College of Business

201FIN Assignment
The Principles of Finance

Fall 2022-2023
The Saudi Stock Exchange Market (Tadawul)

Project instructions:

In this assignment you need to submit an electronic copy of the project on Moodle by Tuesday 15th Nov. The submission should include your Excel file and the word document of the report.

Aims of the project

You should develop, through research and analytical skills, the ability to:
1. Locate sources of information for your companies, industries and market of choice.
2. Use several quantitative and IT tools to present and analyze collected data
3. Check the performance of a particular sector of the market

Important Notes

• The assignment should be conducted individually or in a group of two or three at a maximum.
• You need to choose two companies from a particular sector such as materials, real estate development, agricultural…etc. STC (Saudi Telecom Company and Mobily). These are telecommunication companies

• Submit an electronic copy of your report on Moodle and include all your information, student names and IDs.

• No submission will be accepted after the deadline.

• Copying from the Internet or any other source without referencing is considered as a cheating case and the student will be penalized according to Al Faisal University policy. We have strong plagiarism detection software that recognizes whether your work is copied from the internet or another source.

Tasks

You will be assigned to analyze two companies from Tadawul. To assist you in answering the questions and analyzing the companies, you can use the Tadawul official website.

Task 1. (20%)
General information about the companies.
Prepare a table on a word document to summarize the answer to the following questions:

Q1. What does your company do?
Q2. Who are the companies’ owners? How much they own? Are there any institutional investors in the company?
Q3. Who are the company’s main competitors?
Q4. What was the par value of the company in its initial public offering (IPO)? When did the companies join the Saudi market?
Q5. What is the current company’s share price?
Q6. How many shares of the company are outstanding?
Q7. What is the market value of the companies?

Task 2.
The Company annual reports and share price information

Collect the annual data on the two companies for the past 3 years (2019, 2020, 2021) for the following variables:
• Share price;
• Volume;
• Balance sheet;
• Income statement;
• Cash flow statement;
• The Saudi market general index “Tadawul All Share Index, TASI”.
• The companies’ sector index.
The companies’ operating performance (40%)

Investigate and analyze the latest three Financial Statements (you can find them from the company’s website or from Tadawul). Assess the companies’ performance by looking at the appropriate liquidity ratios, asset management ratios, leverage ratios, profitability ratios and market value ratios. Compare the companies’ performance over the past three years (time-series analysis) and with each other (peer group analysis).

You need to do all work on Excel sheet and present your findings using tables on the word document.

Task 3.
The company’s share price performance (40%)

You need to assess the company’s share price performance over the past three years (36 months). Use a calendar month such as Jan-2019; Feb-2019….until December 2021. You need to do the following:
• Comment on the share price performance for the last three years;
• Compare the two companies share price performance;
• Compare the share price performance between the company with its industry index, did the company outperform or underperform the industry?
• Compare the share price performance of the companies with the TASI, did they over/underperform against the TASI?

End of project

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