2083:TADAWULPower and Water Utility Company for Jubail and Yanbu Analysis

The stock is trading at SAR 29.6, well below its 20‑day (30.42), 50‑day (32.19) and 200‑day (38.19) simple moving averages, signaling a bearish technical backdrop. Momentum indicators are neutral to weak, with an RSI of 42 and a bearish MACD crossover, while the price sits near the identified support level of 28.42 and faces resistance around 32.5. Fundamentally, the company carries an extremely high debt‑to‑equity ratio of 239, far outweighing its cash reserves, which raises solvency concerns despite a modest ROE of 8.3%. However, the forward earnings outlook looks brighter – forward EPS is projected at 3.31 versus a trailing EPS of 0.11, compressing the forward P/E to 8.9 and aligning the valuation closer to the DCF‑derived fair value of 38.9, implying upside potential of over 100%. The dividend yield of 6.08% is attractive, but a payout ratio of zero suggests the current payout may not be sustainable on earnings alone. Recent financing of a $500 million industrial wastewater treatment plant indicates ongoing capital investment, which could enhance long‑term cash flows but also adds to leverage. Overall, the stock presents a mixed picture: bearish short‑term price action, high leverage, but a compelling long‑term valuation thesis driven by earnings growth and a solid dividend yield.