Saudi Aramco closed out 2023 with an impressive profit of $121.3 billion, securing the top spot globally for profits among publicly listed companies.
To put this achievement into perspective, consider the combined profits of four major players on Wall Street’s Magnificent 7: Meta ($39 billion), Amazon.com ($30 billion), NVIDIA Corporation ($30 billion), and Tesla ($15 billion), totaling $114 billion.
This falls short by $7 billion compared to Saudi Aramco’s earnings alone. Even Apple and Warren Buffet’s Berkshire Hathaway B, with profits of $97 billion in 2023, and Microsoft with $72 billion, pale in comparison.
The phenomenal profits actually marked a decline for Saudi Aramco compared to its record-breaking profit of nearly $161 billion in 2022. This can be attributed to the downward trend in oil prices, prompting efforts by OPEC+ to bolster prices through production cuts led by Saudi Arabia.
Despite sector volatility, the Saudi behemoth has cemented its status as the profit leader for two consecutive years. Looking ahead, the market’s focus has shifted to the company’s stock value.
Microsoft, Apple, and Nvidia lead in terms of market capitalization. Saudi Aramco follows closely as the fourth and final company with a market cap exceeding $2 trillion.
Currently trading at $8.55, Saudi Aramco’s shares have appreciated over 20% since its listing in late 2019.
Based on InvestingPro’s Fair Value assessment, which aggregates 15 financial models tailored to Saudi Aramco’s specifics, the stock is deemed fairly valued, with a target price set at $8.53.
Leave a Reply