Risk factor
Strong & resilient to price shocks
Profitability factor
Strong margins and returns
About
Established in Riyadh, Saudi Arabia, in 1963, this company primarily focuses on the logistics, containment, and retail of liquefied petroleum gas (LPG) across Saudi Arabia. Its diverse offerings encompass various gas storage solutions, including underground and surface-level tanks, alongside gas and fiber cylinders. It also provides the necessary regulators for these units and the liquid gas itself. Beyond product supply, the firm delivers comprehensive services such as installation, refilling, and maintenance. Expanding its activities, it manufactures, distributes, and markets petroleum derivatives, chemicals, glass, and automotive parts. Additionally, it sells cylinders, empty tanks, related components, and specialized tank transportation equipment. The company also oversees equipment service centers and is responsible for the upkeep of petroleum apparatus and vehicles. Its supplied gases cater to a broad spectrum of applications, serving residential, industrial, agricultural, and commercial clients.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, over