SASE:2222

Stock Analysis Report

Executive Summary

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

Rewards

Revenue is forecast to grow 6.84% per year

Risk Analysis

No risks detected for 2222 from our risk checks.


Snowflake Analysis

Excellent balance sheet with limited growth.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

2222

1.9%

SA Oil and Gas

1.7%

SA Market


1 Year Return

n/a

2222

-38.2%

SA Oil and Gas

-30.7%

SA Market

Return vs Industry: Insufficient data to determine how 2222 performed against the SA Oil and Gas industry.

Return vs Market: Insufficient data to determine how 2222 performed against the SA Market.


Shareholder returns

2222IndustryMarket
7 Day3.5%1.9%1.7%
30 Day-10.3%-10.4%-11.6%
90 Day-14.9%-15.6%-17.8%
1 Yearn/a-35.4%-38.2%-28.3%-30.7%
3 Yearn/a-27.8%-36.4%-3.5%-12.5%
5 Yearn/a-31.2%-42.5%-10.1%-23.8%

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?

18.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2222 (SAR29.9) is trading above our estimate of fair value (SAR21.69)

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 (18.1x) compared to the Oil and Gas industry average (7.3x).

PE vs Market: 2222 is poor value based on its PE Ratio (18.1x) compared to the SA market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: 2222 is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: 2222 is overvalued based on its PB Ratio (5.8x) compared to the SA Oil and Gas industry average (1.4x).


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?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2222's forecast earnings growth (5.2% per year) is below the savings rate (8.5%).

Earnings vs Market: 2222's earnings (5.2% per year) are forecast to grow slower than the SA market (6.9% per year).

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

Revenue vs Market: 2222's revenue (6.8% per year) is forecast to grow faster than the SA market (6.5% per year).

High Growth Revenue: 2222's revenue (6.8% 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 (33.2%)


Next Steps

Past Performance

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

-20.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 2222 has high quality earnings.

Growing Profit Margin: 2222's current net profit margins (26.7%) are lower than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 2222's year-on-year earnings growth rate was positive 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 (-20.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (-0.6%).


Return on Equity

High ROE: 2222's Return on Equity (31.6%) is considered high.


Next Steps

Financial Health

How is Saudi Arabian Oil's financial position?


Financial Position Analysis

Short Term Liabilities: 2222's short term assets (SAR408.2B) exceed its short term liabilities (SAR215.6B).

Long Term Liabilities: 2222's short term assets (SAR408.2B) exceed its long term liabilities (SAR232.3B).


Debt to Equity History and Analysis

Debt Level: 2222's debt to equity ratio (12.9%) is considered satisfactory.

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 (309.3%).

Interest Coverage: 2222 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2222 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2222's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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

0.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2222's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the SA market (3.13%).

High Dividend: 2222's dividend (0.23%) is low compared to the top 25% of dividend payers in the SA market (7.02%).


Stability and Growth of Payments

Stable Dividend: 2222 is not paying a notable dividend for the SA market, therefore no need to check if payments are stable.

Growing Dividend: 2222 is not paying a notable dividend for the SA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2222 is not paying a notable dividend for the SA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2222'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?

3.8yrs

Average management tenure


CEO

Amin Nasser (60yo)

4.5s

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 & Director4.5yrsno datano data
Khalid Al-Dabbagh
Senior Vice President of Finance1.5yrsno datano data
Nabeel Al-Jama
Acting Head of Operations & Business Services0.17yrno 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 Secretary3.83yrsno datano data
Huda Al-Ghoson
Executive Director of Human Resourceno datano datano data
Ahmad Al-Sa'adi
Senior Vice President of Technical Services5yrsno datano data
Mohammed Al-Qahtani
Senior Vice President of Upstream11.42yrsno datano data
Abdulaziz Gudaimi
Senior Vice President of Downstream3.17yrsno datano data

3.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 2222's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amin Nasser
CEO, President & Director4.5yrsno datano data
Mark Moody-Stuart
Independent Non-Executive Director12.58yrsno datano data
Andrew Liveris
Independent Non-Executive Director1.67yrsno datano data
Lynn Elsenhans
Independent Non-Executive Director1.92yrsno datano data
Peter Cella
Independent Non-Executive Director1.92yrsno datano data
Ibrahim Bin Al-Assaf
Deputy Chairmanno datano datano data
Yasir bin Othman Al-Rumayyan
Chairman0.50yrno datano data
Mohamed Ben Abdulla Ben Al-Jadaan
Non-executive Director1.92yrsno datano data
Mohammed Al-Tuwaijri
Non-executive Director1.92yrsno datano data
Nabeel Al-Amudi
Independent Non-Executive Director0.50yrno datano data

1.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 2222's board of directors are not considered experienced ( 1.9 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: 2222 only recently listed within the past 12 months, with total shares outstanding growing by -0% 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.س5.976t
  • 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 segment explores, develops, produces, and sells crude oil, condensate, natural gas, and natural gas liquids (NGLs). As of December 31, 2019, its reserves included 258.6 billion barrels of oil equivalent, including 201.9 billion barrels of crude oil and condensate; 25.7 billion barrels of NGLs; and 190.6 trillion standard cubic feet of natural gas, as well as 510 reservoirs within 138 fields distributed throughout the Kingdom and its territorial waters. The Downstream segment produces various chemicals, including ethylene, ethylene glycol, ethylene oxide, methanol, methyl tertiary butyl ether, polyethylene and engineering plastics and their derivatives, and other products; and base oils, as well as in the refining and retail operations. It also supplies oil products; and trades in refined petroleum and liquid chemical products, and polymers. The company also develops, manufactures, and markets high-performance rubber; and provides crude oil storage, financial, and marine management and transportation services. Saudi Arabian Oil Company was founded in 1933 and is headquartered in Dhahran, the Kingdom of Saudi Arabia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 17:23
End of Day Share Price2020/03/26 00:00
Earnings2019/12/31
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.