The lowest earnings multiple in the Saudi market currently, and the method for calculating the profitability multiple –


The lowest earnings multiple in the Saudi market currently, and the method for calculating the profitability multiple –

The lowest profit margin in the Saudi marketIn the world of economics, finance, and business, there are many important terms that must be known by all persons wishing to engage in experiments in this field, and knowing these terms allows a person to succeed in this field and achieve what he aspires to, and it is considered the secret of success and progress in any field he desires. In it, a person is to know all the mysteries of the path that he will take, and through our topic, we will learn about the lowest profit margin in the Saudi market.

What does earnings multiple mean?

When we want to talk about a topic related to the world of economics, we must first make a general clarification of this topic and what it means, and this matter is related to our topic for today, which is the earnings multiple, through which we will answer the question of what does the profit multiple mean:

  • What is meant by the phrase earnings multiple is the result of dividing the share price in the market by the earnings per share in the company, and this term is considered one of the most important terms in the world of finance and economics that everyone in this field should know.
  • While the earnings per share means the result of dividing the net profit of the company during the financial period by the number of its own shares, but we must pay close attention that the net profit through it we cannot judge the company by success or failure, but rather we must look at the amount per share of profit.
  • The profit multiple is also an important element of the elements on which the decision to invest in a company is taken, as it indicates the ability of the investor to withdraw his own money if he wishes to invest in this company.
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The importance of repeat earnings

The dividend yield is one of the important things that are taken into consideration when making an investment in a company. It is one of the criteria that determine the success of investing in this place. Through our topic for today, we will learn about the importance of the dividend yield through the following points:

  • The term earnings multiple acquires its importance because it is an important element on which the ratio of the commercial share price to its annual profit is known. Earnings Repeater Do a stock valuation.
  • Attention should be paid to the current earnings multiple, if it is less than the calculated multiple, this matter is considered a good signal in order to buy the share, but if the current earnings multiple is greater than the calculated multiple, then this matter means that there is no need to buy this share as its price is very high, and this matter It leads to lower repeat earnings in the long run.
  • Experts in the field of economics, especially stocks, say that one should not rely on earnings multiples ratios to determine the fair price of the stock, and that other auxiliary factors should be considered.

See also: The best investment stock that distributes dividends in Egypt 2023 and the stock prices of the Egyptian Stock Exchange

The lowest profit margin in the Saudi market

The profit multiple is a good thing to look for when you want to invest in any field or company that offers its shares for public subscription, and through our topic for today we will learn about the lowest profit multiple in the Saudi market:

company profit multiplier company Book value multiple company Dividend (%)
Chemanol 6.7 Dar Al-Arkan 0.75 Kind 13.5
Sipchem 7.6 Sera 0.93 positions 7.5
manufacturing 8.4 Northern Cement 0.96 Arabia Cement 7.3
SABIC Agricultural Nutrients 8.9 Arabian shield 1.02 Najran Cement 6.5
Al Yamama Steel 10 The kingdom 1.02 Saudi Cement 6.5
Mbko 10.6 Tabuk Cement 1.1 reconstruction 6.4
c. a. c 10.6 Zain Saudi Arabia 1.12 Yanbu Cement 6.1
glass 11.2 Cisco 1.17 Skill 5.8
Sabek 11.7 the Union 1.18 It flows 5.7
Nayifat 12 easy 1.19 Eastern Cement 5.7
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Method for calculating the multiple earnings per share

The earnings multiple is an important thing to know by anyone who is interested in investing in one of the large companies, which offer their shares for public subscription, and through our topic for today, we will learn about the method of calculating the earnings multiple per share:

  • It is calculated according to the earnings multiple by dividing the share price in the market by the earnings per share for the last four quarters. However, it must be carefully noted that it is not permissible to compare companies which is better based on the profitability multiple. In this case, attention must be paid to the book value because the company may be losing of capital or omitted that profits or losses are mostly exceptional non-recurring.
  • And as we learned from the existing information on the profitability multiple, that the lower the profitability multiple, the better this is in general, while growth companies are not affected by the high profitability multiple if there is good annual growth, and each company has a different circumstance and measurement.
  • In the end, companies with returns that do not have growth should be wary of buying them when their share prices rise and profit growth does not match them.
  • This information was within our topic, the lowest repeat profit in the Saudi market.

See also: The best company that distributes quarterly dividends 2023 in Saudi Arabia and the best investment stock

Financial indicators Saudi market

The Saudi market is one of the markets that is characterized by a strong economy, and this matter is evident through the presence of many companies in the Kingdom of Saudi Arabia that are characterized by success and profits, and through our topic we will learn about the financial indicators of the Saudi market:

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IPO trading index 7191.77 128.57 1.82%
Trading index for large companies 10,028.10 133.65 1.35%
Tadawul index for medium companies 8,965.95 81.41 0.92%
Small business trading index 7,886.79 60.71 0.78%
Main Market Index (TASI) 10246.61 0.00 0.00%
Parallel Market Index (Upper Limit Growth) 18,767.03 0.00 0.00%

market segments

energy 5300.80 0.00 0.00%
Basic materials 6105.88 0.00 0.00%
capital goods 5429.66 0.00 0.00%
Business and professional services 3,493.59 0.00 0.00%
Transport 4,608.52 0.00 0.00%
long term commodities 4378.05 0.00 0.00%
consumer services 3,789.83 0.00 0.00%
Media and entertainment 22,225.95 0.00 0.00%
Retailing of luxury goods 7485.47 0.00 0.00%
Food segmentation 8,597.31 0.00 0.00%
food production 4,584.41 0.00 0.00%
Healthcare 8,823.51 0.00 0.00%
pharmaceutical 3,073.88 0.00 0.00%
Investment and financing 5,863.95 0.00 0.00%
Applications and technology services 35,314.82 0.00 0.00%
Real estate management and development 2644.79 0.00 0.00%
Insurance 5,082.11 0.00 0.00%
Real estate traded funds 3,958.16 0.00 0.00%
banks 11,230.56 0.00 0.00%
Telecommunications 6,362.44 0.00 0.00%
Public utility 6589.25 0.00 0.00%

Earnings multiple of the Saudi market

The Saudi market is one of the markets that enjoys a strong economy, and therefore there is room for success and achieving the largest possible amount of profits, and then these companies start offering their shares for public subscription, and through our topic we will learn about the earnings multiple of the Saudi market:

  • The shares of Chemanol and Sipchem traded at the lowest P/E of 6.7 and 7.6 times, respectively.
  • After that, the Tasnee Company and SABIC Agro-Nutrients come in the ranking by 8.4 times and 8.9 times, respectively.
  • Dar Al-Arkan and Seera recorded the lowest book value at 0.75 and 0.93 times, respectively, followed by Northern Cement and Arabian Shield at 0.96 and 1.02 times, respectively.
  • We mentioned this information within our topic, the lowest profit margin in the Saudi market.

Here we have come with you to the conclusion of our article for today, which bears the title The lowest profit margin in the Saudi marketThrough it, we have identified all the details involved in the issue of repeat profitability.

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