Earnings Troubles May Signal Larger Issues for Saudi Research and Media Group (TADAWUL:4210) Shareholders
Apr 10
Saudi Arabian (Tadawul) Telecom Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies8
- 7D-1.0%
- 3M-9.4%
- 1Y-6.6%
- YTD-1.5%
Over the last 7 days, the Telecom industry has dropped 1.0%, driven by a pullback from Saudi Research and Media Group of 6.4%. On the other hand Arabian Contracting Services is actually up 6.4%. However, the industry is down 6.6% over the past year. Looking forward, earnings are forecast to grow by 12% annually.
Sector Valuation and Performance
Has the Saudi Arabian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | ر.س291.4b | ر.س109.0b | ر.س17.1b | 33.2x | 17x | 2.7x |
| Tue, 16 Apr 2024 | ر.س302.3b | ر.س107.5b | ر.س17.8b | 18.4x | 16.9x | 2.8x |
| Thu, 14 Mar 2024 | ر.س308.4b | ر.س108.8b | ر.س18.0b | 18.9x | 17.1x | 2.8x |
| Sat, 10 Feb 2024 | ر.س318.2b | ر.س108.0b | ر.س18.3b | 19.5x | 17.4x | 2.9x |
| Mon, 08 Jan 2024 | ر.س298.7b | ر.س108.0b | ر.س18.3b | 19.2x | 16.3x | 2.8x |
| Wed, 06 Dec 2023 | ر.س263.6b | ر.س104.3b | ر.س18.2b | 15.5x | 14.5x | 2.5x |
| Fri, 03 Nov 2023 | ر.س261.2b | ر.س102.1b | ر.س16.6b | 16x | 15.8x | 2.6x |
| Sun, 01 Oct 2023 | ر.س258.9b | ر.س101.8b | ر.س16.4b | 16.4x | 15.8x | 2.5x |
| Tue, 29 Aug 2023 | ر.س274.7b | ر.س101.8b | ر.س16.4b | 17.1x | 16.7x | 2.7x |
| Thu, 27 Jul 2023 | ر.س298.6b | ر.س99.5b | ر.س16.1b | 19.4x | 18.6x | 3x |
| Sat, 24 Jun 2023 | ر.س291.0b | ر.س99.5b | ر.س16.1b | 19.1x | 18.1x | 2.9x |
| Mon, 22 May 2023 | ر.س290.9b | ر.س99.1b | ر.س15.5b | 22.8x | 18.7x | 2.9x |
| Wed, 19 Apr 2023 | ر.س282.7b | ر.س97.6b | ر.س15.3b | 23.1x | 18.5x | 2.9x |
| Fri, 17 Mar 2023 | ر.س248.4b | ر.س97.0b | ر.س15.1b | 21.6x | 16.5x | 2.6x |
| Sun, 12 Feb 2023 | ر.س237.6b | ر.س95.8b | ر.س14.7b | 20.2x | 16.2x | 2.5x |
| Tue, 10 Jan 2023 | ر.س247.6b | ر.س95.8b | ر.س14.7b | 20.1x | 16.9x | 2.6x |
| Thu, 08 Dec 2022 | ر.س236.4b | ر.س95.8b | ر.س14.7b | 20.7x | 16.1x | 2.5x |
| Sat, 05 Nov 2022 | ر.س257.1b | ر.س95.3b | ر.س14.6b | 21.3x | 17.6x | 2.7x |
| Mon, 03 Oct 2022 | ر.س256.7b | ر.س94.3b | ر.س13.9b | 21.9x | 18.5x | 2.7x |
| Wed, 31 Aug 2022 | ر.س147.2b | ر.س94.4b | ر.س13.8b | 22.6x | 10.6x | 1.6x |
| Fri, 29 Jul 2022 | ر.س259.0b | ر.س92.8b | ر.س13.6b | 24.5x | 19x | 2.8x |
| Sun, 26 Jun 2022 | ر.س252.3b | ر.س92.5b | ر.س13.5b | 23.5x | 18.7x | 2.7x |
| Tue, 24 May 2022 | ر.س278.0b | ر.س92.1b | ر.س13.3b | 26.1x | 20.9x | 3x |
| Thu, 21 Apr 2022 | ر.س300.0b | ر.س90.3b | ر.س13.1b | 30.3x | 22.9x | 3.3x |
| Sat, 19 Mar 2022 | ر.س290.9b | ر.س90.0b | ر.س13.0b | 30.9x | 22.3x | 3.2x |
| Mon, 14 Feb 2022 | ر.س297.8b | ر.س88.8b | ر.س12.9b | n/a | 23.1x | 3.4x |
| Wed, 12 Jan 2022 | ر.س281.6b | ر.س88.7b | ر.س13.0b | 27.4x | 21.7x | 3.2x |
| Fri, 10 Dec 2021 | ر.س278.8b | ر.س88.7b | ر.س13.0b | 25.1x | 21.5x | 3.1x |
| Sun, 07 Nov 2021 | ر.س282.6b | ر.س87.8b | ر.س12.7b | 31.9x | 22.3x | 3.2x |
| Tue, 05 Oct 2021 | ر.س294.7b | ر.س86.6b | ر.س12.5b | 32.2x | 23.7x | 3.4x |
| Thu, 02 Sep 2021 | ر.س316.5b | ر.س86.6b | ر.س12.5b | 32.9x | 25.4x | 3.7x |
| Sat, 31 Jul 2021 | ر.س321.1b | ر.س86.6b | ر.س12.5b | 34.6x | 25.8x | 3.7x |
Price to Earnings Ratio
24.4x
Current Industry PE
- Investors are pessimistic on the Saudi Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 17.0x which is lower than its 3-year average PE of 19.3x.
- The industry is trading close to its 3-year average PS ratio of 2.9x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 12% per year over the last three years.
- Revenues for these companies have grown 8.5% 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 Telecom sector?
| SA Market | -0.48% | |
| Telecom | -1.05% | |
| Entertainment | 0% | |
| Interactive Media and Services | 0% | |
| Wireless Telecom | -0.011% | |
| Telecom Services and Carriers | -1.23% | |
| Media | -1.38% | |
Industry PE
- Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 36.6x.
- Analysts are expecting annual earnings growth of 35.7%, which is higher than its past year's earnings decline of 13.7% per year.
- Investors are most pessimistic about the Telecom Services and Carriers industry, which is trading below its 3-year average of 17.9x.
Forecasted Growth
- Analysts are most optimistic on the Media industry, expecting annual earnings growth of 36% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 4.8% 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 | |
|---|---|---|---|---|---|
| 4071 Arabian Contracting Services | ر.س232.00 | 6.4% +ر.س700.0m | 78.5% | PE36.2x | |
| 4070 Tihama for Advertising Public Relations and Marketing | ر.س16.56 | 0.1% +ر.س800.0k | -13.8% | PS9.8x |