Saudi Telecom Company (7010.SR) stock analysis

In our weekly check, Saudi Telecom Company is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3.

About Saudi Telecom Company

Saudi Telecom Company is a Communication Services company (Telecommunications Services), listed on SAU as 7010.SR.

What our checks show for 7010.SR

Red flags

• The gross margin fell by 3.9 points, to 48.8%: costs are rising faster than prices.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 7.2 years.

Warning signs

• Analysts expect the net margin to shrink by 0.6 points from today's 18.5%.
• Free cash flow covers the dividend only 0.9 times.

Strengths

• Net debt is only 0.3x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 95.8 times over.
• Operating cash flow is 1.48x net profit: the profit arrives as real cash.
• Free cash flow is 11.9% of revenue: cash for dividends, buybacks or growth.
• The price is 13.9 times earnings (P/E), reasonable for its growth.
• A large company: market value $54.29 billion.

Next earnings report: 2026-10-28

Similar companies

TELIA.ST · VZ · TEL.OL · TMUS · 0788.HK · DTEGF

Questions

What grade does Saudi Telecom Company (7010.SR) have?

In our weekly check, Saudi Telecom Company is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7010.SR stock?

This week's biggest flags for Saudi Telecom Company: Gross margin falling, Deep past fall, Slow recovery after falls. In total 5 of 25 checks show a warning or a red flag.

What does Saudi Telecom Company do?

Saudi Telecom Company is a Communication Services company (Telecommunications Services), listed on SAU as 7010.SR.

When does Saudi Telecom Company report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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