Optimistic Investors Push Edarat Communication and Information Technology Co. (TADAWUL:9557) Shares Up 27% But Growth Is Lacking
May 09
Saudi Arabian (Tadawul) Tech Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies14
- 7D-6.8%
- 3M-16.0%
- 1Y39.9%
- YTD-0.2%
Over the last 7 days, the Tech industry has dropped 6.8%, driven by Arabian Internet and Communication Services declining 11%. On the other hand Sure Global Tech is actually up 6.4%. This takes the industry's 12 month performance to a gain of 40%. Looking forward, earnings are forecast to grow by 15% annually.
Sector Valuation and Performance
Has the Saudi Arabian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | ر.س116.0b | ر.س20.8b | ر.س2.8b | 36x | 40.8x | 5.6x |
| Tue, 16 Apr 2024 | ر.س134.2b | ر.س20.7b | ر.س2.8b | 38x | 48.1x | 6.5x |
| Thu, 14 Mar 2024 | ر.س136.0b | ر.س20.6b | ر.س2.9b | 37.9x | 47.7x | 6.6x |
| Sat, 10 Feb 2024 | ر.س127.9b | ر.س19.8b | ر.س2.8b | 34.4x | 46.3x | 6.5x |
| Mon, 08 Jan 2024 | ر.س117.0b | ر.س19.8b | ر.س2.8b | 30.7x | 42.3x | 5.9x |
| Wed, 06 Dec 2023 | ر.س107.6b | ر.س19.8b | ر.س2.8b | 28.1x | 38.9x | 5.4x |
| Fri, 03 Nov 2023 | ر.س100.8b | ر.س18.4b | ر.س2.7b | 26.9x | 37.1x | 5.5x |
| Sun, 01 Oct 2023 | ر.س109.7b | ر.س18.4b | ر.س2.7b | 28.7x | 40.4x | 6x |
| Tue, 29 Aug 2023 | ر.س120.2b | ر.س18.4b | ر.س2.7b | 28.4x | 44.2x | 6.6x |
| Thu, 27 Jul 2023 | ر.س111.8b | ر.س17.2b | ر.س2.4b | 31x | 45.6x | 6.5x |
| Sat, 24 Jun 2023 | ر.س95.3b | ر.س17.2b | ر.س2.4b | 32.5x | 38.9x | 5.5x |
| Mon, 22 May 2023 | ر.س82.8b | ر.س16.8b | ر.س2.4b | 26x | 34.4x | 4.9x |
| Wed, 19 Apr 2023 | ر.س77.0b | ر.س16.2b | ر.س2.3b | 28.7x | 33.2x | 4.8x |
| Fri, 17 Mar 2023 | ر.س68.5b | ر.س16.1b | ر.س2.2b | 26.2x | 31x | 4.3x |
| Sun, 12 Feb 2023 | ر.س67.0b | ر.س15.8b | ر.س2.1b | 28.9x | 31.8x | 4.2x |
| Tue, 10 Jan 2023 | ر.س62.5b | ر.س15.8b | ر.س2.1b | 27.5x | 30.1x | 4x |
| Thu, 08 Dec 2022 | ر.س61.5b | ر.س15.8b | ر.س2.1b | 26.7x | 29.7x | 3.9x |
| Sat, 05 Nov 2022 | ر.س62.0b | ر.س14.7b | ر.س1.8b | 30x | 33.6x | 4.2x |
| Mon, 03 Oct 2022 | ر.س58.1b | ر.س14.4b | ر.س1.8b | 31x | 32.3x | 4x |
| Wed, 31 Aug 2022 | ر.س64.6b | ر.س14.3b | ر.س1.8b | 35.9x | 36.1x | 4.5x |
| Fri, 29 Jul 2022 | ر.س55.6b | ر.س13.5b | ر.س1.7b | 38x | 33.3x | 4.1x |
| Sun, 26 Jun 2022 | ر.س48.8b | ر.س13.5b | ر.س1.7b | 32.6x | 29.3x | 3.6x |
| Tue, 24 May 2022 | ر.س51.7b | ر.س13.3b | ر.س1.6b | 34.4x | 31.4x | 3.9x |
| Thu, 21 Apr 2022 | ر.س49.4b | ر.س12.5b | ر.س1.5b | 32.8x | 33.1x | 4x |
| Sat, 19 Mar 2022 | ر.س45.5b | ر.س12.8b | ر.س1.5b | 29.5x | 30.1x | 3.6x |
| Mon, 14 Feb 2022 | ر.س30.3b | ر.س8.5b | ر.س866.5m | n/a | 34.9x | 3.6x |
| Wed, 12 Jan 2022 | ر.س28.9b | ر.س8.5b | ر.س866.5m | 55.1x | 33.3x | 3.4x |
| Fri, 10 Dec 2021 | ر.س26.7b | ر.س8.5b | ر.س866.5m | 49.8x | 30.9x | 3.1x |
| Sun, 07 Nov 2021 | ر.س29.0b | ر.س8.5b | ر.س866.5m | 52.5x | 33.5x | 3.4x |
| Tue, 05 Oct 2021 | ر.س5.8b | ر.س975.0m | ر.س72.2m | 54.6x | 79.8x | 5.9x |
| Thu, 02 Sep 2021 | ر.س5.9b | ر.س975.0m | ر.س72.2m | 57.3x | 82x | 6.1x |
| Sat, 31 Jul 2021 | ر.س5.4b | ر.س975.0m | ر.س72.2m | 50.9x | 74.4x | 5.5x |
Price to Earnings Ratio
49x
Current Industry PE
- Investors are relatively neutral on the Saudi Information Technology industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 40.1x.
- The 3-year average PS ratio of 4.8x is lower than the industry's current PS ratio of 5.6x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 236% per year over the last three years.
- Revenues for these companies have grown 172% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Saudi Arabian Tech sector?
| SA Market | -0.48% | |
| Tech | -6.83% | |
| Communications | 0% | |
| Tech Hardware | 0% | |
| Electronic Equipment and Components | 0% | |
| Semiconductors | 0% | |
| Software | -2.90% | |
| IT | -6.86% | |
Industry PE
- Investors are most optimistic about the IT industry, which is trading close to its 3-year average PE ratio of 36.8x.
- Analysts are expecting annual earnings growth of 15.1%, which is higher than its past year's earnings growth of 1.4% per year.
Forecasted Growth
- Analysts are most optimistic on the IT industry, expecting annual earnings growth of 15% over the next 5 years.
- This is better than its past earnings growth rate of 1.4% per year.
- In contrast, the IT industry is expected to see its earnings grow by 15% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 9550 Sure Global Tech | ر.س85.40 | 6.4% +ر.س39.2m | 105.0% | n/a | |
| 9557 Edarat Communication and Information Technology | ر.س341.00 | 1.8% +ر.س15.1m | 196.5% | PE49.5x | |
| 9524 Advance International Company for Communication and Information Technology | ر.س5.19 | 4.6% +ر.س14.7m | 60.1% | PE49.5x |
