2021 earnings released: EPS ر.س0.80 (vs ر.س0.083 in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: ر.س356.1m (down 6.8% from 2Q 2020). Net income: ر.س63.3m (up ر.س56.8m from 2Q 2020). Profit margin: 18% (up from 1.7% in 2Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has only increased by 70% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 11
Consensus EPS estimates increase to ر.س3.01 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from ر.س1.67b to ر.س1.69b. EPS estimate increased from ر.س1.94 to ر.س3.01 per share. Net income forecast to grow 83% next year vs 24% growth forecast for Building industry in Saudi Arabia. Consensus price target up from ر.س49.50 to ر.س55.83. Share price was steady at ر.س59.00 over the past week. Price Target Changed • May 26
Price target increased to ر.س49.50 Up from ر.س43.75, the current price target is an average from 3 analysts. New target price is 11% below last closing price of ر.س55.50. Stock is up 166% over the past year. Reported Earnings • May 02
First quarter 2021 earnings released The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ر.س440.3m (up 12% from 1Q 2020). Net income: ر.س70.7m (up ر.س60.1m from 1Q 2020). Profit margin: 16% (up from 2.7% in 1Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 46% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improved over the past week After last week's 22% share price gain to ر.س51.80, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 16x in the Building industry in Asia. Total returns to shareholders of 204% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س38.28 per share. Major Estimate Revision • Apr 14
Consensus EPS estimates fall to ر.س1.94 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from ر.س1.67b to ر.س1.64b. EPS estimate also fell from ر.س2.25 to ر.س1.94. Net income forecast to grow 99% next year vs 28% growth forecast for Building industry in Saudi Arabia. Consensus price target up from ر.س43.75 to ر.س46.33. Share price was steady at ر.س41.10 over the past week. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment deteriorated over the past week After last week's 26% share price decline to ر.س41.18, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Building industry in Asia. Total returns to shareholders of 107% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س41.27 per share. Reported Earnings • Feb 25
Full year 2020 earnings released: EPS ر.س1.41 (vs ر.س0.12 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ر.س1.52b (up 23% from FY 2019). Net income: ر.س77.7m (up ر.س70.6m from FY 2019). Profit margin: 5.1% (up from 0.6% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 25
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.8%. Earnings per share (EPS) exceeded analyst estimates by 8.4%. Over the next year, revenue is forecast to grow 8.0%, compared to a 15% growth forecast for the Building industry in Saudi Arabia. Is New 90 Day High Low • Feb 15
New 90-day high: ر.س53.60 The company is up 16% from its price of ر.س46.40 on 17 November 2020. The Saudi market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Building industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ر.س51.84 per share. Announcement • Feb 04
Saudi Ceramic Co. Announces Changes in Audit Committee Member The Saudi Ceramic Company announced that the Board of Directors of the company has accepted the resignation of the member of the Audit Committee, Mr. Sami bin Ibrahim Al-Issa (a non-executive board member) and the appointment of Mr. Abdulaziz bin Abdul Karim Al-Khuraiji (an independent board member) as Audit Committee member. He holds a Bachelor of Science in Management and is currently the Executive Director of Al-Khuraiji Investment Company and a member of the Board of Directors of the Saudi Ceramic Company and Chubb Cooperative Insurance Company.