Saudi Basic Industries (SASE:2010) - Share price, News & Analysis

Q: What is the Fair Price of 2010 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2010 (SAR103.8) is trading below our estimate of [[fair value]] (SAR176.63)

2010 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

2010 Stock Overview

Saudi Basic Industries Corporation manufactures, markets, and distributes chemicals, polymers, plastics, agri-nutrients, and metal products worldwide.

Rewards

Trading at 41.2% below our estimate of its fair value

Earnings grew by 313% over the past year

Risk Analysis

Unstable dividend track record

Saudi Basic Industries Competitors

Yanbu National Petrochemical

SASE:2290

ر.س29.8b

Saudi Kayan Petrochemical

SASE:2350

ر.س24.2b

Sahara International Petrochemical

SASE:2310

ر.س36.9b

Advanced Petrochemical

SASE:2330

ر.س14.3b

Price History & Performance

Summary of all time highs, changes and price drops for Saudi Basic Industries
Historical stock prices
Current Share Price	ر.س103.80
52 Week High	ر.س141.40
52 Week Low	ر.س93.50
Beta	0.53
1 Month Change	6.35%
3 Month Change	-14.22%
1 Year Change	-15.47%
3 Year Change	-0.19%
5 Year Change	5.85%
Change since IPO	497.31%

Recent News & Updates

Aug 08

Saudi Basic Industries (TADAWUL:2010) Is Increasing Its Dividend To SAR2.25

Saudi Basic Industries Corporation ( TADAWUL:2010 ) will increase its dividend from last year's comparable payment on...

Aug 05

The Returns At Saudi Basic Industries (TADAWUL:2010) Aren't Growing

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

Jul 15

Saudi Basic Industries Corporation's (TADAWUL:2010) Business And Shares Still Trailing The Market

Saudi Basic Industries Corporation's ( TADAWUL:2010 ) price-to-earnings (or "P/E") ratio of 11.5x might make it look...

Jun 23

Saudi Basic Industries (TADAWUL:2010) Is Increasing Its Dividend To ر.س2.25

Saudi Basic Industries Corporation ( TADAWUL:2010 ) will increase its dividend on the 2nd of October to ر.س2.25. This...

Shareholder Returns

	2010	SA Chemicals	SA Market
7D	3.8%	2.5%	0.4%
1Y	-15.5%	-9.5%	18.2%

Return vs Industry: 2010 underperformed the SA Chemicals industry which returned -9.5% over the past year.

Return vs Market: 2010 underperformed the SA Market which returned 18.2% over the past year.

Price Volatility

Is 2010's price volatile compared to industry and market?
2010 volatility
2010 Average Weekly Movement	3.6%
Chemicals Industry Average Movement	5.3%
Market Average Movement	5.2%
10% most volatile stocks in SA Market	8.0%
10% least volatile stocks in SA Market	3.3%

Stable Share Price: 2010 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2010's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	n/a	Yousef Bin Abdullah Al-Benyan	https://www.sabic.com

Saudi Basic Industries Corporation manufactures, markets, and distributes chemicals, polymers, plastics, agri-nutrients, and metal products worldwide. The company operates through Petrochemicals & Specialties, Agri-Nutrients, and Metals (Hadeed) segments. It offers polymers, such as acrylonitrile butadiene styrene, acrylonitrile styrene acrylate, carbon black, ethylene vinyl acetate, polyamide, polybutylene terephthalate, polycarbonate, polycarbonate/acrylonitrile-butadiene-styrene, polyethylene terephthalate, polymethyl methacrylate, polyoxymethylene, polypropylene, polystyrene, polyethylane, polyvinyl chloride, and synthetic rubbers.

Saudi Basic Industries Fundamentals Summary

How do Saudi Basic Industries's earnings and revenue compare to its market cap?
2010 fundamental statistics
Market Cap	ر.س311.40b
Earnings (TTM)	ر.س24.68b
Revenue (TTM)	ر.س189.99b

12.6x

P/E Ratio

1.6x

P/S Ratio

Is 2010 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2010 income statement (TTM)
Revenue	ر.س189.99b
Cost of Revenue	ر.س134.93b
Gross Profit	ر.س55.07b
Other Expenses	ر.س30.39b
Earnings	ر.س24.68b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.23
Gross Margin	28.98%
Net Profit Margin	12.99%
Debt/Equity Ratio	17.4%

How did 2010 perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

49%

Payout Ratio

Does 2010 pay a reliable dividends?

