SASE:2330

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Advanced Petrochemical

Market Cap

ر.س16.1b

Last Updated

2021/07/30 14:04 UTC

Data Sources

Company Financials +

Executive Summary

Advanced Petrochemical Company produces and sells polypropylene, polysilicon, and polysilicon downstream products in the Kingdom of Saudi Arabia. More Details


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2330 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2330's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

3.9%

2330

2.6%

SA Chemicals

0.6%

SA Market


1 Year Return

44.5%

2330

49.1%

SA Chemicals

15.1%

SA Market

Return vs Industry: 2330 underperformed the SA Chemicals industry which returned 47.7% over the past year.

Return vs Market: 2330 exceeded the SA Market which returned 14.8% over the past year.


Shareholder returns

2330IndustryMarket
7 Day3.9%2.6%0.6%
30 Day2.9%1.5%-0.3%
90 Day-8.4%1.2%0.3%
1 Year48.6%44.5%53.4%49.1%19.5%15.1%
3 Year69.6%48.3%19.1%6.6%43.7%30.5%
5 Year185.3%121.4%106.9%71.5%106.8%75.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2330 (SAR74.4) is trading below our estimate of fair value (SAR232.22)

Significantly Below Fair Value: 2330 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2330 is good value based on its PE Ratio (24.3x) compared to the SA Chemicals industry average (33.8x).

PE vs Market: 2330 is good value based on its PE Ratio (24.3x) compared to the SA market (33.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2330 is poor value based on its PEG Ratio (15.9x)


Price to Book Ratio

PB vs Industry: 2330 is overvalued based on its PB Ratio (4.8x) compared to the SA Chemicals industry average (2.5x).


Future Growth

How is Advanced Petrochemical forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2330's forecast earnings growth (1.5% per year) is below the savings rate (8.8%).

Earnings vs Market: 2330's earnings (1.5% per year) are forecast to grow slower than the SA market (6.8% per year).

High Growth Earnings: 2330's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2330's revenue (9% per year) is forecast to grow faster than the SA market (3.3% per year).

High Growth Revenue: 2330's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2330's Return on Equity is forecast to be low in 3 years time (19.5%).


Past Performance

How has Advanced Petrochemical performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2330 has high quality earnings.

Growing Profit Margin: 2330's current net profit margins (28.5%) are higher than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: 2330's earnings have declined by 1.7% per year over the past 5 years.

Accelerating Growth: 2330's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2330 had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Chemicals industry average (40.5%).


Return on Equity

High ROE: 2330's Return on Equity (19.8%) is considered low.


Financial Health

How is Advanced Petrochemical's financial position?


Financial Position Analysis

Short Term Liabilities: 2330's short term assets (SAR1.0B) exceed its short term liabilities (SAR947.4M).

Long Term Liabilities: 2330's short term assets (SAR1.0B) exceed its long term liabilities (SAR137.3M).


Debt to Equity History and Analysis

Debt Level: 2330's debt to equity ratio (9.7%) is considered satisfactory.

Reducing Debt: 2330's debt to equity ratio has reduced from 45.3% to 9.7% over the past 5 years.

Debt Coverage: 2330's debt is well covered by operating cash flow (241.5%).

Interest Coverage: 2330's interest payments on its debt are well covered by EBIT (68.1x coverage).


Balance Sheet


Dividend

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

3.49%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 31 2021Ex Dividend DateAug 22 2021Dividend Pay DateAug 30 20218 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 2330's dividend (3.49%) is higher than the bottom 25% of dividend payers in the SA market (1.46%).

High Dividend: 2330's dividend (3.49%) is low compared to the top 25% of dividend payers in the SA market (4.32%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2330 has been paying a dividend for less than 10 years.

Growing Dividend: 2330's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.9%), 2330's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2330's dividends in 3 years are forecast to be covered by earnings (75.2% payout ratio).


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Fahad bin Al Matrafi

1.33yrs

Tenure

Engineer Fahad Salem Al Matrafi serves as President and Chief Executive Officer at Advanced Petrochemical Company since March 2020 and served as Chief Financial Officer since August 16, 2019 until March 20...


Board Members

Experienced Board: 2330's board of directors are not considered experienced ( 2.5 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

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


Key Information

  • Name: Advanced Petrochemical Company
  • Ticker: 2330
  • Exchange: SASE
  • Founded: 2005
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ر.س16.106b
  • Shares outstanding: 216.47m
  • Website: https://www.advancedpetrochem.com

Location

  • Advanced Petrochemical Company
  • Jubail Industrial City
  • PO Box: 11022
  • Jubail
  • 31961
  • Saudi Arabia

Listings


Biography

Advanced Petrochemical Company produces and sells polypropylene, polysilicon, and polysilicon downstream products in the Kingdom of Saudi Arabia. The company provides photovoltaic cells and photovoltaic; h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 14:04
End of Day Share Price2021/07/29 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.