Etihad Etisalat (SASE:7020) - Share price, News & Analysis

Q: What is the Fair Price of 7020 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7020 (SAR39.8) is trading below our estimate of [[fair value]] (SAR56.42)

7020 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	3/6

7020 Stock Overview

Etihad Etisalat Company, through its subsidiaries, operates mobile wireless telecommunication and fiber optic networks in the Kingdom of Saudi Arabia.

Rewards

Trading at 29.5% below our estimate of its fair value

Earnings are forecast to grow 11.96% per year

Earnings grew by 36.6% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Etihad Etisalat Competitors

Mobile Telecommunications Company Saudi Arabia

SASE:7030

ر.س11.0b

Mobile TeleSystems

MISX:MTSS

₽457.3b

Far EasTone Telecommunications

TWSE:4904

NT$254.8b

Tele2

OM:TEL2 B

kr79.2b

Price History & Performance

Summary of all time highs, changes and price drops for Etihad Etisalat
Historical stock prices
Current Share Price	ر.س39.80
52 Week High	ر.س44.70
52 Week Low	ر.س29.20
Beta	0.52
1 Month Change	14.37%
3 Month Change	0.50%
1 Year Change	24.18%
3 Year Change	59.71%
5 Year Change	120.74%
Change since IPO	-45.17%

Recent News & Updates

Jul 29

We Like These Underlying Return On Capital Trends At Etihad Etisalat (TADAWUL:7020)

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world...

May 24

Etihad Etisalat (TADAWUL:7020) Is Paying Out A Larger Dividend Than Last Year

The board of Etihad Etisalat Company ( TADAWUL:7020 ) has announced that it will be increasing its dividend on the 1st...

May 21

Etihad Etisalat Company's (TADAWUL:7020) Intrinsic Value Is Potentially 37% Above Its Share Price

In this article we are going to estimate the intrinsic value of Etihad Etisalat Company ( TADAWUL:7020 ) by estimating...

Apr 30

Etihad Etisalat (TADAWUL:7020) Is Looking To Continue Growing Its Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Shareholder Returns

	7020	SA Wireless Telecom	SA Market
7D	2.8%	0.7%	2.6%
1Y	24.2%	0.3%	20.7%

Return vs Industry: 7020 exceeded the SA Wireless Telecom industry which returned 0.2% over the past year.

Return vs Market: 7020 exceeded the SA Market which returned 18.2% over the past year.

Price Volatility

Is 7020's price volatile compared to industry and market?
7020 volatility
7020 Average Weekly Movement	4.6%
Wireless Telecom Industry Average Movement	4.1%
Market Average Movement	5.1%
10% most volatile stocks in SA Market	7.9%
10% least volatile stocks in SA Market	3.3%

Stable Share Price: 7020 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 7020's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	n/a	Salman Bin Abdulaziz Al Badran	https://www.mobily.com.sa

Etihad Etisalat Company, through its subsidiaries, operates mobile wireless telecommunication and fiber optic networks in the Kingdom of Saudi Arabia. It manages, installs, and operates telephone networks, terminals, and communication unit systems; and sells and maintains mobile phones and communication unit systems. The company also offers information technology, application, billing and testing support, product marketing, process management, support, call center, and financial services; computer services and related programs and equipment; and consultation services in the telecommunication, computer, software, and media production domains.

Etihad Etisalat Fundamentals Summary

How do Etihad Etisalat's earnings and revenue compare to its market cap?
7020 fundamental statistics
Market Cap	ر.س30.61b
Earnings (TTM)	ر.س1.28b
Revenue (TTM)	ر.س15.21b

23.9x

P/E Ratio

2.0x

P/S Ratio

Is 7020 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7020 income statement (TTM)
Revenue	ر.س15.21b
Cost of Revenue	ر.س6.19b
Gross Profit	ر.س9.02b
Other Expenses	ر.س7.74b
Earnings	ر.س1.28b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.66
Gross Margin	59.31%
Net Profit Margin	8.42%
Debt/Equity Ratio	67.5%

How did 7020 perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

51%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 7020 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 7020?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 7020. This is calculated by dividing 7020's market cap by their current preferred multiple.
What is 7020's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	ر.س30.61b

7020 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/Revenue	2.8x
Enterprise Value/EBITDA	8.3x
PEG Ratio	2x

Price to Earnings Ratio vs Peers

How does 7020's PE Ratio compare to its peers?

