Risk factor
Low price volatility
Profitability factor
Solid dividends
About
Sahara International Petrochemical Company (SIPCHEM) specializes in the ownership, development, operation, and management of industrial ventures within the chemical and petrochemical sectors, serving markets in the Kingdom of Saudi Arabia and globally. Its business operations are structured across five key segments: Basic Chemicals, Intermediate Chemicals, Polymers, Trading, and Corporate and Others. SIPCHEM's product portfolio is extensive, covering basic chemicals like methanol, butane, tetrahydrofuran, maleic anhydride, carbon monoxide, and gamma butyrolactone. It also manufactures intermediate chemicals such as acetic acid, acetic anhydride, vinyl acetate monomer, dichloroethane, caustic soda, ethyl acetate, and butyl acetate. Furthermore, its polymer offerings include low-density polyethylene (LDPE), ethylene vinyl acetate, polyvinyl acetate, polyvinyl alcohol, crosslinkable and semi-conductive LDPE compounds, polypropylene, and polybutylene terephthalate. Beyond its core manufacturing, SIPCHEM is involved in marketing and distributing other petrochemical products. The company also provides electrical connecting wire products, manufactures and sells molds and dies along with associated services, and produces ethylene-vinyl acetate films. Initially incorporated in 1999, the company operated as Saudi International Petrochemical Company until May 2019, when it officially adopted its current name. Sahara International Petrochemical Company is based in Riyadh, Kingdom of Saudi Arabia.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA, overpriced on P/FC.
Target Price
The average target price of 2310.SR is 16.1 and suggests 40.1% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i