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.
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.
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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.
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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.
Top Shareholders
Company Information
Saudi Basic Industries Corporation's employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
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
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.