- Profit: SABIC reported a profit of 2.18 billion riyals, an 85% increase year-on-year, exceeding the estimate of 859.5 million riyals.
- Revenue: Revenue stood at 35.72 billion riyals, a 4.8% increase year-on-year, surpassing the estimate of 33.86 billion riyals.
- Operating Profit: Operating profit was 2.1 billion riyals, a 28% increase year-on-year, higher than the estimate of 1.7 billion riyals.
- EPS (Earnings Per Share): EPS came in at 0.73 riyals, beating the estimate of 0.44 riyals.
- EBITDA: EBITDA was 5.70 billion riyals.
- Free Cash Flow: Negative free cash flow of 1.44 billion riyals.
- Comments on Capex: SABIC maintains a ‘disciplined approach’ in managing capital expenditure (Capex).
- Capex Spending: Sees 2024 Capex spending at the lower range of $4 billion to $5 billion.
- Market Sentiment: Most petrochemical sectors showed positive sentiment in the second quarter.
- Dividend Commitment: SABIC is committed to keeping stable or growing dividends.
- Analyst Ratings: 9 buy, 6 hold, 2 sell ratings from analysts.
A look at Saudi Basic Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Saudi Basic Industries Corporation (SABIC) shows strong fundamentals for long-term growth and stability. With a top score of 5 in Value, it indicates the company is currently undervalued compared to its actual worth. Alongside a respectable score of 4 in Dividend, investors can expect consistent returns over time. However, the company lags in Growth with a score of 2, suggesting slower expansion prospects. Nevertheless, SABIC’s high scores of 4 in Resilience and Momentum highlight its ability to weather market fluctuations and maintain positive upward momentum, respectively.
SABIC, known for its production of chemicals and steel, appears to be a lucrative investment opportunity for those seeking value and stability. The company’s robust Value and Dividend scores reveal its potential to deliver solid returns to investors while maintaining resilience and momentum in the market. Although Growth may be a bit subdued, SABIC’s diversified product range positions it well for long-term success in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