7020 PE Ratio vs Peers

The above table shows the PE ratio for 7020 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.3x
7030 Mobile Telecommunications Company Saudi Arabia	31.7x	7.1%	ر.س11.0b
MTSS Mobile TeleSystems	8.7x	22.1%	₽457.3b
4904 Far EasTone Telecommunications	25.5x	7.3%	NT$254.8b
TEL2 B Tele2	15x	-3.2%	kr79.2b
7020 Etihad Etisalat	23.9x	12.0%	ر.س30.6b

Price-To-Earnings vs Peers: 7020 is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does 7020's PE Ratio compare vs other companies in the Asian Wireless Telecom Industry?

Price-To-Earnings vs Industry: 7020 is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the Asian Wireless Telecom industry average (22.3x)

Price to Earnings Ratio vs Fair Ratio

What is 7020'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.

7020 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7020's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 7020 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7020 (SAR39.8) is trading below our estimate of fair value (SAR56.42)

Significantly Below Fair Value: 7020 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 Etihad Etisalat forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7020's forecast earnings growth (12% per year) is above the savings rate (8.9%).

Earnings vs Market: 7020's earnings (12% per year) are forecast to grow faster than the SA market (-0.4% per year).

High Growth Earnings: 7020's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7020's revenue (3.8% per year) is forecast to grow faster than the SA market (-3.5% per year).

High Growth Revenue: 7020's revenue (3.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 7020's Return on Equity is forecast to be low in 3 years time (9.3%).

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Past Performance

How has Etihad Etisalat performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

73.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7020 has high quality earnings.

Growing Profit Margin: 7020's current net profit margins (8.4%) are higher than last year (6.6%).

Past Earnings Growth Analysis

Earnings Trend: 7020 has become profitable over the past 5 years, growing earnings by 73.5% per year.

Accelerating Growth: 7020's earnings growth over the past year (36.6%) is below its 5-year average (73.5% per year).

Earnings vs Industry: 7020 earnings growth over the past year (36.6%) exceeded the Wireless Telecom industry 1.7%.

Return on Equity

High ROE: 7020's Return on Equity (8.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Etihad Etisalat's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7020's short term assets (SAR8.7B) do not cover its short term liabilities (SAR11.2B).

Long Term Liabilities: 7020's short term assets (SAR8.7B) do not cover its long term liabilities (SAR12.1B).

Debt to Equity History and Analysis

Debt Level: 7020's net debt to equity ratio (56.5%) is considered high.

Reducing Debt: 7020's debt to equity ratio has reduced from 101% to 67.5% over the past 5 years.

Debt Coverage: 7020's debt is well covered by operating cash flow (51.1%).

Interest Coverage: 7020's interest payments on its debt are well covered by EBIT (3.9x coverage).

Balance Sheet

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Dividend

What is Etihad Etisalat current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7020's dividend (2.14%) is higher than the bottom 25% of dividend payers in the SA market (1.82%).

High Dividend: 7020's dividend (2.14%) is low compared to the top 25% of dividend payers in the SA market (4.33%).

Stability and Growth of Payments

Stable Dividend: 7020's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7020's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.1%), 7020's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.7%), 7020's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Salman Bin Abdulaziz Al Badran

3.33yrs

Tenure

Eng. Salman Bin Abdulaziz R. Al Badran has been Chief Executive Officer at Etihad Etisalat (Mobily) at Emirates Telecommunications Group Company PJSC d/b/a Etisalat UAE since April 1, 2019. Eng. Al Badran...

Leadership Team

Experienced Management: 7020's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: 7020's board of directors are not considered experienced ( 0.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31