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7010

Saudi Telecom SASE:7010 Stock Report

Last Price

ر.س103.80

Market Cap

ر.س207.1b

7D

1.2%

1Y

-23.8%

Updated

12 Aug, 2022

Data

Company Financials +
7010 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends4/6

7010 Stock Overview

Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally.

Saudi Telecom Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Saudi Telecom
Historical stock prices
Current Share Priceر.س103.80
52 Week Highر.س138.60
52 Week Lowر.س95.20
Beta0.24
1 Month Change4.74%
3 Month Change-5.64%
1 Year Change-23.79%
3 Year Change-5.64%
5 Year Change40.84%
Change since IPO237.15%

Recent News & Updates

Aug 06
Saudi Telecom (TADAWUL:7010) Will Pay A Dividend Of SAR1.00

Saudi Telecom (TADAWUL:7010) Will Pay A Dividend Of SAR1.00

The board of Saudi Telecom Company ( TADAWUL:7010 ) has announced that it will pay a dividend on the 25th of August...

Jun 20
Here's What To Make Of Saudi Telecom's (TADAWUL:7010) Decelerating Rates Of Return

Here's What To Make Of Saudi Telecom's (TADAWUL:7010) Decelerating Rates Of Return

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

May 29
Estimating The Intrinsic Value Of Saudi Telecom Company (TADAWUL:7010)

Estimating The Intrinsic Value Of Saudi Telecom Company (TADAWUL:7010)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Saudi Telecom Company...

Shareholder Returns

7010SA TelecomSA Market
7D1.2%0.9%2.6%
1Y-23.8%5.2%20.7%

Return vs Industry: 7010 underperformed the SA Telecom industry which returned 5.2% over the past year.

Return vs Market: 7010 underperformed the SA Market which returned 20.7% over the past year.

Price Volatility

Is 7010's price volatile compared to industry and market?
7010 volatility
7010 Average Weekly Movement3.3%
Telecom Industry Average Movement4.6%
Market Average Movement5.1%
10% most volatile stocks in SA Market7.9%
10% least volatile stocks in SA Market3.3%

Stable Share Price: 7010 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 7010's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998n/an/ahttps://www.stc.com.sa

Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally. The company offers mobile, landline, internet, and TV on demand services, as well as international telecommunication, broadband, and other related services; and operates communications projects. It is also involved in the electrical business and telecommunication networks; retail and wholesale trade of computer systems and devices, fixed and mobile telecommunication, internet equipment, advertising and publicity material, spare parts, electrical equipment, payment devices, point-of-sale devices, telecom operator services, telecom sales, and service centers; and wholesale and retail of telecommunications equipment and electrical appliances, and recharge card services.

Saudi Telecom Fundamentals Summary

How do Saudi Telecom's earnings and revenue compare to its market cap?
7010 fundamental statistics
Market Capر.س207.08b
Earnings (TTM)ر.س11.41b
Revenue (TTM)ر.س65.75b

18.1x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7010 income statement (TTM)
Revenueر.س65.75b
Cost of Revenueر.س30.54b
Gross Profitر.س35.21b
Other Expensesر.س23.80b
Earningsر.س11.41b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)5.72
Gross Margin53.55%
Net Profit Margin17.35%
Debt/Equity Ratio13.8%

How did 7010 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

70%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 7010 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7010?

Other financial metrics that can be useful for relative valuation.

7010 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA9.6x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does 7010's PE Ratio compare to its peers?

7010 PE Ratio vs Peers
The above table shows the PE ratio for 7010 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.6x
728 China Telecom
8.4x14.3%HK$378.1b
ETISALAT Emirates Telecommunications Group Company PJSC
25.9x4.7%د.إ244.0b
7020 Etihad Etisalat
23.9x8.9%ر.س30.6b
BCE BCE
20.5x7.7%CA$58.6b
7010 Saudi Telecom
18.1x6.1%ر.س207.1b

Price-To-Earnings vs Peers: 7010 is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (19.6x).


Price to Earnings Ratio vs Industry

How does 7010's PE Ratio compare vs other companies in the Asian Telecom Industry?

Price-To-Earnings vs Industry: 7010 is good value based on its Price-To-Earnings Ratio (18.1x) compared to the Asian Telecom industry average (18.6x)


Price to Earnings Ratio vs Fair Ratio

What is 7010's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7010 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7010's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 7010 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7010 (SAR103.8) is trading below our estimate of fair value (SAR156.37)

Significantly Below Fair Value: 7010 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7010's forecast earnings growth (6.1% per year) is below the savings rate (8.9%).

Earnings vs Market: 7010's earnings (6.1% per year) are forecast to grow faster than the SA market (-0.5% per year).

High Growth Earnings: 7010's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7010's revenue (4% per year) is forecast to grow faster than the SA market (-3.5% per year).

High Growth Revenue: 7010'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: 7010's Return on Equity is forecast to be low in 3 years time (17.4%).


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Past Performance

How has Saudi Telecom performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7010 has high quality earnings.

Growing Profit Margin: 7010's current net profit margins (17.4%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: 7010's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: 7010's earnings growth over the past year (2.5%) is below its 5-year average (3.2% per year).

Earnings vs Industry: 7010 earnings growth over the past year (2.5%) underperformed the Telecom industry 16.1%.


Return on Equity

High ROE: 7010's Return on Equity (15.9%) is considered low.


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Financial Health

How is Saudi Telecom's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7010's short term assets (SAR56.5B) exceed its short term liabilities (SAR34.9B).

Long Term Liabilities: 7010's short term assets (SAR56.5B) exceed its long term liabilities (SAR22.9B).


Debt to Equity History and Analysis

Debt Level: 7010 has more cash than its total debt.

Reducing Debt: 7010's debt to equity ratio has increased from 8.6% to 13.8% over the past 5 years.

Debt Coverage: 7010's debt is well covered by operating cash flow (142.7%).

Interest Coverage: 7010 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Saudi Telecom current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7010's dividend (3.85%) is higher than the bottom 25% of dividend payers in the SA market (1.84%).

High Dividend: 7010's dividend (3.85%) is low compared to the top 25% of dividend payers in the SA market (4.3%).


Stability and Growth of Payments

Stable Dividend: 7010's dividends per share have been stable in the past 10 years.

Growing Dividend: 7010's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (70%), 7010's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (142.7%), 7010's dividend payments are not well covered by cash flows.


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Management

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

1.3yrs

Average board tenure


CEO

Saudi Telecom has no CEO, or we have no data on them.


Board Members

Experienced Board: 7010's board of directors are not considered experienced ( 1.3 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

Saudi Telecom Company's employee growth, exchange listings and data sources


Key Information

  • Name: Saudi Telecom Company
  • Ticker: 7010
  • Exchange: SASE
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: ر.س207.081b
  • Shares outstanding: 2.00b
  • Website: https://www.stc.com.sa

Location

  • Saudi Telecom Company
  • Building 17
  • Prince Moqran Ibn Abdulaziz
  • Riyadh
  • 12464
  • Saudi Arabia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.