Mobile Telecommunications Company Saudi Arabia (TADAWUL:7030) has delivered long-term investors a 39% share price decline over the past five years, even as its earnings per share (EPS) grew at an average of 4.5% annually. This mismatch suggests that earlier market optimism may have been overblown, with expectations failing to align with the company’s actual performance.
While the company has consistently paid dividends, the total shareholder return (TSR) over five years was -12% — better than the share price return due to dividend contributions. Recent performance shows signs of recovery, with a TSR of 1.8% over the past year, hinting at potential improvement.
Analysts note that despite steady earnings, the market has yet to fully reward the company, possibly due to broader conditions or investor caution. With Saudi Arabia’s telecom market evolving rapidly, further monitoring of growth prospects and risks will be crucial.
