Optimistic Investors Push Edarat Communication and Information Technology Co. (TADAWUL:9557) Shares Up 27% But Growth Is Lacking
May 09
Saudi Arabian (Tadawul) IT Industry Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies12
- 7D-6.9%
- 3M-16.0%
- 1Y40.5%
- YTD-0.2%
Over the last 7 days, the IT industry has dropped 6.9%, driven by a pullback from Arabian Internet and Communication Services of 11%. In contrast, Sure Global Tech has gained 6.4%. Over the past 12 months, the industry was up 41%. As for the next few years, earnings are expected to grow by 15% per annum.
Industry Valuation and Performance
Has the Saudi Arabian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | ر.س115.2b | ر.س20.8b | ر.س2.9b | 36x | 40.4x | 5.5x |
| Tue, 16 Apr 2024 | ر.س133.3b | ر.س20.6b | ر.س2.8b | 38x | 47.6x | 6.5x |
| Thu, 14 Mar 2024 | ر.س135.1b | ر.س20.5b | ر.س2.9b | 37.9x | 47.1x | 6.6x |
| Sat, 10 Feb 2024 | ر.س127.1b | ر.س19.7b | ر.س2.8b | 34.4x | 45.6x | 6.4x |
| Mon, 08 Jan 2024 | ر.س116.1b | ر.س19.7b | ر.س2.8b | 30.7x | 41.7x | 5.9x |
| Wed, 06 Dec 2023 | ر.س106.7b | ر.س19.7b | ر.س2.8b | 28.1x | 38.3x | 5.4x |
| Fri, 03 Nov 2023 | ر.س100.1b | ر.س18.4b | ر.س2.7b | 26.9x | 36.7x | 5.4x |
| Sun, 01 Oct 2023 | ر.س109.0b | ر.س18.4b | ر.س2.7b | 28.7x | 39.9x | 5.9x |
| Tue, 29 Aug 2023 | ر.س119.4b | ر.س18.3b | ر.س2.7b | 28.4x | 43.6x | 6.5x |
| Thu, 27 Jul 2023 | ر.س110.8b | ر.س17.1b | ر.س2.5b | 31x | 45x | 6.5x |
| Sat, 24 Jun 2023 | ر.س94.3b | ر.س17.1b | ر.س2.5b | 32.5x | 38.3x | 5.5x |
| Mon, 22 May 2023 | ر.س81.9b | ر.س16.8b | ر.س2.4b | 26x | 33.9x | 4.9x |
| Wed, 19 Apr 2023 | ر.س76.0b | ر.س16.1b | ر.س2.3b | 28.7x | 32.7x | 4.7x |
| Fri, 17 Mar 2023 | ر.س67.9b | ر.س16.0b | ر.س2.2b | 26x | 30.9x | 4.2x |
| Sun, 12 Feb 2023 | ر.س66.3b | ر.س15.8b | ر.س2.1b | 25.2x | 31.6x | 4.2x |
| Tue, 10 Jan 2023 | ر.س61.8b | ر.س15.7b | ر.س2.1b | 25.8x | 29.9x | 3.9x |
| Thu, 08 Dec 2022 | ر.س60.9b | ر.س15.7b | ر.س2.1b | 26x | 29.5x | 3.9x |
| Sat, 05 Nov 2022 | ر.س61.2b | ر.س14.6b | ر.س1.8b | 28.9x | 33.4x | 4.2x |
| Mon, 03 Oct 2022 | ر.س57.3b | ر.س14.3b | ر.س1.8b | 31x | 32x | 4x |
| Wed, 31 Aug 2022 | ر.س63.7b | ر.س14.3b | ر.س1.8b | 35.9x | 35.8x | 4.5x |
| Fri, 29 Jul 2022 | ر.س54.9b | ر.س13.5b | ر.س1.7b | 36.5x | 33.3x | 4.1x |
| Sun, 26 Jun 2022 | ر.س48.0b | ر.س13.4b | ر.س1.6b | 31.2x | 29.2x | 3.6x |
| Tue, 24 May 2022 | ر.س50.0b | ر.س13.3b | ر.س1.6b | 32.5x | 30.7x | 3.8x |
| Thu, 21 Apr 2022 | ر.س47.4b | ر.س12.4b | ر.س1.5b | 32.3x | 32.2x | 3.8x |
| Sat, 19 Mar 2022 | ر.س43.5b | ر.س12.8b | ر.س1.5b | 29x | 29.3x | 3.4x |
| Mon, 14 Feb 2022 | ر.س28.2b | ر.س8.5b | ر.س864.1m | n/a | 32.7x | 3.3x |
| Wed, 12 Jan 2022 | ر.س26.9b | ر.س8.5b | ر.س864.1m | 42x | 31.1x | 3.2x |
| Fri, 10 Dec 2021 | ر.س24.9b | ر.س8.5b | ر.س864.1m | 38.4x | 28.8x | 2.9x |
| Sun, 07 Nov 2021 | ر.س27.4b | ر.س8.5b | ر.س864.1m | 41.1x | 31.7x | 3.2x |
| Tue, 05 Oct 2021 | ر.س4.1b | ر.س940.4m | ر.س75.5m | 54.6x | 54.6x | 4.4x |
| Thu, 02 Sep 2021 | ر.س4.3b | ر.س940.4m | ر.س75.5m | 57.3x | 57.3x | 4.6x |
| Sat, 31 Jul 2021 | ر.س3.8b | ر.س940.4m | ر.س75.5m | 50.9x | 50.9x | 4.1x |
Price to Earnings Ratio
30.6x
Current Industry PE
- Investors are optimistic on the Saudi IT industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 40.4x which is higher than its 3-year average PE of 36.8x.
- The 3-year average PS ratio of 4.5x is lower than the industry's current PS ratio of 5.5x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 217% per year over the last three years.
- Revenues for these companies have grown 174% 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 industry?
| SA Market | -0.48% | |
| Tech | -6.83% | |
| IT | -6.86% | |
| Internet Services and Infrastructure | 0% | |
| Data Processing Services | 0% | |
| IT Consulting | -6.86% | |
Industry PE
- Investors are most optimistic about the IT Consulting 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.
- Investors are most pessimistic about the IT Consulting industry, which is trading close to its 3-year average of 36.8x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting 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 Consulting 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.س87.10 | 3.8% +ر.س24.6m | 110.7% | n/a | |
| 9557 Edarat Communication and Information Technology | ر.س341.00 | 1.5% +ر.س12.6m | 197.8% | PE49.5x | |
| 9524 Advance International Company for Communication and Information Technology | ر.س5.05 | 1.0% +ر.س3.2m | 59.6% | PE48.1x | |
| 9558 Alqemam for Computer Systems | ر.س81.50 | 0.2% +ر.س600.0k | 19.9% | PE16.8x |
