Saudi Telecom (7010.SR)
Communications · Tadawul · Saudi Arabia
Fundamentals
Valuation and ratings
Saudi Telecom trades at SR43.18, which is 27% above the SR31.69 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 70 out of 100, which is a wide moat. 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 14.5 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 Telecom
Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally. The company establishes, manages, operates, and maintains fixed and mobile telecommunication networks, systems, and infrastructures; delivers, provides, maintains, and manages diverse telecommunication and information technology (IT) services; prepares, plans, and studies for technical, financial, and administrative aspects of telecommunication and IT services; expands and develops telecommunication networks, systems, and infrastructure; offers transfer of internet services; and wholesales and retails, imports, exports, purchases, owns, leases, manufactures, promotes, sells, develops, designs, setups, and maintains devices, equipment, and components. It also provides consultancy services; integrated communication and information technology solutions, including telecom, IT services, managed services, cloud services, and internet of things, etc.; information-based systems and technologies; financial and managerial support and other services; development, training, asset management, and other related services; solutions for decision support, business intelligence, and data investment; supply chain and other related services; and digital banking and cybersecurity services. In addition, the company engages in the selling, buying, leasing, managing, developing, and maintenance of real estate properties; and construction, maintenance, and repair of telecommunication, and radar stations and towers. Saudi Telecom Company was founded in 1998 and is headquartered in Riyadh, the Kingdom of Saudi Arabia.
7010.SR passes 4 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 Telecom (7010.SR) undervalued?
Against our discounted cash flow estimate of SR31.69, 7010.SR at SR43.18 is 27% above 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 7010.SR's P/E ratio?
7010.SR trades at 14.5 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.