Risk factor
Very high price volatility
Profitability factor
Excellent dividends
About
Headquartered in Riyadh, Saudi Telecom Company (STC) is a leading provider of telecommunications, information, media, and digital payment solutions. Operating both within the Kingdom of Saudi Arabia and internationally, the company, along with its various subsidiaries, delivers a comprehensive suite of services. Its core offerings encompass mobile, fixed-line, internet access, and on-demand television services. STC further extends its reach into international telecommunications and high-speed broadband solutions. Beyond consumer services, the company is actively engaged in the development and operation of critical communications infrastructure, including telecommunication networks and related electrical ventures. STC's commercial activities span both wholesale and retail sectors, covering an extensive array of products. This includes computer systems, various telecommunication devices (fixed and mobile), internet hardware, electrical appliances, advertising materials, and essential spare parts. It also facilitates payment and point-of-sale (POS) devices, alongside offering operator services, sales outlets, service centers, and recharge cards. Furthermore, STC is involved in the complete lifecycle of licensed telecommunications and information technology solutions, from importing and marketing to installation and maintenance. A significant part of its operations includes the ownership, construction, management, leasing, and commercialization of telecommunication towers. The company also provides diverse content and digital media services, computer support, and both initial sale and resale of fixed and mobile connectivity. Its portfolio additionally extends to the maintenance and operation of commercial centers, as well as engaging in real estate development, investment, management, and associated contracting. The company also furnishes consulting, import, and export services. Saudi Telecom Company was established in 1998.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBI
Target Price
The average target price of 7010.SR is 48 and suggests 8% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation