SASE:2050

Stock Analysis Report

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Market Cap

ر.س22.9b

Last Updated

2021/07/30 14:01 UTC

Data Sources

Company Financials +

Executive Summary

Savola Group Company, together with its subsidiaries, manufactures and distributes food products in the Middle East, North Africa, Turkey, and internationally. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Savola Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2050 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2050's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

4.6%

2050

0.7%

SA Food

0.3%

SA Market


1 Year Return

-7.7%

2050

14.3%

SA Food

14.8%

SA Market

Return vs Industry: 2050 underperformed the SA Food industry which returned 14.3% over the past year.

Return vs Market: 2050 underperformed the SA Market which returned 14.8% over the past year.


Shareholder returns

2050IndustryMarket
7 Day4.6%0.7%0.3%
30 Day-0.6%-5.5%-1.1%
90 Day7.4%6.8%0.02%
1 Year-6.0%-7.7%16.7%14.3%19.2%14.8%
3 Year30.0%26.7%32.9%26.0%42.2%29.2%
5 Year36.1%28.1%52.2%38.9%104.7%74.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Savola Group undervalued compared to its fair value and its price relative to the market?

25.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2050 (SAR42.9) is trading above our estimate of fair value (SAR24.13)

Significantly Below Fair Value: 2050 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2050 is good value based on its PE Ratio (25.7x) compared to the SA Food industry average (38.5x).

PE vs Market: 2050 is good value based on its PE Ratio (25.7x) compared to the SA market (33.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2050 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 2050 is good value based on its PB Ratio (2.7x) compared to the SA Food industry average (3.7x).


Future Growth

How is Savola Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2050's forecast earnings growth (16.8% per year) is above the savings rate (8.8%).

Earnings vs Market: 2050's earnings (16.8% per year) are forecast to grow faster than the SA market (6.8% per year).

High Growth Earnings: 2050's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2050's revenue (3.4% per year) is forecast to grow faster than the SA market (3.3% per year).

High Growth Revenue: 2050's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2050's Return on Equity is forecast to be low in 3 years time (12%).


Past Performance

How has Savola Group performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2050 has high quality earnings.

Growing Profit Margin: 2050's current net profit margins (4.1%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: 2050's earnings have declined by 1.9% per year over the past 5 years.

Accelerating Growth: 2050's earnings growth over the past year (38.9%) exceeds its 5-year average (-1.9% per year).

Earnings vs Industry: 2050 earnings growth over the past year (38.9%) underperformed the Food industry 38.9%.


Return on Equity

High ROE: 2050's Return on Equity (10.7%) is considered low.


Financial Health

How is Savola Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2050's short term assets (SAR8.4B) do not cover its short term liabilities (SAR10.0B).

Long Term Liabilities: 2050's short term assets (SAR8.4B) do not cover its long term liabilities (SAR9.7B).


Debt to Equity History and Analysis

Debt Level: 2050's debt to equity ratio (80%) is considered high.

Reducing Debt: 2050's debt to equity ratio has reduced from 85.6% to 80% over the past 5 years.

Debt Coverage: 2050's debt is not well covered by operating cash flow (10.4%).

Interest Coverage: 2050's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is Savola Group current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2050's dividend (1.75%) is higher than the bottom 25% of dividend payers in the SA market (1.46%).

High Dividend: 2050's dividend (1.75%) is low compared to the top 25% of dividend payers in the SA market (4.32%).


Stability and Growth of Payments

Stable Dividend: 2050's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2050's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.9%), 2050's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2050's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Waleed Fatani

0.50

Tenure

Mr. Waleed Khalid Fatani serves as Non-Executive Director at Almarai Company since January 1, 2021. He serves as Group Chief Executive Officer at Savola Group Company since January 1, 2021. He served as th...


Leadership Team

Experienced Management: 2050's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: 2050's board of directors are not considered experienced ( 2 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

Savola Group Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Savola Group Company
  • Ticker: 2050
  • Exchange: SASE
  • Founded: 1979
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ر.س22.893b
  • Shares outstanding: 533.64m
  • Website: https://www.savola.com

Location

  • Savola Group Company
  • Savola Tower
  • Unit 15, The Headquarters Business Park
  • Jeddah
  • 23511-7333
  • Saudi Arabia

Listings


Biography

Savola Group Company, together with its subsidiaries, manufactures and distributes food products in the Middle East, North Africa, Turkey, and internationally. It offers edible oils, vegetable ghee, sugar,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 14:01
End of Day Share Price2021/07/29 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.