Despite a grim 2023, SAUDI ARABIAN MINING (Maaden) stock remains very popular among Saudia investors and top-performing international funds. While you can buy Maaden shares directly, sometimes it is worth considering an ETF with Maaden representation.
Saudi Arabian Mining Company (Ma'aden) is a prominent player in the mining industry, offering diversified mining and mineral-based products and services to various industries. Maaden stock (Tadawul: 1211) has gained significant attention from investors due to its strong financial performance, innovative products and services, and strategic partnerships with major global companies.
A popular choice among investors looking to gain exposure to the mining and minerals sector, Maaden stock has been included in various global indices and exchange-traded funds (ETFs), such as iShares MSCI Saudi Arabic ETF (KSA).
Maaden (Tadawul:1211) - Research and Ratings
- Is Maaden stock undervalued compared to its fair value, analyst forecasts, and its price relative to the market?
- What is the analyst's 12-month Maaden stock price forecast?
- What are Maaden’s future growth expectations?
- How has Maaden stock performed over the past 5 years?
- Should you buy Maaden shares or invest in ETFs with "Tadawul: 1211" representation?
Understanding Maaden Stock: A brief history
Saudi Arabian Mining Company (Ma'aden) was founded in 1997 and is based in Riyadh, the Kingdom of Saudi Arabia. Saudi Arabian Mining Company (Ma'aden), together with its subsidiaries, operates as a mining and metals company in the Kingdom of Saudi Arabia, the Indian Subcontinent, Japan, the United States, Europe, Australia, Brazil, Africa, and GCC.
Ma'aden's product portfolio includes gold, copper, aluminum, phosphate, and industrial minerals, among others. The company operates across various segments, including mining, infrastructure, aluminum, and phosphate. Ma'aden is also actively expanding its operations in other countries, to increase its global footprint and meet the growing demand for its products and services.
The company's continued focus on innovation, sustainability, and strategic partnerships has helped it maintain its position as a leading player in the mining industry.
Some of the most important facts about Saudi Arabian Mining Company (Ma'aden):
- Ma'aden is a mining and metals company based in Saudi Arabia.
- The company was established by royal decree in 1997 to develop Saudi Arabia's minerals sector as the third pillar of Saudi industry.
- Ma'aden is the largest multi-commodity mining and metals company in the Middle East.
- Ma'aden is ranked among the top 10 global mining companies based on market capitalization.
- Ma'aden was wholly owned by the Saudi Government until 2008 when half of its shares were floated on the Saudi Stock Exchange (Tadawul).
- The Public Investment Fund (PIF) increased its shareholding to 65.44% in June 2018.
- Ma'aden has diversified from being a gold-producing company to including phosphate, aluminum, industrial minerals, and copper concentrate operations.
- Ma'aden has built a new mining industrial mega-hub (Ras Al Khair) and a mining city (Wa'ad Al Shamal).
- The company has contributed significantly to the country's non-oil GDP and created thousands of jobs.
- Ma'aden has promoted new downstream industries and supported local communities through health, education, and social initiatives.
- The company has nurtured the development of many small and medium-sized Saudi businesses.
- Ma'aden has contributed to building new infrastructure facilities and attracted significant foreign direct investment and advanced technology.
Maaden shares are distributed among 4 categories:
- Sovereign Wealth Funds: 67.2%
- General Public: 29.4%
- Institutions: 3.33%
- Individual Insiders: 0.00487%
The top 25 shareholders own 70.52 % of the company, while the top 5 shareholders are:
- The Public Investment Fund of The Kingdom of Saudi Arabia: 67.2%
- The Vanguard Group, Inc: 1.32%
- BlackRock, Inc: 1.00%
- Geode Capital Management, LLC: 0.15%
- Northern Trust Global Investments: 0.14%
Maaden Stock (Tadawul:1211) - Fundamental Analysis and Financial Ratings
See the latest Maaden stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions.
Valuation
Is Saudi Arabian Mining stock (Tadawul:1211) undervalued compared to its fair value, analyst forecasts, and price relative to the market?
- Maaden stocks is expensive based on its Price-To-Earnings Ratio (120.5x) compared to the Asian Metals and Mining industry average (17.2x).
- Maaden stocks are expensive based on its Price-To-Earnings Ratio (120.5x) compared to the estimated Fair Price-To-Earnings Ratio (50.7x).
