Risk factor
Resilient to price shocks
Profitability factor
Overvalued vs peers
About
Saudi Paper Manufacturing Company (SPMC) stands as a significant producer and supplier of diverse tissue paper goods, with its market reach spanning the Kingdom of Saudi Arabia, the broader Gulf Cooperation Council (GCC) region, and global markets. The company's activities are managed through its dedicated Manufacturing division and a comprehensive Trading and Other Services segment. Under well-known brands such as Mouchoir and City, SPMC offers an extensive product line, including facial and pocket tissues, toilet rolls, kitchen towels, napkins, industrial tissues, and maxi rolls. Demonstrating flexibility, it also provides custom-tailored tissue solutions like specialized table napkins, unique towels, couch covers, and various interfold-Cfold options. Beyond its primary tissue production, SPMC is involved in the manufacturing, sourcing, and distribution of pulps and other paper materials. The company further contributes to resource management by collecting, sorting, transporting, and pressing waste papers. Additionally, SPMC extends its services to include private label manufacturing for both retail chains and corporate clients. Established in 1989, the company maintains its main office in Dammam, located in the Kingdom of Saudi Arabia.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'expensive' on EV/EBI
Target Price
The average target price of 2300.SR is 59 and suggests 2% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation