SASE:2002

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National Petrochemical

Market Cap

ر.س22.1b

Last Updated

2021/06/13 14:00 UTC

Data Sources

Company Financials +

Executive Summary

National Petrochemical Company, together with its subsidiaries, engages in development, establishment, operation, management, and maintenance of petrochemical factories, gas, petroleum, and other industries in Saudi Arabia, the Middle East, Asia, Europe, and Africa. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has National Petrochemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2002 is more volatile than 75% of SA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2002's weekly volatility (5%) has been stable over the past year, but is still higher than 75% of SA stocks.


Market Performance


7 Day Return

-3.1%

2002

0.07%

SA Chemicals

0.3%

SA Market


1 Year Return

89.8%

2002

48.9%

SA Chemicals

17.8%

SA Market

Return vs Industry: 2002 exceeded the SA Chemicals industry which returned 48.9% over the past year.

Return vs Market: 2002 exceeded the SA Market which returned 17.8% over the past year.


Shareholder returns

2002IndustryMarket
7 Day-3.1%0.07%0.3%
30 Day-6.3%2.7%0.5%
90 Day18.6%14.9%2.2%
1 Year92.8%89.8%53.2%48.9%22.3%17.8%
3 Year63.7%54.0%22.6%9.6%40.6%27.2%
5 Year193.8%164.6%104.3%69.5%94.5%64.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is National Petrochemical undervalued compared to its fair value and its price relative to the market?

18.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2002 (SAR45.9) is trading below our estimate of fair value (SAR56.1)

Significantly Below Fair Value: 2002 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2002 is poor value based on its PE Ratio (44.9x) compared to the SA Chemicals industry average (34.3x).

PE vs Market: 2002 is poor value based on its PE Ratio (44.9x) compared to the SA market (32.8x).


Price to Earnings Growth Ratio

PEG Ratio: 2002 is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: 2002 is overvalued based on its PB Ratio (2.6x) compared to the SA Chemicals industry average (2.2x).


Future Growth

How is National Petrochemical forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2002's forecast earnings growth (11.8% per year) is above the savings rate (8.8%).

Earnings vs Market: 2002's earnings (11.8% per year) are forecast to grow faster than the SA market (7.7% per year).

High Growth Earnings: 2002's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2002's revenue (2.9% per year) is forecast to grow slower than the SA market (4.1% per year).

High Growth Revenue: 2002's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2002's Return on Equity is forecast to be low in 3 years time (12.4%).


Past Performance

How has National Petrochemical performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2002 has a large one-off loss of SAR388.4M impacting its March 31 2021 financial results.

Growing Profit Margin: 2002's current net profit margins (7.4%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: 2002's earnings have declined by 9.3% per year over the past 5 years.

Accelerating Growth: 2002's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2002 had negative earnings growth (-8.8%) over the past year, making it difficult to compare to the Chemicals industry average (23.6%).


Return on Equity

High ROE: 2002's Return on Equity (5.7%) is considered low.


Financial Health

How is National Petrochemical's financial position?


Financial Position Analysis

Short Term Liabilities: 2002's short term assets (SAR4.2B) exceed its short term liabilities (SAR2.3B).

Long Term Liabilities: 2002's short term assets (SAR4.2B) exceed its long term liabilities (SAR2.2B).


Debt to Equity History and Analysis

Debt Level: 2002's debt to equity ratio (17.6%) is considered satisfactory.

Reducing Debt: 2002's debt to equity ratio has reduced from 153.3% to 17.6% over the past 5 years.

Debt Coverage: 2002's debt is well covered by operating cash flow (79.5%).

Interest Coverage: 2002's interest payments on its debt are well covered by EBIT (23.5x coverage).


Balance Sheet


Dividend

What is National Petrochemical current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2002's dividend (1.63%) is higher than the bottom 25% of dividend payers in the SA market (1.49%).

High Dividend: 2002's dividend (1.63%) is low compared to the top 25% of dividend payers in the SA market (4.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2002 has been paying a dividend for less than 10 years.

Growing Dividend: 2002's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.4%), 2002's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2002's dividends in 3 years are forecast to be covered by earnings (81.4% payout ratio).


Next Steps

Management

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

2.2yrs

Average board tenure


CEO

Abdulrahman Alismail

no data

Tenure

Mr. Abdulrahman Saleh Alismail serves as the Chief Executive Officer and Executive Director at National Petrochemical Company and serves as its Managing Director. He serves as Chief Executive Officer at Sa...


Board Members

Experienced Board: 2002's board of directors are not considered experienced ( 2.2 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

National Petrochemical Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Petrochemical Company
  • Ticker: 2002
  • Exchange: SASE
  • Founded: 2008
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ر.س22.056b
  • Shares outstanding: 480.00m
  • Website: https://www.petrochem.com.sa

Location

  • National Petrochemical Company
  • PO Box 99833
  • Riyadh
  • 11625
  • Saudi Arabia

Listings


Biography

National Petrochemical Company, together with its subsidiaries, engages in development, establishment, operation, management, and maintenance of petrochemical factories, gas, petroleum, and other industrie...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 14:00
End of Day Share Price2021/06/10 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.