Saudi Steel Pipes (SASE:1320) - Share price, News & Analysis

1320 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	3/6
Financial Health	2/6
Dividends	0/6

1320 Stock Overview

Saudi Steel Pipes Company manufactures and sells steel pipes in Saudi Arabia and internationally.

Rewards

Became profitable this year

Risk Analysis

No risks detected for 1320 from our risk checks.

Saudi Steel Pipes Competitors

Zamil Industrial Investment

SASE:2240

ر.س1.2b

National Metal Manufacturing and Casting

SASE:2220

ر.س771.7m

East Pipes Integrated Company for Industry

SASE:1321

ر.س1.5b

Group Five Pipe Saudi

SASE:9523

ر.س784.0m

Price History & Performance

Summary of all time highs, changes and price drops for Saudi Steel Pipes
Historical stock prices
Current Share Price	ر.س22.64
52 Week High	ر.س32.95
52 Week Low	ر.س18.50
Beta	1.2
1 Month Change	14.34%
3 Month Change	-5.03%
1 Year Change	-27.90%
3 Year Change	7.71%
5 Year Change	32.94%
Change since IPO	-32.01%

Recent News & Updates

Jun 16

We Like These Underlying Return On Capital Trends At Saudi Steel Pipes (TADAWUL:1320)

There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want...

Shareholder Returns

	1320	SA Metals and Mining	SA Market
7D	2.5%	6.9%	-0.7%
1Y	-27.9%	60.5%	16.9%

Return vs Industry: 1320 underperformed the SA Metals and Mining industry which returned 60.5% over the past year.

Return vs Market: 1320 underperformed the SA Market which returned 16.9% over the past year.

Price Volatility

Is 1320's price volatile compared to industry and market?
1320 volatility
1320 Average Weekly Movement	4.3%
Metals and Mining Industry Average Movement	5.0%
Market Average Movement	5.1%
10% most volatile stocks in SA Market	8.0%
10% least volatile stocks in SA Market	3.2%

Stable Share Price: 1320 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1320's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	n/a	Mariano Lamazares	https://www.sspipe.com

Saudi Steel Pipes Company manufactures and sells steel pipes in Saudi Arabia and internationally. It operates through Steel Pipe and Process Equipment segments. The Steel Pipe segment manufactures welded steel pipes by high frequency induction welding and galvanizing, coating, threading, and bending of the pipes used in oil and gas, water, and construction sectors.

Saudi Steel Pipes Fundamentals Summary

How do Saudi Steel Pipes's earnings and revenue compare to its market cap?
1320 fundamental statistics
Market Cap	ر.س1.14b
Earnings (TTM)	ر.س5.99m
Revenue (TTM)	ر.س465.49m

190.9x

P/E Ratio

2.5x

P/S Ratio

Is 1320 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1320 income statement (TTM)
Revenue	ر.س465.49m
Cost of Revenue	ر.س411.55m
Gross Profit	ر.س53.94m
Other Expenses	ر.س47.94m
Earnings	ر.س5.99m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	11.59%
Net Profit Margin	1.29%
Debt/Equity Ratio	57.8%

How did 1320 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 1320 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1320?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1320. This is calculated by dividing 1320's market cap by their current preferred multiple.
What is 1320's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.س1.14b

1320 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.9x
Enterprise Value/EBITDA	21x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 1320's PS Ratio compare to its peers?

1320 PS Ratio vs Peers

The above table shows the PS ratio for 1320 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.8x
2240 Zamil Industrial Investment	0.4x	5.4%	ر.س1.2b
2220 National Metal Manufacturing and Casting	3.2x	n/a	ر.س771.7m
1321 East Pipes Integrated Company for Industry	2.5x	n/a	ر.س1.5b
9523 Group Five Pipe Saudi	1.2x	n/a	ر.س784.0m
1320 Saudi Steel Pipes	2.5x	n/a	ر.س1.1b

Price-To-Sales vs Peers: 1320 is expensive based on its Price-To-Sales Ratio (2.5x) compared to the peer average (1.8x).

Price to Earnings Ratio vs Industry

How does 1320's PE Ratio compare vs other companies in the Asian Metals and Mining Industry?

Price-To-Sales vs Industry: 1320 is expensive based on its Price-To-Sales Ratio (2.5x) compared to the SA Metals and Mining industry average (1.8x)

Price to Sales Ratio vs Fair Ratio

What is 1320's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1320 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1320's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1320 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1320's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1320's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Saudi Steel Pipes forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.7%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Saudi Steel Pipes has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Take a look at our analysis of 1320’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has Saudi Steel Pipes performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1320 has high quality earnings.

Growing Profit Margin: 1320 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 1320 has become profitable over the past 5 years, growing earnings by 13.6% per year.

Accelerating Growth: 1320 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1320 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).

Return on Equity

High ROE: 1320's Return on Equity (1.2%) is considered low.

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Financial Health

How is Saudi Steel Pipes's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1320's short term assets (SAR434.1M) do not cover its short term liabilities (SAR442.0M).

Long Term Liabilities: 1320's short term assets (SAR434.1M) exceed its long term liabilities (SAR95.0M).

Debt to Equity History and Analysis

Debt Level: 1320's net debt to equity ratio (37.6%) is considered satisfactory.

Reducing Debt: 1320's debt to equity ratio has increased from 39.1% to 57.8% over the past 5 years.

Debt Coverage: 1320's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1320's interest payments on its debt are not well covered by EBIT (2.5x coverage).

Balance Sheet

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Dividend

What is Saudi Steel Pipes's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1320's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1320'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 1320's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1320's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1320 is not paying a notable dividend for the SA market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1320 has not reported any payouts.

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Management

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

1.0yrs

Average board tenure

CEO

Mariano Lamazares

3.58yrs

Tenure

ر.س891,221

Compensation

Mr. Mariano Armengol Lamazares serves as Managing Director and Chief Executive Officer at Saudi Steel Pipes Company, since January 21, 2018 and also serves as its Director.

Board Members

Experienced Board: 1320's board of directors are not considered experienced ( 1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/07 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31