Financials Saudi Telecom Company

Equities

7010

SA0007879543

Integrated Telecommunications Services

Market Closed - Saudi Arabian S.E. Other stock markets 08:20:02 2024-05-23 am EDT			5-day change	1st Jan Change
36.85 ^SAR	-2.51%		-2.77%	-8.79%

May. 21	Criteria to raise its stake in Telefónica to 10%, according to El Confidencial	RE
May. 21	Criteria to raise stake in Telefonica to 10%, El Confidencial says	RE

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	203,600	211,811	224,480	182,648	201,374	188,414	-	-
Enterprise Value (EV) ¹	202,700	204,343	220,780	170,650	199,349	185,740	181,488	176,698
P/E ratio	18.9 x	19.1 x	19.9 x	15 x	15.2 x	14.2 x	13.4 x	12.7 x
Yield	3.93%	3.77%	3.56%	4.37%	3.96%	4.37%	5.03%	5.23%
Capitalization / Revenue	3.74 x	3.59 x	3.54 x	2.71 x	2.78 x	2.47 x	2.35 x	2.25 x
EV / Revenue	3.73 x	3.47 x	3.48 x	2.53 x	2.76 x	2.44 x	2.27 x	2.11 x
EV / EBITDA	9.52 x	9.22 x	9.67 x	6.8 x	8.08 x	7.16 x	6.69 x	6.23 x
EV / FCF	-140 x	11.7 x	73.3 x	9.15 x	15.5 x	15.1 x	14.9 x	12.7 x
FCF Yield	-0.71%	8.56%	1.36%	10.9%	6.45%	6.63%	6.73%	7.85%
Price to Book	3.29 x	3.31 x	3.24 x	2.48 x	2.55 x	2.26 x	2.2 x	2.08 x
Nbr of stocks (in thousands)	5,000,000	4,995,538	4,992,873	4,990,371	4,984,506	4,984,506	-	-
Reference price ²	40.72	42.40	44.96	36.60	40.40	37.80	37.80	37.80
Announcement Date	1/22/20	1/21/21	2/21/22	2/20/23	2/19/24	-	-	-

¹SAR in Million²SAR

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	54,376	58,949	63,417	67,432	72,337	76,151	80,108	83,831
EBITDA ¹	21,281	22,175	22,841	25,079	24,683	25,924	27,145	28,385
EBIT ¹	12,484	12,816	13,128	15,088	14,200	15,047	15,933	16,876
Operating Margin	22.96%	21.74%	20.7%	22.38%	19.63%	19.76%	19.89%	20.13%
Earnings before Tax (EBT) ¹	11,660	12,447	12,635	13,470	14,795	14,488	15,632	17,627
Net income ¹	10,755	11,085	11,311	12,171	13,295	13,308	14,097	14,863
Net margin	19.78%	18.8%	17.84%	18.05%	18.38%	17.48%	17.6%	17.73%
EPS ²	2.152	2.216	2.264	2.440	2.660	2.666	2.817	2.974
Free Cash Flow ¹	-1,448	17,496	3,010	18,653	12,848	12,312	12,216	13,864
FCF margin	-2.66%	29.68%	4.75%	27.66%	17.76%	16.17%	15.25%	16.54%
FCF Conversion (EBITDA)	-	78.9%	13.18%	74.38%	52.05%	47.49%	45%	48.84%
FCF Conversion (Net income)	-	157.83%	26.61%	153.25%	96.64%	92.52%	86.66%	93.28%
Dividend per Share ²	1.600	1.600	1.600	1.600	1.600	1.650	1.902	1.977
Announcement Date	1/22/20	1/21/21	2/21/22	2/20/23	2/19/24	-	-	-

¹SAR in Million²SAR

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2021 S2	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	16,087	-	16,991	16,939	16,468	17,034	-	18,179	18,327	18,106	17,725	-	19,100	19,552	19,189	18,430	-	-
EBITDA ¹	5,767	11,373	6,300	6,204	7,073	5,502	12,575	6,343	5,821	6,952	5,567	12,519	6,474	6,112	7,407	5,675	-	-
EBIT ¹	3,204	-	3,824	3,720	4,576	2,968	-	3,731	3,281	4,338	2,851	-	3,856	3,386	4,681	2,949	-	-
Operating Margin	19.92%	-	22.51%	21.96%	27.79%	17.42%	-	20.52%	17.9%	23.96%	16.09%	-	20.19%	17.32%	24.4%	16%	-	-
Earnings before Tax (EBT)	3,024	-	3,419	3,196	3,896	2,960	-	3,512	3,378	5,330	2,575	-	3,577	-	-	-	-	-
Net income ¹	2,613	-	3,035	2,837	3,541	2,758	-	3,109	3,008	4,904	2,274	-	3,286	2,890	4,185	2,454	-	-
Net margin	16.24%	-	17.86%	16.75%	21.5%	16.19%	-	17.1%	16.41%	27.08%	12.83%	-	17.2%	14.78%	21.81%	13.31%	-	-
EPS ²	0.5240	-	0.6080	0.5680	0.7000	0.5600	-	-	0.6100	0.9800	0.4600	-	0.6600	0.5781	0.8371	0.4908	-	-
Dividend per Share	0.4000	-	0.4000	0.4000	0.4000	0.4000	-	0.4000	0.4000	0.4000	0.4000	-	0.4000	-	0.4000	0.5000	0.5000	0.5000
Announcement Date	2/21/22	2/21/22	4/28/22	8/4/22	10/30/22	2/20/23	2/20/23	5/10/23	7/30/23	10/30/23	2/19/24	2/19/24	5/8/24	-	-	-	-	-

¹SAR in Million²SAR

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	900	7,468	3,699	11,997	2,025	2,674	6,926	11,716
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	-1,448	17,496	3,010	18,653	12,848	12,312	12,216	13,864
ROE (net income / shareholders' equity)	16.9%	17.6%	17.4%	17%	17.4%	16.2%	16.6%	16.8%
ROA (Net income/ Total Assets)	9.42%	9.2%	9.29%	9.19%	8.96%	8.12%	8.73%	8.89%
Assets ¹	114,212	120,447	121,820	132,505	148,451	163,946	161,393	167,105
Book Value Per Share ²	12.40	12.80	13.90	14.80	15.80	16.70	17.20	18.20
Cash Flow per Share ²	1.980	5.670	2.190	5.270	4.480	4.360	4.580	5.360
Capex ¹	11,349	10,841	8,210	7,702	9,569	11,318	11,519	12,676
Capex / Sales	20.87%	18.39%	12.95%	11.42%	13.23%	14.86%	14.38%	15.12%
Announcement Date	1/22/20	1/21/21	2/21/22	2/20/23	2/19/24	-	-	-

¹SAR in Million²SAR

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Saudi Telecom Company

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

37.8 SAR

Average target price

44.51 SAR

Spread / Average Target

+17.74%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Integrated Telecommunications Services

	1st Jan change	Capi.
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DEUTSCHE TELEKOM AG	-0.14%	119B
NIPPON TELEGRAPH AND TELEPHONE CORPORATION	-11.32%	83.01B
CHINA TELECOM CORPORATION LIMITED	+18.72%	72.01B
AMÉRICA MÓVIL, S.A.B. DE C.V.	+4.51%	61.26B
CHARTER COMMUNICATIONS, INC.	-30.85%	39.05B
EMIRATES TELECOMMUNICATIONS GROUP COMPANY	-19.96%	38.07B
BCE INC.	-10.79%	31.19B

Other Integrated Telecommunications Services