SASE:4300

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Dar Al Arkan Real Estate Development

Market Cap

ر.س11.4b

Last Updated

2021/06/13 00:38 UTC

Data Sources

Company Financials +

Executive Summary

Dar Al Arkan Real Estate Development Company, together with its subsidiaries, primarily engages in the development, sale, and lease of real estate projects in the Kingdom of Saudi Arabia. More Details


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Dar Al Arkan Real Estate Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4300 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 4300's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

4300

1.3%

SA Real Estate

0.3%

SA Market


1 Year Return

44.1%

4300

52.2%

SA Real Estate

17.8%

SA Market

Return vs Industry: 4300 underperformed the SA Real Estate industry which returned 52.2% over the past year.

Return vs Market: 4300 exceeded the SA Market which returned 17.8% over the past year.


Shareholder returns

4300IndustryMarket
7 Day0.2%1.3%0.3%
30 Day-0.8%6.8%0.5%
90 Day15.0%16.8%2.2%
1 Year44.1%44.1%53.9%52.2%22.3%17.8%
3 Year-8.5%-8.5%4.2%1.9%40.6%27.2%
5 Year81.6%73.9%-10.7%-14.0%94.5%64.7%

Long-Term Price Volatility Vs. Market

How volatile is Dar Al Arkan Real Estate Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dar Al Arkan Real Estate Development undervalued compared to its fair value and its price relative to the market?

325.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4300 (SAR10.52) is trading above our estimate of fair value (SAR3.37)

Significantly Below Fair Value: 4300 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4300 is poor value based on its PE Ratio (325.6x) compared to the SA Real Estate industry average (61.2x).

PE vs Market: 4300 is poor value based on its PE Ratio (325.6x) compared to the SA market (32.9x).


Price to Earnings Growth Ratio

PEG Ratio: 4300 is poor value based on its PEG Ratio (8.8x)


Price to Book Ratio

PB vs Industry: 4300 is good value based on its PB Ratio (0.6x) compared to the SA Real Estate industry average (2.1x).


Future Growth

How is Dar Al Arkan Real Estate Development forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

37.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4300's forecast earnings growth (37.2% per year) is above the savings rate (8.8%).

Earnings vs Market: 4300's earnings (37.2% per year) are forecast to grow faster than the SA market (7.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4300's revenue (4% per year) is forecast to grow slower than the SA market (4.1% per year).

High Growth Revenue: 4300's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4300's Return on Equity is forecast to be low in 3 years time (2.6%).


Past Performance

How has Dar Al Arkan Real Estate Development performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4300 has high quality earnings.

Growing Profit Margin: 4300's current net profit margins (1.8%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: 4300's earnings have declined by 12.3% per year over the past 5 years.

Accelerating Growth: 4300's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4300 had negative earnings growth (-88%) over the past year, making it difficult to compare to the Real Estate industry average (-52.5%).


Return on Equity

High ROE: 4300's Return on Equity (0.2%) is considered low.


Financial Health

How is Dar Al Arkan Real Estate Development's financial position?


Financial Position Analysis

Short Term Liabilities: 4300's short term assets (SAR9.9B) exceed its short term liabilities (SAR2.0B).

Long Term Liabilities: 4300's short term assets (SAR9.9B) exceed its long term liabilities (SAR9.7B).


Debt to Equity History and Analysis

Debt Level: 4300's debt to equity ratio (53.2%) is considered high.

Reducing Debt: 4300's debt to equity ratio has increased from 34.7% to 53.2% over the past 5 years.

Debt Coverage: 4300's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 4300's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Dividend

What is Dar Al Arkan Real Estate Development current dividend yield, its reliability and sustainability?

3.96%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 4300's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 4300's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4300's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4300's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 4300 is not paying a notable dividend for the SA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 4300's dividend in 3 years as they are not forecast to pay a notable one for the SA market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Anand Raheja

2yrs

Tenure

Mr. Anand Raheja has served as a Chief Executive Officer of Dar Al Arkan Real Estate Development Company since June 2019. He served as a Chief Financial Officer of Dar Al Arkan Real Estate Development Comp...


Leadership Team

Experienced Management: 4300's management team is considered experienced (2 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

Dar Al Arkan Real Estate Development Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dar Al Arkan Real Estate Development Company
  • Ticker: 4300
  • Exchange: SASE
  • Founded: 1994
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: ر.س11.362b
  • Shares outstanding: 1.08b
  • Website: https://www.daralarkan.com

Number of Employees


Location

  • Dar Al Arkan Real Estate Development Company
  • Al Wizarat
  • Beside Riyadh Marriott Hotel
  • Riyadh
  • 12622
  • Saudi Arabia

Listings


Biography

Dar Al Arkan Real Estate Development Company, together with its subsidiaries, primarily engages in the development, sale, and lease of real estate projects in the Kingdom of Saudi Arabia. The company opera...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 00:38
End of Day Share Price2021/06/10 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.