SASE:2310

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Sahara International Petrochemical

Market Cap

ر.س20.3b

Last Updated

2021/06/18 11:52 UTC

Data Sources

Company Financials +

Executive Summary

Sahara International Petrochemical Company owns, establishes, operates, and manages industrial projects related to chemical and petrochemical industries in the Kingdom of Saudi Arabia and internationally. More Details


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2310 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2310's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

2310

-1.3%

SA Chemicals

-0.07%

SA Market


1 Year Return

90.0%

2310

43.8%

SA Chemicals

15.5%

SA Market

Return vs Industry: 2310 exceeded the SA Chemicals industry which returned 43.8% over the past year.

Return vs Market: 2310 exceeded the SA Market which returned 15.5% over the past year.


Shareholder returns

2310IndustryMarket
7 Day-1.2%-1.3%-0.07%
30 Day-1.1%0.5%0.7%
90 Day34.0%14.6%4.1%
1 Year95.3%90.0%48.0%43.8%19.9%15.5%
3 Year47.1%30.9%21.6%8.7%41.8%28.3%
5 Year138.5%107.2%100.9%66.7%94.7%64.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2310 (SAR28.3) is trading above our estimate of fair value (SAR21.6)

Significantly Below Fair Value: 2310 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2310 is good value based on its PE Ratio (32.1x) compared to the SA Chemicals industry average (34.1x).

PE vs Market: 2310's PE Ratio (32.1x) is in line with the SA market.


Price to Earnings Growth Ratio

PEG Ratio: 2310's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 2310 is good value based on its PB Ratio (1.6x) compared to the SA Chemicals industry average (2.2x).


Future Growth

How is Sahara International Petrochemical forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2310's earnings are forecast to decline over the next 3 years (-6.1% per year).

Earnings vs Market: 2310's earnings are forecast to decline over the next 3 years (-6.1% per year).

High Growth Earnings: 2310's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2310's revenue is expected to decline over the next 3 years (-2.9% per year).

High Growth Revenue: 2310's revenue is forecast to decline over the next 3 years (-2.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2310's Return on Equity is forecast to be low in 3 years time (7.5%).


Past Performance

How has Sahara International Petrochemical performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2310 has a large one-off loss of SAR231.1M impacting its March 31 2021 financial results.

Growing Profit Margin: 2310's current net profit margins (10.8%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 2310's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: 2310's earnings growth over the past year (385%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: 2310 earnings growth over the past year (385%) exceeded the Chemicals industry 23.6%.


Return on Equity

High ROE: 2310's Return on Equity (4.4%) is considered low.


Financial Health

How is Sahara International Petrochemical's financial position?


Financial Position Analysis

Short Term Liabilities: 2310's short term assets (SAR5.9B) exceed its short term liabilities (SAR3.9B).

Long Term Liabilities: 2310's short term assets (SAR5.9B) do not cover its long term liabilities (SAR6.3B).


Debt to Equity History and Analysis

Debt Level: 2310's debt to equity ratio (50.7%) is considered high.

Reducing Debt: 2310's debt to equity ratio has reduced from 120.6% to 50.7% over the past 5 years.

Debt Coverage: 2310's debt is well covered by operating cash flow (26%).

Interest Coverage: 2310's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2310's dividend (1.77%) is higher than the bottom 25% of dividend payers in the SA market (1.51%).

High Dividend: 2310's dividend (1.77%) is low compared to the top 25% of dividend payers in the SA market (4.53%).


Stability and Growth of Payments

Stable Dividend: 2310 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2310 has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.8%), 2310's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2310's dividends in 3 years are forecast to be covered by earnings (67.1% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Abdullah Al-Saadoon (63 yo)

0.42

Tenure

Eng. Abdullah S. Al-Saadoon serves as Chief Operating Officer at Sahara International Petrochemical Company (Alternate name Sipchem) since 2019 and has been its Chief Executive Officer since January 01, 20...


Leadership Team

Experienced Management: 2310's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2310's board of directors are not considered experienced ( 1.5 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

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


Key Information

  • Name: Sahara International Petrochemical Company
  • Ticker: 2310
  • Exchange: SASE
  • Founded: 1999
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ر.س20.251b
  • Shares outstanding: 727.16m
  • Website: https://www.sipchem.com

Number of Employees


Location

  • Sahara International Petrochemical Company
  • PO Box 355776
  • Riyadh
  • 11383
  • Saudi Arabia

Listings


Biography

Sahara International Petrochemical Company owns, establishes, operates, and manages industrial projects related to chemical and petrochemical industries in the Kingdom of Saudi Arabia and internationally. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 11:52
End of Day Share Price2021/06/17 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.