Risk factor
Poor trading liquidity
Profitability factor
Very strong margins and returns
About
Established in Dammam, Kingdom of Saudi Arabia, in 2017, Fourth Milling Co. is a key player in the grain processing and distribution sector. The company primarily focuses on the manufacturing, packaging, and commercialization of flour, its derivative products, animal feed, and bran throughout Saudi Arabia. Its operations encompass the milling and packaging of wheat, maize, and barley, alongside the comprehensive processing, milling, and bleaching of rice for rice flour production. Fourth Milling Co. also produces specialized flour and dough tailored for bakeries, in addition to concentrated and general animal fodder. Beyond its production facilities, the company manages retail outlets for animal food and feed. Furthermore, it provides extensive storage solutions, including grain silos, warehouses for flour and agricultural products, and strategic facilities at ports, customs, and free zones. Its commercial reach extends to the wholesale distribution of bakery items and the trade of health-conscious and specialty food products.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is underpriced on P/E, of fair value on EV/EBIT
Target Price
The average target price of 2286.SR is 4.6 and suggests 6% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation