Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: Saudi Telecommunications decreases gains by 0.1%, led market higher 16 January 2018 16:47 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

This is an end of day Alert, produced after today's Saudi Arabian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Saudi Telecommunications, Saudi Arabia's largest telecommunication company by market capitalisation, has increased 1.9% to trade at SAR70.70 vs. the All Share Index (TASI) which strengthened 48.3 points (or 0.7%) to 7,531.6. Representing a weighting of about 9.0% of the index, the stock accounted for 25.9% of today's gain. The shares have outperformed 80% of the market in the past week. Trading volume was 1.1 times average at the end of the day. Compared with the All Share Index (TASI) which rose 48.3 points (or 0.7%) in the day, this represented a relative price increase of 1.2%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.13 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price climbed 4.1% in the last week and lifted 3.7% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 16.6 [21.7]

+ Dividend yield of 5.7% [5.1%]

+ Return on Assets 8.6% [4.3%]

+ Return on Capital Employed 13.6% [8.7%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 10.6%.

+ Interest cover is less leveraged at 47.7 times.

+ Tobin's Q Ratio is 1.4. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 20% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents an impressive 8.7% of the estimated Enterprise Value of SAR142.7 billion (US$38.1 billion).

Note

Saudi Telecommunications today is at a discount of 9.2% to the 12-month high of SAR77.83 on 02 Jul, 2017. It is at a premium of 14.4% to the 12-month low of SAR61.82 on 14 Feb, 2017.

Bearish Signals:

As per the Du Pont analysis, Return on Equity of 14.3% is lower than sector average of 39.5%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 2.7 [2.2]

Return on Equity 14.3% [39.5%]

TODAY'S ALERTS

Afternoon Alert: Saudi Telecommunications lifts 2.0%, leads market higher

16 January 2018 14:38 AST

Saudi Telecommunications (TASI:7010) has lifted 2.0% to trade at SAR70.80 vs. the All Share Index (TASI) which strengthened 52.4 points (or 0.7%) to 7,535.6. Representing a weighting of about 9.0% of the index, the stock accounted for 25.8% of today's gain. The shares have outperformed 82% of the market in the past week. Trading volume was 2.0 times average so far today.

Morning Alert: Saudi Telecommunications increases 1.0% on strong volume

16 January 2018 11:30 AST

Saudi Telecommunications (TASI:7010) traded on heavy volume of 2.9 times average so far today while the price increased 70.0 hallalah (or 1.0%) to trade at SAR70.10.

RECENT ALERTS

CLOSING UPDATE: Saudi Telecommunications keeps rising: up 2.7% in 3 days

15 January 2018 16:47 AST

Saudi Telecommunications, Saudi Arabia's largest telecommunication company by market capitalisation, extended its gains on Monday, rising an additional 40.0 hallalah (or 0.6%) to trade at SAR69.40. Trading volume was 51% of average at the end of the day.

Afternoon Alert: Saudi Telecommunications increases 1.0% on firm volume

15 January 2018 14:38 AST

Saudi Telecommunications (TASI:7010) traded on heavy volume of 1.3 times average so far today while the price increased 70.0 hallalah (or 1.0%) to trade at SAR69.70.

Saudi Telecommunications (SA:7010; SAU:7010; AB:7010)

ISIN: SA0007879543

Source: www.BuySellSignals.com