See 2010 dividend history and benchmarks

When do you need to buy 2010 by to receive an upcoming dividend?
Saudi Basic Industries dividend dates
Ex Dividend Date	Sep 12 2022
Dividend Pay Date	Oct 02 2022
Days until Ex dividend	31 days
Days until Dividend pay date	51 days

Does 2010 pay a reliable dividends?

See 2010 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 2010 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 2010?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2010. This is calculated by dividing 2010's market cap by their current preferred multiple.
What is 2010's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.س311.40b

2010 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	1.7x
Enterprise Value/EBITDA	7.4x
PEG Ratio	2.5x

Price to Earnings Ratio vs Peers

How does 2010's PE Ratio compare to its peers?

2010 PE Ratio vs Peers

The above table shows the PE ratio for 2010 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.1x
2290 Yanbu National Petrochemical	27.5x	14.2%	ر.س29.8b
2350 Saudi Kayan Petrochemical	16.4x	12.3%	ر.س24.2b
2310 Sahara International Petrochemical	7.9x	-12.3%	ر.س36.9b
2330 Advanced Petrochemical	17.5x	-1.1%	ر.س14.3b
2010 Saudi Basic Industries	12.6x	5.1%	ر.س311.4b

Price-To-Earnings vs Peers: 2010 is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (17.3x).

Price to Earnings Ratio vs Industry

How does 2010's PE Ratio compare vs other companies in the Asian Chemicals Industry?

Price-To-Earnings vs Industry: 2010 is good value based on its Price-To-Earnings Ratio (12.6x) compared to the SA Chemicals industry average (15.8x)

Price to Earnings Ratio vs Fair Ratio

What is 2010's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2010 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2010's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 2010 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2010 (SAR103.8) is trading below our estimate of fair value (SAR176.63)

Significantly Below Fair Value: 2010 is trading below fair value by more than 20%.

Analyst Price Targets

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

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Saudi Basic Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

5.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2010's forecast earnings growth (5.1% per year) is below the savings rate (8.9%).

Earnings vs Market: 2010's earnings (5.1% per year) are forecast to grow faster than the SA market (-0.4% per year).

High Growth Earnings: 2010's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2010's revenue is expected to decline over the next 3 years (-4.1% per year).

High Growth Revenue: 2010's revenue is forecast to decline over the next 3 years (-4.1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2010's Return on Equity is forecast to be low in 3 years time (11.1%).

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Past Performance

How has Saudi Basic Industries performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-11.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2010 has high quality earnings.

Growing Profit Margin: 2010's current net profit margins (13%) are higher than last year (4.8%).

Past Earnings Growth Analysis

Earnings Trend: 2010's earnings have declined by 11.7% per year over the past 5 years.

Accelerating Growth: 2010's earnings growth over the past year (313%) exceeds its 5-year average (-11.7% per year).

Earnings vs Industry: 2010 earnings growth over the past year (313%) exceeded the Chemicals industry 113.9%.

Return on Equity

High ROE: 2010's Return on Equity (15%) is considered low.

Discover strong past performing companies

Financial Health

How is Saudi Basic Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 2010's short term assets (SAR113.4B) exceed its short term liabilities (SAR44.2B).

Long Term Liabilities: 2010's short term assets (SAR113.4B) exceed its long term liabilities (SAR58.4B).

Debt to Equity History and Analysis

Debt Level: 2010 has more cash than its total debt.

Reducing Debt: 2010's debt to equity ratio has reduced from 29.8% to 17.4% over the past 5 years.

Debt Coverage: 2010's debt is well covered by operating cash flow (104%).

Interest Coverage: 2010's interest payments on its debt are well covered by EBIT (24.7x coverage).

Balance Sheet

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Dividend

What is Saudi Basic Industries's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

4.34%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 2010's dividend (4.34%) is higher than the bottom 25% of dividend payers in the SA market (1.82%).

High Dividend: 2010's dividend (4.34%) is in the top 25% of dividend payers in the SA market (4.33%)

Stability and Growth of Payments

Stable Dividend: 2010's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2010's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.6%), 2010's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46%), 2010's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.8yrs

Average management tenure

CEO

Yousef Bin Abdullah Al-Benyan

7.58yrs

Tenure

ر.س490,000

Compensation

Mr. Yousef Bin Abdullah Al-Benyan serves as Non-Executive Chairman at Saudi Arabian Fertilizer Company since 2020. He is Chief Executive Officer of Saudi Basic Industries Corporation and has been its Vice...

Leadership Team

Experienced Management: 2010's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: 2010'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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31