stc (Saudi Telecom Company)الاتصالات السعودية
- Price
- 43.42 SAR
- Fair value
- 33.99 SAR
- Discount to fair value
- −28%
- Mkt cap
- 216.66B
- P/E
- 14.6×
- P/B
- 2.60×
- EV
- 220.73B
- Div yield
- 7.37%
- ROE
- 17.8%
- Net margin
- 19.1%
Current price43.42SAR
Fair value (est., median)33.99SAR
UndervaluedFair valueOvervalued
+27.8% above fair valueWould need to fall ~21.7% to reach fair value.
Median ofDCF 23.14DDM 46.47Graham 33.99Residual Income 34.26Earnings Power 29.25
Health Check
48.3
Overall / 100
Good (66+)Caution (40–65)Risk (<40)
Rewards
- Strong return on equity (17.8%).
- Healthy balance sheet.
Risks
- Trades 27.8% above estimated fair value.
- Low fair-value confidence — methods disagree or data is thin.
- Dividend payout looks stretched.
Scores are computed automatically from the real financial statements (Value from fair value; the rest from growth, profitability, balance sheet and dividends). A decision aid, not investment advice.
Price, corporate actions & news
Demo series
D — DividendS — Split▲ good · ▼ bad newstap a marker for details
Deep dive — stc
Saudi Telecom Company (stc) is the largest telecom and digital-services group in the Middle East by revenue, providing mobile, fixed, fibre, data and ICT/cloud services across Saudi Arabia and the region, alongside fintech (stc pay / stc bank), cybersecurity, the TAWAL towers business and digital media. Majority-owned by the Public Investment Fund and listed on the Saudi Exchange (Tadawul: 7010).
stc files in SAR thousands; figures here are shown in SAR millions. FY2024 net profit includes a ~SAR 12.9bn one-off gain on the partial sale of subsidiaries (discontinued operations), so it is not comparable to the underlying years. Gross profit, operating profit and total assets are as-reported line items Yahoo doesn't carry.
Captured annual figures (all years)
Hand-extracted from audited annual reports — curated for this company
| Line item | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 51,786.8 | 55,662.1 | 59,362.6 | 45,604.6 | 45,825.6 | 50,650.6 | 51,832.7 | 50,746.7 | 51,963.2 | 54,367.5 | 58,953.3 | 63,417 | 67,431.5 | 71,777.2 | 75,893.4 | 77,818.7 |
| Gross profit | 30,322.6 | 31,328.3 | 33,589.3 | 27,413.2 | 28,155.6 | 30,344.8 | 28,772.5 | 29,491.2 | 30,546.3 | 32,391.2 | 33,954.4 | 33,794 | — | 34,740.1 | 37,300.4 | — |
| Operating profit | 10,978.3 | 11,171 | 11,208.2 | 10,988.7 | 11,631.6 | 11,859.3 | 9,900.7 | 11,085 | 12,245.2 | 12,480.4 | 12,731.1 | 13,127.8 | — | 13,161.3 | 14,425.6 | — |
| Net profit | 9,436.3 | 7,728.7 | 7,276 | 9,897.1 | 10,959.5 | 9,258.4 | 8,531.7 | 10,133.2 | 10,779.8 | 10,664.7 | 10,994.9 | 11,311.3 | 12,170.5 | 13,295.4 | 24,688.7 | 14,828 |
| EPS (SAR) | 4.72 | 3.86 | 3.64 | 4.95 | 5.48 | 4.63 | 4.27 | 5.07 | 5.39 | 5.33 | 5.50 | 5.66 | 2.43 | 2.66 | 4.94 | 2.97 |
| Total assets | 110,780.9 | 111,401.8 | 117,904.3 | 87,359.8 | 90,869.4 | 96,661.1 | 101,606.5 | 108,112.8 | 111,948.6 | 118,326.3 | 121,972.1 | 127,779.4 | — | 159,645.9 | 160,638.1 | — |
| Total equity | 44,995.9 | 46,908.3 | 51,337.1 | 56,229.6 | 60,422.3 | 60,541.3 | 59,740.4 | 62,241.4 | 65,513.7 | 61,762.6 | 63,945.8 | 69,270.5 | 73,499.5 | 78,984.9 | 89,416.6 | 83,413.6 |
| Cash & equivalents | 6,050.7 | 6,588.6 | 5,120.2 | 960.1 | 5,467.1 | 4,504 | 3,594.5 | 2,567 | 8,153.9 | 8,031 | 9,004.3 | 8,281.3 | 17,794.4 | 13,371.3 | 15,643.4 | 13,376.1 |
| Total borrowings | 30,188.1 | 29,931.4 | 30,841.5 | 8,537.1 | 9,799.3 | 7,647.2 | 5,881.3 | 4,653.7 | 4,286 | 9,312.8 | 8,956.1 | 8,716.2 | — | 21,957.5 | 15,131.7 | — |
