SASE:4321

Stock Analysis Report

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Header cover image

Market Cap

ر.س12.4b

Last Updated

2021/06/10 23:23 UTC

Data Sources

Company Financials +

Share Price & News

How has Arabian Centres's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4321 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 4321's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.2%

4321

1.3%

SA Real Estate

0.3%

SA Market


1 Year Return

23.2%

4321

52.3%

SA Real Estate

17.9%

SA Market

Return vs Industry: 4321 underperformed the SA Real Estate industry which returned 50.4% over the past year.

Return vs Market: 4321 exceeded the SA Market which returned 17.8% over the past year.


Shareholder returns

4321IndustryMarket
7 Day-0.2%1.3%0.3%
30 Day0%6.8%0.5%
90 Day19.4%17.1%2.4%
1 Year28.4%23.2%53.9%52.3%22.3%17.9%
3 Yearn/a4.2%1.9%40.8%27.5%
5 Yearn/a-10.6%-13.8%94.8%64.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arabian Centres undervalued compared to its fair value and its price relative to the market?

27.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4321 (SAR25.8) is trading above our estimate of fair value (SAR18.98)

Significantly Below Fair Value: 4321 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4321 is good value based on its PE Ratio (26.9x) compared to the SA Real Estate industry average (59.7x).

PE vs Market: 4321 is good value based on its PE Ratio (26.9x) compared to the SA market (32.7x).


Price to Earnings Growth Ratio

PEG Ratio: 4321 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 4321's PB Ratio (2.1x) is in line with the SA Real Estate industry average.


Future Growth

How is Arabian Centres forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4321's forecast earnings growth (27.4% per year) is above the savings rate (8.8%).

Earnings vs Market: 4321's earnings (27.4% per year) are forecast to grow faster than the SA market (7.8% per year).

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

Revenue vs Market: 4321's revenue (12% per year) is forecast to grow faster than the SA market (3.8% per year).

High Growth Revenue: 4321's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4321's Return on Equity is forecast to be low in 3 years time (12.2%).


Past Performance

How has Arabian Centres performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4321 has high quality earnings.

Growing Profit Margin: 4321's current net profit margins (23.7%) are lower than last year (34.7%).


Past Earnings Growth Analysis

Earnings Trend: 4321's earnings have declined by 11.8% per year over the past 5 years.

Accelerating Growth: 4321's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4321 had negative earnings growth (-42%) over the past year, making it difficult to compare to the Real Estate industry average (-52.5%).


Return on Equity

High ROE: 4321's Return on Equity (7.7%) is considered low.


Financial Health

How is Arabian Centres's financial position?


Financial Position Analysis

Short Term Liabilities: 4321's short term assets (SAR1.8B) exceed its short term liabilities (SAR1.3B).

Long Term Liabilities: 4321's short term assets (SAR1.8B) do not cover its long term liabilities (SAR10.7B).


Debt to Equity History and Analysis

Debt Level: 4321's debt to equity ratio (117.8%) is considered high.

Reducing Debt: 4321's debt to equity ratio has increased from 91.4% to 117.8% over the past 5 years.

Debt Coverage: 4321's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: 4321's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Dividend

What is Arabian Centres's current dividend yield, its reliability and sustainability?

4.81%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 11 2021Ex Dividend DateJul 04 2021Dividend Pay DateJul 15 202111 days from Ex DividendBuy in the next 23 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 4321's dividend (4.84%) is higher than the bottom 25% of dividend payers in the SA market (1.49%).

High Dividend: 4321's dividend (4.84%) is in the top 25% of dividend payers in the SA market (4.58%)


Stability and Growth of Payments

Stable Dividend: 4321 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 4321 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.3%), 4321's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4321's dividends in 3 years are not forecast to be well covered by earnings (107.3% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Faisal Al Jedaie

1.08yrs

Tenure

Mr. Faisal Abdullah Al Jedaie has been Chief Executive Officer at Arabian Centres Company Limited since May 17, 2020. He has had a distinguished career with wide-ranging experience in the field of business...


Leadership Team

Experienced Management: 4321's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: 4321's board of directors are considered experienced (4 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

Arabian Centres Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arabian Centres Company
  • Ticker: 4321
  • Exchange: SASE
  • Founded: 2002
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: ر.س12.350b
  • Shares outstanding: 475.00m
  • Website: https://www.arabiancentres.com

Number of Employees


Location

  • Arabian Centres Company
  • U Walk Centre
  • Prince Turki Ibn Abdulaziz Al Awwal Road
  • Riyadh
  • Saudi Arabia

Listings


Biography

Arabian Centres Company develops, owns, and operates contemporary lifestyle centers in the Kingdom of Saudi Arabia. It operates a portfolio of 21 lifestyle centers in 11 cities, which comprise approximatel...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/10 23:23
End of Day Share Price2021/06/10 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.