- Maaden stocks (SAR51.5) is trading above analysts' estimate of fair value (SAR10.75).
Future Growth
Saudi Arabian Mining Company (Ma'aden) is forecast to grow earnings and revenue by 30.2% and 6.1% per annum respectively. EPS is expected to grow by 30.1% per annum. Return on equity is forecast to be 9.1% in 3 years.
- Earnings vs Savings Rate: Maaden's forecast earnings growth (30.2% per year) is above the savings rate (14%).
- Earnings vs Market: Maaden's earnings (30.2% per year) are forecast to grow faster than the SA market (6.1% per year).
- High Growth Earnings: Maaden's earnings are expected to grow significantly over the next 3 years.
- Revenue vs Market: Maaden's revenue (6.1% per year) is forecast to grow faster than the SA market (0.4% per year).
- High Growth Revenue: Maaden's revenue is forecast to grow slower than 20% per year.
Past Performance
What is Saudi Arabian Mining's financial position?
- Maaden has high quality earnings.
- Maaden's current net profit margins (5.4%) are lower than last year (23.1%).
- Maaden's earnings have grown significantly by 43.7% per year over the past 5 years.
- Maaden's Maaden's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
- Maaden had negative earnings growth (-83.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-64%).
Financial Health
How is Saudi Arabian Mining's financial position?
- Maaden's short-term assets (SAR29.2B) exceed its short-term liabilities (SAR14.7B).
- Maaden's short-term assets (SAR29.2B) do not cover its long-term liabilities (SAR40.3B).
- Maaden's net debt-to-equity ratio (38.2%) is considered satisfactory.
- Maaden's debt-to-equity ratio has reduced from 150.1% to 65.7% over the past 5 years.
- Maaden's debt is well covered by operating cash flow (20.2%).
- Maaden's interest payments on its debt are well covered by EBIT (2.7x coverage).
Dividend
Saudi Arabian Mining (Ma'aden) does not have a record of paying a dividend.
Maaden Stock Price Forecast
What is the analyst 12-month Tadawul:1211 stock price forecast, and do we have any statistical confidence in the consensus price target from analysts?
According to simplywall.st, the Maaden stock 12-month target price is lower than the current share price.
Wallet Investor site suggests that the price of Maaden stock will decline in 2024 compared to the current price, ending the year at an average price of 43.496 SAR. And it reaches 66.618 SAR in 2028.
There are no 5-year Tadawul:1211 stock price forecasts and price predictions.
Important: When considering Maaden's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose.
Tadawul:1211 Stock - Technical Analysis
The weekly chart shows that Maaden share price has been trading in an upward channel since the beginning of last year “2022”.
However, Maaden share price trading above the long moving averages for the 20-Days & 50-Days closing, shows that the price is still maintaining the bullish trend, It is near the major resistance level at SAR 52.
Long-term traders will look to see if the price is able to continue with the same momentum if it breaches the 52.10 SAR level, searching for the next resistance level at 54.00 SAR.
How to Invest in Maaden Stock (Tadawul:1211)
Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started.
For most people, stock market investing means choosing among these two investment types:
Individual Maaden shares
If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research.
If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day.
Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets.
ETFs with Maaden holdings
Maaden stock (or any single stock, for that matter) can be a very volatile investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies.
If you want an ETF with Maaden representation, you might consider iShares MSCI Saudi Arabia ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management.
The fund can be suitable for Arab and foreign investors who want liquid and diversified exposure to the top 10 companies listed on the Saudi Stock Exchange:
Why invest in Maaden Stock via KSA?
The iShares MSCI Saudi Arabia ETF seeks to track the investment results of a broad-based index composed of Saudi Arabian equities. With net assets of almost $1B, The iShares MSCI Saudi Arabia ETF (KSA) is the largest exchange-traded fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.
- Access to the Saudi Arabian stock market, which has historically been closed to foreign investors.
- Targeted exposure to a country with growth potential. with One click accesses to a virtually untapped investment portfolio, including Saudi Stock Exchange and TASI index exposure.
- Use to seek long-term growth and diversification.
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Sources:
Saudi Arabian Mining Company (SASE:1211) Stock Valuation - Simply Wall St
Saudi Arabian Mining Company (1211.SR) Stock Price, News, Quote & History - Yahoo Finance