Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: Saudi Telecommunications keeps sliding: down 6.9% in 7 days 20 June 2018 16:48 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, extended its slide on Wednesday, shedding an additional SAR1.20 (or 1.4%) to trade at SAR86.40. Trading volume was 1.1 times average at the end of the day.

Technical indicators complementing today's significant downtrend:

+ The price sank 5.9% in the last week.

Note

Saudi Telecommunications today is at a discount of 7.5% to the 12-month high of SAR93.40 on 04 Jun, 2018. It is at a premium of 32.7% to the 12-month low of SAR65.10 on 05 Nov, 2017.

Bullish Signals:

The positive 1.35 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The stock has outperformed 86% of the Saudi Arabian market over the past 6 months.

In the last three months the stock has hit a new 52-week high eleven times, pointing to a significant uptrend.

Total Liabilities/EBITDA of 2.6 is comfortably below the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 1.6. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 18.6% in the last 3 years. This is considered superior and suggests a high margin of safety.

The Brand Value represents 7.1% of the estimated Enterprise Value of SAR173.8 billion (US$46.3 billion).

As per the Du Pont analysis, Return on Equity of 16.3% is better than sector average of 10.4%.

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

Undervaluation:

Dividend yield of 3.5% [3.1%]

Return on Equity 16.3% [10.4%]

Return on Assets 9.4% [4.8%]

Return on Capital Employed 14.9% [8.5%]

TODAY'S ALERTS

Afternoon Alert: Saudi Telecommunications decreases 0.6%

20 June 2018 14:38 AST

Saudi Telecommunications (TASI:7010) traded on volume of 1.0 times average so far today while the price decreased 50.0 hallalah (or 0.6%) to trade at SAR87.10.

Morning Alert: Saudi Telecommunications decreases 0.2%

20 June 2018 11:26 AST

Saudi Telecommunications (TASI:7010) traded on volume of 1.0 times average so far today while the price decreased 20.0 hallalah (or 0.2%) to trade at SAR87.40.

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

ISIN: SA0007879543

Source: www.BuySellSignals.com