SASE:4003

Stock Analysis Report

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Market Cap

ر.س7.8b

Last Updated

2021/07/30 14:04 UTC

Data Sources

Company Financials +

Executive Summary

United Electronics Company, together with its subsidiaries, engages in the wholesale and retail operations in the Kingdom of Saudi Arabia and internationally. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has United Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4003 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 4003's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

4003

0.5%

SA Specialty Retail

0.6%

SA Market


1 Year Return

137.5%

4003

46.6%

SA Specialty Retail

15.1%

SA Market

Return vs Industry: 4003 exceeded the SA Specialty Retail industry which returned 46.9% over the past year.

Return vs Market: 4003 exceeded the SA Market which returned 14.8% over the past year.


Shareholder returns

4003IndustryMarket
7 Day0.3%0.5%0.6%
30 Day1.8%-3.8%-0.3%
90 Day12.1%3.6%0.3%
1 Year150.2%137.5%52.1%46.6%19.5%15.1%
3 Year280.9%242.6%82.7%63.6%43.7%30.5%
5 Year885.5%743.0%117.8%91.5%106.8%75.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is United Electronics undervalued compared to its fair value and its price relative to the market?

23.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4003 (SAR135.4) is trading above our estimate of fair value (SAR107.76)

Significantly Below Fair Value: 4003 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4003 is good value based on its PE Ratio (23.9x) compared to the SA Specialty Retail industry average (28.9x).

PE vs Market: 4003 is good value based on its PE Ratio (23.9x) compared to the SA market (33.9x).


Price to Earnings Growth Ratio

PEG Ratio: 4003 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 4003 is overvalued based on its PB Ratio (10x) compared to the SA Specialty Retail industry average (6.6x).


Future Growth

How is United Electronics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4003's forecast earnings growth (14.9% per year) is above the savings rate (8.8%).

Earnings vs Market: 4003's earnings (14.9% per year) are forecast to grow faster than the SA market (6.8% per year).

High Growth Earnings: 4003's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4003's revenue (7.2% per year) is forecast to grow faster than the SA market (3.3% per year).

High Growth Revenue: 4003's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4003's Return on Equity is forecast to be high in 3 years time (35.2%)


Past Performance

How has United Electronics performed over the past 5 years?

41.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4003 has a high level of non-cash earnings.

Growing Profit Margin: 4003's current net profit margins (5.4%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: 4003 has become profitable over the past 5 years, growing earnings by 41.4% per year.

Accelerating Growth: 4003's earnings growth over the past year (58.2%) exceeds its 5-year average (41.4% per year).

Earnings vs Industry: 4003 earnings growth over the past year (58.2%) exceeded the Specialty Retail industry 1.6%.


Return on Equity

High ROE: 4003's Return on Equity (41.8%) is considered outstanding.


Financial Health

How is United Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: 4003's short term assets (SAR2.0B) exceed its short term liabilities (SAR1.6B).

Long Term Liabilities: 4003's short term assets (SAR2.0B) exceed its long term liabilities (SAR1.0B).


Debt to Equity History and Analysis

Debt Level: 4003's debt to equity ratio (62.7%) is considered high.

Reducing Debt: 4003's debt to equity ratio has increased from 20.3% to 62.7% over the past 5 years.

Debt Coverage: 4003's debt is well covered by operating cash flow (26%).

Interest Coverage: 4003's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Dividend

What is United Electronics's current dividend yield, its reliability and sustainability?

2.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4003's dividend (2.95%) is higher than the bottom 25% of dividend payers in the SA market (1.46%).

High Dividend: 4003's dividend (2.95%) 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, 4003 has been paying a dividend for less than 10 years.

Growing Dividend: 4003's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.9%), 4003's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4003's dividends in 3 years are forecast to be well covered by earnings (46.7% payout ratio).


Next Steps

Management

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

4.5yrs

Average board tenure


CEO

Mohamed Galal Fahmy (56 yo)

5.33yrs

Tenure

Mr. Mohamed Galal Ali Fahmy serves as the Chief Executive Officer and Manager of United Electronics Company since March 10, 2016. Mr. Fahmy serves as a Director of United Electronics Company since 2007. He...


Board Members

Experienced Board: 4003's board of directors are considered experienced (4.5 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

United Electronics Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Electronics Company
  • Ticker: 4003
  • Exchange: SASE
  • Founded: 2002
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: ر.س7.799b
  • Shares outstanding: 57.60m
  • Website: https://www.extra.com

Location

  • United Electronics Company
  • PO Box 76688
  • Al Khobar
  • 31952
  • Saudi Arabia

Listings


Biography

United Electronics Company, together with its subsidiaries, engages in the wholesale and retail operations in the Kingdom of Saudi Arabia and internationally. The company operates in two segments, Retail/W...


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.