SASE:2222

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Saudi Arabian Oil Company operates as an integrated oil and gas company in the Kingdom of Saudi Arabia and internationally. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2222 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: 2222's weekly volatility (1%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

2222

0.3%

SA Oil and Gas

0.7%

SA Market


1 Year Return

1.2%

2222

1.1%

SA Oil and Gas

2.2%

SA Market

Return vs Industry: 2222 matched the SA Oil and Gas industry which returned 1.2% over the past year.

Return vs Market: 2222 underperformed the SA Market which returned 2.3% over the past year.


Shareholder returns

2222IndustryMarket
7 Day0.3%0.3%0.7%
30 Day-1.7%-1.7%-0.6%
90 Day-2.2%-2.2%-0.5%
1 Year4.6%1.2%4.6%1.1%5.7%2.2%
3 Yearn/a-15.1%-26.3%28.2%15.8%
5 Yearn/a36.0%10.8%93.8%61.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2222 (SAR35) is trading above our estimate of fair value (SAR20.26)

Significantly Below Fair Value: 2222 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2222 is poor value based on its PE Ratio (33.5x) compared to the XA Oil and Gas industry average (13.1x).

PE vs Market: 2222 is poor value based on its PE Ratio (33.5x) compared to the SA market (26.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2222 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 2222 is overvalued based on its PB Ratio (7x) compared to the SA Oil and Gas industry average (3.6x).


Next Steps

Future Growth

How is Saudi Arabian Oil forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2222's forecast earnings growth (15.3% per year) is above the savings rate (8.9%).

Earnings vs Market: 2222's earnings (15.3% per year) are forecast to grow slower than the SA market (18.4% per year).

High Growth Earnings: 2222's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2222's revenue (11.4% per year) is forecast to grow faster than the SA market (10.5% per year).

High Growth Revenue: 2222's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2222's Return on Equity is forecast to be high in 3 years time (34.5%)


Next Steps

Past Performance

How has Saudi Arabian Oil performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2222 has high quality earnings.

Growing Profit Margin: 2222's current net profit margins (22.4%) are lower than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: 2222's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: 2222's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2222 had negative earnings growth (-42.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-12.8%).


Return on Equity

High ROE: 2222's Return on Equity (18.5%) is considered low.


Next Steps

Financial Health

How is Saudi Arabian Oil's financial position?


Financial Position Analysis

Short Term Liabilities: 2222's short term assets (SAR386.1B) exceed its short term liabilities (SAR228.4B).

Long Term Liabilities: 2222's short term assets (SAR386.1B) do not cover its long term liabilities (SAR538.1B).


Debt to Equity History and Analysis

Debt Level: 2222's debt to equity ratio (40.9%) is considered high.

Reducing Debt: Insufficient data to determine if 2222's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2222's debt is well covered by operating cash flow (68.8%).

Interest Coverage: 2222's interest payments on its debt are well covered by EBIT (95.7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2222's dividend (4.02%) is higher than the bottom 25% of dividend payers in the SA market (2%).

High Dividend: 2222's dividend (4.02%) is low compared to the top 25% of dividend payers in the SA market (4.79%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2222's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2222's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.7%), 2222's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2222's dividends in 3 years are forecast to be covered by earnings (80.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Amin Nasser (61 yo)

5.33yrs

Tenure

Mr. Amin H. Nasser has been the Chief Executive Officer and President of Saudi Arabian Oil Company (Saudi Aramco), the world’s leading integrated energy and chemicals enterprise, and the largest provider o...


Leadership Team

NamePositionTenureCompensationOwnership
Amin Nasser
CEO, President & Director5.33yrsno datano data
Khalid Al-Dabbagh
Senior Vice President of Finance2.33yrsno data0%
SAR 0
Nabeel Al-Jama
Acting Head of Operations & Business Services1yrno datano data
Ahmad Al Khowaiter
Chief Technology Officerno datano datano data
Fergus MacLeod
Head of Investor Relationsno datano datano data
Nabeel Al Mansour
General Counsel and Corporate Secretary4.67yrsno data0%
SAR 0
Abdulaziz Al-Gudaimi
Senior Vice President of Corporate Development0.33yrno data0.000010%
SAR 699.6k
Huda Al-Ghoson
Executive Director of Human Resourceno datano datano data
Ahmad Al-Sa'adi
Senior Vice President of Technical Services5.83yrsno data0.000010%
SAR 699.6k
Nasir Al-Naimi
Acting Head of Upstream Unit0.42yrno datano data
Muhammad Al-Saggaf
Acting President of KFUPM1yrno data0.000020%
SAR 1.4m
Khalid Al-Buainain
Chief Executive Officer of Trading Unit4.5yrsno datano data

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 2222's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amin Nasser
CEO, President & Director5.33yrsno datano data
Mark Moody-Stuart
Independent Non-Executive Director13.42yrsر.س1.14mno data
Andrew Liveris
Independent Non-Executive Director2.5yrsر.س1.14mno data
Lynn Elsenhans
Independent Non-Executive Director2.75yrsر.س1.15mno data
Peter Cella
Independent Non-Executive Director2.75yrsر.س1.15mno data
Ibrahim Bin Al-Assaf
Deputy Chairmanno dataر.س1.14m0.000010%
SAR 699.6k
Mark Weinberger
Independent Board Member0.75yrno datano data
Yasir bin Othman Al-Rumayyan
Chairman1.33yrsر.س1.14m0.0015%
SAR 104.9m
Mohamed Ben Abdulla Ben Al-Jadaan
Non-executive Director2.75yrsر.س1.14mno data
Mohammed Al-Tuwaijri
Non-executive Director2.75yrsر.س1.14mno data
Nabeel Al-Amudi
Independent Non-Executive Director1.33yrsر.س671.75kno data

2.8yrs

Average Tenure

61yo

Average Age

Experienced Board: 2222's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

Saudi Arabian Oil Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saudi Arabian Oil Company
  • Ticker: 2222
  • Exchange: SASE
  • Founded: 1933
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: ر.س6.996t
  • Shares outstanding: 199.88b
  • Website: https://www.saudiaramco.com

Number of Employees


Location

  • Saudi Arabian Oil Company
  • PO Box 5000
  • Dhahran
  • 31311
  • Saudi Arabia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2222SASE (Saudi Arabian Stock Exchange)YesOrdinary SharesSASARDec 2019

Biography

Saudi Arabian Oil Company operates as an integrated oil and gas company in the Kingdom of Saudi Arabia and internationally. The company operates through two segments, Upstream and Downstream. The Upstream ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 14:01
End of Day Share Price2021/01/14 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.