Risk factor
Very high price volatility
Profitability factor
Very low or no dividends
About
Takween Advanced Industries, established in 1993 and headquartered in Al Khobar, Kingdom of Saudi Arabia, stands as a prominent manufacturer and distributor within the plastic packaging and non-woven fabrics sectors. Its operational footprint spans across Saudi Arabia and the Arab Republic of Egypt. The company's extensive plastic packaging portfolio encompasses polyethylene terephthalate (PET) pre-forms and bottles, primarily utilized for water, juices, other beverages, and home and personal care products. They also produce high-density polyethylene (HDPE) bottles and containers, various flexible packaging options including plastic films and sheets, and a wide selection of caps and closures catering to the mineral water, soft drink, juice, dairy, and food industries. Complementing these are disposable polystyrene cups (available in white, semi-transparent, and transparent) and lids for beverages, alongside a range of industrial plastic items such as crates, pallets, pails, buckets, plastic plates, cups, utensils, tables, chairs, and drums. In its non-woven fabrics division, Takween specializes in polypropylene spunbonded and spunmelt products. These materials find broad application across diverse industries, including consumer goods, medical supplies (such as gowns, drapes, and sterile wraps), industrial uses, construction, automotive, home furnishings, packaging, and hygiene products for babies and feminine care. Beyond manufacturing, Takween's activities extend to the production and wholesale trading of films, as well as the manufacturing, wholesale, and retail of plastic containers, polyethylene cups, rolls, and bags. The company is also involved in the management and operation of industrial centers, owns land, establishes industrial institutes to facilitate training in plastic product development, and undertakes the establishment, management, operation, and maintenance of various industrial projects. Its commercial endeavors further include the import, export, wholesale, and retail of plastic products. Takween Advanced Industries was formerly recognized as Al-Othman Plastic Products.
Company Valuation
Considering past and projected metrics, the stock is neither 'expensive' nor 'cheap' compared to its peers. Specifically, the stock is overvalued on EV/EBITDA.
Target Price
The average target price of 1201.SR is 3.5 and suggests 30% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to d