| Operating cash flow | 18,988.4 | 26,488.4 | 12,026.4 | 19,635.5 | 18,780.7 | 20,715.6 | 18,576.1 | 16,700.2 | 19,014.2 | 9,920.6 | 28,324.7 | 11,220.2 | 26,354.4 | 22,417.6 | 19,885.3 | 18,283.2 |
All figures in millions of riyal; EPS in riyal per share. FY2010–FY2021 are as-reported from stc's own audited annual statements; FY2023–FY2024 from the audited PDF; FY2022 & FY2025 headline items from Yahoo (so gross/operating profit, total assets & as-reported borrowings are blank for those two). Caveats: FY2010–FY2016 are Saudi GAAP (SOCPA), FY2017+ IFRS. In FY2013 stc moved its international operations to the equity method (FY2012 revenue was restated 59,363→44,745 on the new basis), so pre-2013 figures are on the old full-consolidation basis and aren't directly comparable. EPS for FY2010–FY2021 is on the then-2.0bn share base (par SR 10); from FY2022 it is on the current ~5.0bn shares, so EPS is not comparable across that boundary.
Reconciliation: Yahoo vs as-reported (Argaam / annual report)
| Period | Metric | Yahoo | Reported | Status |
|---|---|---|---|---|
| FY2023 | Revenue | 71,777.2 | 71,777.2 | confirmed |
| FY2024 | Revenue | 75,893.4 | 75,893.4 | confirmed |
| FY2023 | Net profit | 13,295.4 | 13,295.4 | confirmed |
| FY2024 | Net profit | 24,688.7 | 24,688.7 | confirmed |
| FY2023 | Total equity | 78,984.9 | 78,984.9 | confirmed |
| FY2024 | Total equity | 89,416.5 | 89,416.6 | confirmed |
| FY2023 | Operating cash flow | 22,417.6 | 22,417.6 | confirmed |
| FY2024 | Operating cash flow | 19,885.3 | 19,885.3 | confirmed |
| FY2023 | Cash & equivalents | 13,371.3 | 13,371.3 | confirmed |
| FY2024 | Cash & equivalents | 15,543.4 | 15,643.4 | flag |
| FY2023 | Total borrowings | 26,232.7 | 21,957.5 | flag |
| FY2024 | Total borrowings | 17,295.8 | 15,131.7 | flag |
| FY2024 | Gross profit | — | 37,300.4 | 1 source |
| FY2023 | Gross profit | — | 34,740.1 | 1 source |
| FY2024 | Operating profit | — | 14,425.6 | 1 source |
| FY2023 | Operating profit | — | 13,161.3 | 1 source |
| FY2024 | Total assets | — | 160,638.1 | 1 source |
| FY2023 | Total assets | — | 159,645.9 | 1 source |
Confirmed = stc's audited figure and Yahoo agree within 2%. Flag = a genuine, explained source difference (Yahoo's total-debt adds IFRS-16 lease liabilities; cash differs by a held-for-sale reclassification). Single-source = only the audited statement carries it (gross/operating profit, total assets). Not financial advice. (millions of )
Source filings (statements & reports)
Figures are confirmed where the as-reported source agrees with Yahoo; mismatches are flagged, not hidden. Not financial advice.
Growth & profitability
Revenue, net income and margin.
RevenueNet incomeNet margin %tap a bar for figures
Key figures
Covers 15 years · FY2010–FY2025
| Metric | FY'22 | FY'23 | FY'24 | FY'25 | TTM'26 |
|---|---|---|---|---|---|
| Revenue | 67.43B | 71.78B | 75.89B | 77.82B | — |
| Net Income | 12.17B | 13.30B | 24.69B | 14.83B | 14.88B |
| Net Margin | 18.0% | 18.5% | 32.5% | 19.1% | — |
| Operating Cash Flow | 26.35B | 22.42B | 19.89B | 18.28B | — |
| OCF Margin | 39.1% | 31.2% | 26.2% | 23.5% | — |
| Capital Expenditure | 7.70B | 9.57B | 11.93B | 11.79B | — |
| Free Cash Flow | 18.65B | 12.85B | 7.96B | 6.49B | — |
| FCF Margin | 27.7% | 17.9% | 10.5% | 8.3% | — |
| FCF Conversion | 153.3% | 96.6% | 32.2% | 43.8% | — |
| EPS (Diluted) | 2.44/sh | 2.66/sh | 4.95/sh | 2.97/sh | 2.98/sh |
| Dividend / Share | 1.59/sh | 2.10/sh | 2.85/sh | 3.20/sh | — |
Dividend return (if you buy today)if you buy today
Dividend yield7.37%
Dividend / share3.20
If you invest
Shares (≈)230
Est. annual income736.46
At this rate, dividends alone return your capital in ~13.6 years.
