Saudi Cement Company's (TADAWUL:3030) Price Is Right But Growth Is Lacking
Saudi Cement Company's price-to-earnings (P/E) ratio of 16.4x might make it look like a buy right now compared to the market in Saudi Arabia
The Saudi Cement Company's (TADAWUL:3030) price-to-earnings (P/E) ratio of 16.4x appears attractive in comparison to other companies in Saudi Arabia, where higher P/E ratios are common.
Despite this, the company's growth potential is in question, with analysts forecasting a modest 0.3% earnings growth per year over the next three years, significantly lower than the market's predicted 16% growth per annum. This could explain why the company's P/E ratio is lower than that of its peers, as investors may be anticipating limited future growth.
As a result, existing shareholders may have a cautious outlook on the company's future performance.
Source: Simply Wall St
