SASE:5110

Stock Analysis Report

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Market Cap

ر.س107.5b

Last Updated

2021/07/27 17:28 UTC

Data Sources

Company Financials +

Executive Summary

Saudi Electricity Company engages in the generation, transmission, and distribution of electric power for governmental, industrial, agricultural, commercial, and residential consumers in the Kingdom of Saudi Arabia. More Details


Snowflake Analysis

Good value with proven track record and pays a dividend.

Share Price & News

How has Saudi Electricity's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5110 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 5110's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.6%

5110

-0.1%

SA Electric Utilities

0.4%

SA Market


1 Year Return

64.5%

5110

20.1%

SA Electric Utilities

15.1%

SA Market

Return vs Industry: 5110 exceeded the SA Electric Utilities industry which returned 20.1% over the past year.

Return vs Market: 5110 exceeded the SA Market which returned 15.1% over the past year.


Shareholder returns

5110IndustryMarket
7 Day3.6%-0.1%0.4%
30 Day6.8%-1.5%-0.4%
90 Day-4.6%0.4%0.6%
1 Year69.1%64.5%25.3%20.1%19.5%15.1%
3 Year50.4%34.5%4.2%-7.0%41.2%28.1%
5 Year66.6%39.9%7.9%-10.7%101.5%71.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Saudi Electricity undervalued compared to its fair value and its price relative to the market?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 5110 (SAR25.8) is trading below our estimate of fair value (SAR46.82)

Significantly Below Fair Value: 5110 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 5110 is poor value based on its PE Ratio (24.8x) compared to the Asian Electric Utilities industry average (16.6x).

PE vs Market: 5110 is good value based on its PE Ratio (24.8x) compared to the SA market (34.5x).


Price to Earnings Growth Ratio

PEG Ratio: 5110 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: 5110 is good value based on its PB Ratio (0.4x) compared to the XA Electric Utilities industry average (0.9x).


Future Growth

How is Saudi Electricity forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5110's forecast earnings growth (7.4% per year) is below the savings rate (8.8%).

Earnings vs Market: 5110's earnings (7.4% per year) are forecast to grow faster than the SA market (7.1% per year).

High Growth Earnings: 5110's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5110's revenue (0.1% per year) is forecast to grow slower than the SA market (3.4% per year).

High Growth Revenue: 5110's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5110's Return on Equity is forecast to be low in 3 years time (7.3%).


Past Performance

How has Saudi Electricity performed over the past 5 years?

-39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5110 has high quality earnings.

Growing Profit Margin: 5110's current net profit margins (6.1%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: 5110's earnings have declined by 39.1% per year over the past 5 years.

Accelerating Growth: 5110's earnings growth over the past year (896.9%) exceeds its 5-year average (-39.1% per year).

Earnings vs Industry: 5110 earnings growth over the past year (896.9%) exceeded the Electric Utilities industry 3.9%.


Return on Equity

High ROE: 5110's Return on Equity (2.9%) is considered low.


Financial Health

How is Saudi Electricity's financial position?


Financial Position Analysis

Short Term Liabilities: 5110's short term assets (SAR47.0B) do not cover its short term liabilities (SAR72.7B).

Long Term Liabilities: 5110's short term assets (SAR47.0B) do not cover its long term liabilities (SAR164.5B).


Debt to Equity History and Analysis

Debt Level: 5110's debt to equity ratio (45%) is considered high.

Reducing Debt: 5110's debt to equity ratio has reduced from 183.7% to 45% over the past 5 years.

Debt Coverage: 5110's debt is well covered by operating cash flow (28.2%).

Interest Coverage: 5110's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5110's dividend (2.71%) is higher than the bottom 25% of dividend payers in the SA market (1.45%).

High Dividend: 5110's dividend (2.71%) is low compared to the top 25% of dividend payers in the SA market (4.43%).


Stability and Growth of Payments

Stable Dividend: 5110's dividends per share have been stable in the past 10 years.

Growing Dividend: 5110's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.2%), 5110's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 5110's dividends in 3 years are forecast to be well covered by earnings (24.8% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Khaled bin Al Gnoon

no data

Tenure

Engineer Khaled bin Hamad Al Gnoon has been the Chief Executive Officer of Saudi Electricity Company since June 07, 2021. Khaled bin Hamad Al Gnoon holds a Master of Business Administration, Bachelor of El...


Leadership Team

Experienced Management: 5110's management team is seasoned and experienced (5.2 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

Saudi Electricity Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saudi Electricity Company
  • Ticker: 5110
  • Exchange: SASE
  • Founded: 2000
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ر.س107.498b
  • Shares outstanding: 4.17b
  • Website: https://www.se.com.sa

Number of Employees


Location

  • Saudi Electricity Company
  • SEC Building
  • Al-Olaya Street with Rihana Bint Zaid St
  • Riyadh
  • 11416
  • Saudi Arabia

Listings


Biography

Saudi Electricity Company engages in the generation, transmission, and distribution of electric power for governmental, industrial, agricultural, commercial, and residential consumers in the Kingdom of Sau...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 17:28
End of Day Share Price2021/07/27 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.