Dividend history
Dividend / share & historical yield (SAR).
Dividend / share yield %tap a bar for figures
Quarterly dividends & yield
Per-share dividends by quarter, full-year total, and yield on the year's average price · SAR
| Year | Q1 | Q2 | Q3 | Q4 | Full year | Yield (avg) |
|---|---|---|---|---|---|---|
| 2026 | 0.55 | 0.55 | — | — | 1.10 | 2.5% |
| 2025 | — | — | — | — | 3.20 | 7.4% |
| 2024 | 0.40 | 1.40 | 0.40 | 0.40 | 2.85 | 7.1% |
| 2023 | — | — | — | — | 2.10 | 5.3% |
| 2022 | 0.40 | 0.40 | 0.40 | 0.40 | 1.59 | 3.8% |
Corporate actions
DCash Dividend
0.55 /sh2026-05-03
DCash Dividend
0.55 /sh2026-02-24
DCash Dividend
0.55 /sh2025-11-09
DCash Dividend
0.55 /sh2025-07-31
DCash Dividend
2.00 /sh2025-05-14
DCash Dividend
0.55 /sh2025-05-04
DCash Dividend
0.55 /sh2025-03-06
DCash Dividend
0.40 /sh2024-11-07
DCash Dividend
0.40 /sh2024-07-29
DCash Dividend
0.40 /sh2024-05-22
Valuation breakdown
Fair value = median of the applicable methods (DCF، DDM، Graham، Residual Income، Earnings Power).
Each method below is a different lens on the same company — no single method dominates the result.
Discounted Cash Flow
Values the company from the future cash it's expected to generate. · Tap to adjust assumptions
23.14
Dividend Discount Model
Values the share from the dividends it's expected to keep paying. · Tap to adjust assumptions
46.47
Graham Number
A conservative benchmark built from earnings and book value. · Tap to adjust assumptions
33.99
Residual Income (justified P/B)
Values the profit the company earns above the cost of its equity. · Tap to adjust assumptions
34.26
Earnings Power Value
Values today's earning power as-is, assuming no growth. · Tap to adjust assumptions
29.25
DCF only is anchored on FY2025 — the latest year with positive cash flow that supports a value. The other methods (DDM, Graham, RIM, EPV) use current / normalized figures.
Fair Value (median)33.99
▸ Show assumptions▾ Assumptions
- Effective discount rate
- 10.10%
- CAPM cost of equity
- 10.50%
- Risk-free rate
- 4.50%
- Equity risk premium
- 6.00%
- DCF growth (stage 1)
- 8.00%
- DCF terminal growth
- 3.00%
- DCF forecast years
- 5
- DDM dividend growth
- 3.00%
Tune these per company in the Hajras Odoo backend; values recompute automatically.
Analyst Price Targets
1 houseConsensus (median)
49.60
+14.2% vs price
Range: 49.60 – 49.60
Hajras fair value: 33.99
Aljazira Capital
2026-04-28 · STC Results Flash Note Q1-26
Overweight
49.60
+14.2%
Forward guidance & context
No explicit management revenue target disclosed (IR materials avoid forward guidance figures); ~3.5% reasoned from the recent revenue run-rate (FY2024 +5.7%, FY2025 +2.5%, 9M2025 +2.58%, Q1 2026 +3.8%) as the 5G/fibre capex super-cycle (capex intensity ~10.5%) matures toward monetization, with ex-one-off earnings growth running materially higher (+12-15%).
Management-guided scenario (not the headline fair value)
guided growth: 3.5%(reasoned from expansion plans)
guided DCF: 23.47
vs base case 23.14
price 43.42
Re-runs the DCF at the guided growth to show the upside if management's plans land. The headline fair value stays grounded in reported numbers.
