SASE:2010

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Saudi Basic Industries

Market Cap

ر.س364.2b

Last Updated

2021/08/02 15:31 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Saudi Basic Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2010 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2010's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

2010

1.4%

SA Chemicals

0.2%

SA Market


1 Year Return

36.6%

2010

49.2%

SA Chemicals

15.0%

SA Market

Return vs Industry: 2010 underperformed the SA Chemicals industry which returned 49.2% over the past year.

Return vs Market: 2010 exceeded the SA Market which returned 15% over the past year.


Shareholder returns

2010IndustryMarket
7 Day1.2%1.4%0.2%
30 Day0%2.0%-0.2%
90 Day-0.5%3.9%0.6%
1 Year40.7%36.6%53.5%49.2%19.4%15.0%
3 Year7.0%-5.2%19.5%6.9%43.9%31.1%
5 Year82.6%49.0%105.5%70.4%106.6%75.7%

Long-Term Price Volatility Vs. Market

How volatile is Saudi Basic Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Saudi Basic Industries undervalued compared to its fair value and its price relative to the market?

61.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2010 (SAR121.4) is trading above our estimate of fair value (SAR118.14)

Significantly Below Fair Value: 2010 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2010 is poor value based on its PE Ratio (61x) compared to the SA Chemicals industry average (34.8x).

PE vs Market: 2010 is poor value based on its PE Ratio (61x) compared to the SA market (33.7x).


Price to Earnings Growth Ratio

PEG Ratio: 2010 is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: 2010 is good value based on its PB Ratio (2.1x) compared to the SA Chemicals industry average (2.5x).


Future Growth

How is Saudi Basic Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2010's forecast earnings growth (11.5% per year) is above the savings rate (8.8%).

Earnings vs Market: 2010's earnings (11.5% per year) are forecast to grow faster than the SA market (6.7% per year).

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

Revenue vs Market: 2010's revenue (2.4% per year) is forecast to grow slower than the SA market (3.2% per year).

High Growth Revenue: 2010's revenue (2.4% per year) is forecast to grow slower than 20% 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 (9.8%).


Past Performance

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

-29.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2010 has high quality earnings.

Growing Profit Margin: 2010's current net profit margins (4.8%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: 2010's earnings have declined by 29.9% per year over the past 5 years.

Accelerating Growth: 2010's earnings growth over the past year (703%) exceeds its 5-year average (-29.9% per year).

Earnings vs Industry: 2010 earnings growth over the past year (703%) exceeded the Chemicals industry 40.5%.


Return on Equity

High ROE: 2010's Return on Equity (4.2%) is considered low.


Financial Health

How is Saudi Basic Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 2010's short term assets (SAR86.4B) exceed its short term liabilities (SAR38.3B).

Long Term Liabilities: 2010's short term assets (SAR86.4B) exceed its long term liabilities (SAR59.9B).


Debt to Equity History and Analysis

Debt Level: 2010's debt to equity ratio (18.6%) is considered satisfactory.

Reducing Debt: 2010's debt to equity ratio has reduced from 34.6% to 18.6% over the past 5 years.

Debt Coverage: 2010's debt is well covered by operating cash flow (66.5%).

Interest Coverage: 2010's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

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

2.68%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 02 2021Ex Dividend DateSep 20 2021Dividend Pay DateOct 03 202113 days from Ex DividendBuy in the next 48 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 2010's dividend (2.68%) is higher than the bottom 25% of dividend payers in the SA market (1.45%).

High Dividend: 2010's dividend (2.68%) is low compared to the top 25% of dividend payers in the SA market (4.08%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (150.8%), 2010's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2010's dividends in 3 years are forecast to be covered by earnings (73.7% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Yousef Bin Abdullah Al-Benyan

6.58yrs

Tenure

ر.س725,000

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 considered experienced (4.7 years average tenure).


Board Members

Experienced Board: 2010's board of directors are considered experienced (3.6 years average tenure).


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saudi Basic Industries Corporation
  • Ticker: 2010
  • Exchange: SASE
  • Founded: 1976
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ر.س364.200b
  • Shares outstanding: 3.00b
  • Website: https://www.sabic.com

Number of Employees


Location

  • Saudi Basic Industries Corporation
  • PO Box 5101
  • Riyadh
  • 11422
  • Saudi Arabia

Listings


Biography

Saudi Basic Industries Corporation manufactures, markets, and distributes chemicals, polymers, plastics, agri-nutrients, and metal products worldwide. The company operates through Petrochemicals & Specialt...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 15:31
End of Day Share Price2021/08/02 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.