Saudi National Bank (1180.SR)
Financials · Tadawul · Saudi Arabia
Fundamentals
Valuation and ratings
Saudi National Bank trades at SR38.14, which is 121% below the SR84.44 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 53 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 9.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Saudi National Bank
The Saudi National Bank, through its subsidiaries, provides banking and investment management services in the Kingdom of Saudi Arabia and internationally. The company offers current, Al Wessam, gold, commercial enterprise, and corporate accounts; Shariah-compliant financing solutions, financial solutions to MSMEs, point-of-sale Merchant Financing, personal and lease finance, and residential finance; and corporate finance solutions, including Ijara, Musharaka financing, Project and Structured Finance, Syndications and Placements, and Tawarruq. It also provides deposit, prepaid, and credit cards; cash management services, such as dividend distribution, payroll, escrow account management, deposit, and debit services; guarantees, fleet leasing, investment products, and digital banking; treasury services, such as foreign currency exchange, money markets, and shariah compliant products; payments and transfers; and trade finance, including documentary collection, export and import letter of credit, letter of guarantees, documentary collection, letter of credit program for Saudi industrial development fund clients. In addition, it operates as a private equity fund; keeps and manages title deeds and collateralized real estate properties; trades in derivatives and repos/reverse repos activities; sells POS equipment and devices; manages liquidity, market, and credit risks; and provides recruitment services, safety deposit boxes, private banking services, wealth management, asset management, investment banking, and shares brokerage services, as well as correspondent banking products and services, including money market and foreign exchange. The company was formerly known as The National Commercial Bank and changed its name to The Saudi National Bank in April 2021. The Saudi National Bank was founded in 1950 and is headquartered in Riyadh, the Kingdom of Saudi Arabia.
1180.SR passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Saudi National Bank (1180.SR) undervalued?
Against our discounted cash flow estimate of SR84.44, 1180.SR at SR38.14 is 121% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 1180.SR's P/E ratio?
1180.SR trades at 9.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.