- 2025-02
FY2024 net profit jumped 85.7% to 24.7bn, but this was driven by a one-off 12.88bn gain from selling controlling stakes in tower unit TAWAL and Digital Infrastructure Co. to PIF (13.97bn total profit from discontinued operations). Excluding non-recurring items, EPS rose just 4.5% to 2.33 and revenue grew 5.7% to 75.89bn. A valuation must normalize the headline profit and strip this disposal gain.
Argaam — stc FY2024 results (net profit +86% to 24.7B; 12.88B TAWAL/Digital Infra disposal gain) - 2026-02
FY2025 net profit fell ~40% YoY to ~15bn purely because the prior-year had the ~14bn TAWAL/Digital Infra disposal gain. On a clean basis the business grew: record revenue of 77.8bn (+2.5%), EBITDA +6.1% and net profit +12.5% excluding non-recurring items. This confirms the 2024 profit spike was a one-off and underlying operations are still expanding.
Argaam — stc FY2025 record revenue 77.8bn, net profit +12.5% ex non-recurring; AGBI corroboration - 2025-10
stc is in a 5G/fibre capex super-cycle but keeping it disciplined: 9M 2025 capex intensity was 10.49% of revenue. Coverage scaled to 60.78% 5G population coverage (from 49.95%), 9,420 5G towers and 3.69m fibre-to-the-home connections over 253,000 km of fibre, plus data-centre/AI build-out (center3-HUMAIN, AWS, up to 1 GW capacity). This investment underpins the topline but caps near-term free cash flow.
stc Investor Relations — Financial Results Presentation Q3 2025 (capex intensity 10.49%; 5G coverage 60.78%; 3.69m fibre connections) - 2024-08
Board (24 Aug 2024) set a 3-year dividend policy: a fixed minimum 0.55/share per quarter (2.20/yr) from Q4 2024 through Q3 2027, with optional special dividends subject to capex needs and financial position. On top, a 2.00/share special dividend (9.97bn) was declared for 2024 funded by the disposal proceeds. The fixed dividend (~9.5% yield, ~84% payout) is well covered, but special payouts are not guaranteed.
Saudi Exchange (Tadawul) / Argaam — stc 3-year dividend policy 0.55/qtr Q4 2024–Q3 2027 + 2 special for 2024
Sources
Argaam — stc FY2024 results: net profit +86% to 24.7B, Q4 13.5B (12.88B TAWAL/Digital Infra disposal gain; 13.97B from discontinued ops) Argaam — stc FY2025: record revenue 77.8bn, net profit +12.5% excluding non-recurring items (EBITDA +6.1%, fibre/5G/data-centre detail) Argaam — stc Q1 2026: revenue 19.94bn (+3.8%), net profit +12% ex non-recurring, 0.55 dividend, Silklink fibre investment stc Investor Relations — Financial Results Presentation Q3 2025 (9M revenue +2.58%, net profit +14.84% ex one-offs, capex intensity 10.49%, dividend policy text) Argaam — stc Q4 2024 dividend 0.55/share + 2.00/share special dividend for 2024 (record date 5 Mar 2025) Argaam — stc declares 3-year dividend policy at 0.55/share every quarter (Q4 2024 to Q3 2027, board approved 24 Aug 2024) AGBI — stc continues dividend payout despite FY2025 profit drop (one-off 14bn 2024 gain context; PIF stake purchase) SPA — stc Group releases 2024 annual financial results (net profit 24,689m, +85.7%)
Management guidance is not a promise; shown as context and a separate scenario. Not financial advice.
Wealth simulator
What if you'd invested in stc (Saudi Telecom Company) regularly?
Starting year
- Invested
- 1K/yr · 17K total(2010 → today · 17 yrs)
- your value today is
- 35.9K SAR
- Total return
- +111.5%(+50.1% Dividends · +61.4% Capital gain)
- Annualised (IRR)
- +9.3%
Invested17KSAR
Dividends8.5KSAR
Capital gain10.4KSAR
InvestedCapital gainDividendstap a bar for figures
Quarterly Research
Q1 2026Saudi Telecom (STC) — Q1 2026 Research Note
STC delivered steady Q1-26 results — revenue up 3.8% to SAR 19.9bn and normalized earnings up ~12% — on gross-margin expansion and subscriber growth, even as its Channels line keeps shrinking. The stock sits at a crossroads: Aljazira Capital sees ~16% upside to a SAR 49.6 target, while a conservative discounted-cash-flow lens reads it as already full at SAR 43.
Neutral synthesis — informational only, not investment advice. · Hajras + Aljazira Capital
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