Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally. More Details
No risks detected for 7010 from our risk checks.
Excellent balance sheet established dividend payer.
Share Price & News
How has Saudi Telecom's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 7010 is not significantly more volatile than the rest 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.
7 Day Return
1 Year Return
Return vs Industry: 7010 exceeded the SA Telecom industry which returned 15.9% over the past year.
Return vs Market: 7010 exceeded the SA Market which returned 14.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Saudi Telecom's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StSaudi Telecom Company (TADAWUL:7010) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
1 month ago | Simply Wall StInvestors Met With Slowing Returns on Capital At Saudi Telecom (TADAWUL:7010)
1 month ago | Simply Wall StDoes This Valuation Of Saudi Telecom Company (TADAWUL:7010) Imply Investors Are Overpaying?
Is Saudi Telecom undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 7010 (SAR134) is trading above our estimate of fair value (SAR113.37)
Significantly Below Fair Value: 7010 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 7010 is poor value based on its PE Ratio (24.3x) compared to the Asian Telecom industry average (22.2x).
PE vs Market: 7010 is good value based on its PE Ratio (24.3x) compared to the SA market (33.9x).
Price to Earnings Growth Ratio
PEG Ratio: 7010 is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: 7010 is overvalued based on its PB Ratio (4.1x) compared to the XA Telecom industry average (2.2x).
How is Saudi Telecom forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7010's forecast earnings growth (7.4% per year) is below the savings rate (8.8%).
Earnings vs Market: 7010's earnings (7.4% per year) are forecast to grow faster than the SA market (6.8% 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 (3.3% 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 (17.6%).
How has Saudi Telecom performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7010 has high quality earnings.
Growing Profit Margin: 7010's current net profit margins (18.2%) are lower than last year (19.7%).
Past Earnings Growth Analysis
Earnings Trend: 7010's earnings have grown by 5.1% per year over the past 5 years.
Accelerating Growth: 7010's earnings growth over the past year (1.9%) is below its 5-year average (5.1% per year).
Earnings vs Industry: 7010 earnings growth over the past year (1.9%) underperformed the Telecom industry 14%.
Return on Equity
High ROE: 7010's Return on Equity (17%) is considered low.
How is Saudi Telecom's financial position?
Financial Position Analysis
Short Term Liabilities: 7010's short term assets (SAR49.0B) exceed its short term liabilities (SAR35.3B).
Long Term Liabilities: 7010's short term assets (SAR49.0B) exceed its long term liabilities (SAR22.9B).
Debt to Equity History and Analysis
Debt Level: 7010's debt to equity ratio (13.3%) is considered satisfactory.
Reducing Debt: 7010's debt to equity ratio has increased from 12.2% to 13.3% over the past 5 years.
Debt Coverage: 7010's debt is well covered by operating cash flow (305%).
Interest Coverage: 7010's interest payments on its debt are well covered by EBIT (5760.4x coverage).
What is Saudi Telecom current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 7010's dividend (2.99%) is higher than the bottom 25% of dividend payers in the SA market (1.46%).
High Dividend: 7010's dividend (2.99%) is low compared to the top 25% of dividend payers in the SA market (4.32%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (72.5%), 7010's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 7010's dividends in 3 years are forecast to be covered by earnings (85.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eng. Olayan Mohammed Alwetaid serves as the Chief Executive Officer of Saudi Telecom Company since March 28, 2021 and served as Senior Vice President of Consumer Business Unit at Saudi Telecom Company. Eng...
Experienced Management: 7010's management team is considered experienced (2.5 years average tenure).
Experienced Board: 7010's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Saudi Telecom Company's company bio, employee growth, exchange listings and data sources
- Name: Saudi Telecom Company
- Ticker: 7010
- Exchange: SASE
- Founded: 1998
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: ر.س267.600b
- Shares outstanding: 2.00b
- Website: https://www.stc.com.sa
- Saudi Telecom Company
- Building 17
- Prince Moqran Ibn Abdulaziz
- Saudi Arabia
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 m...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/30 14:05|
|End of Day Share Price||2021/07/29 00:00|
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.