Risk factor
Limited trading liquidity
Profitability factor
Weak margins and returns
About
The Saudi Company for Hardware (4008.SR) primarily functions as a retailer and wholesaler, supplying a comprehensive range of household and office goods, including appliances and general supplies. It also provides construction and electrical tools, as well as various hardware components. Operating throughout the Kingdom of Saudi Arabia, the company is structured around two key operational divisions: Sales and Services, and Logistic Services. Beyond its core retail and wholesale activities, the firm extends its offerings to include comprehensive logistics solutions such as freight forwarding, transportation, and contract logistics services. Demonstrating a significant presence, as of January 9, 2022, SCH managed 35 retail locations spread across 19 different cities, complemented by a robust online sales channel. Established in Riyadh, Kingdom of Saudi Arabia, in 1985, the company maintains its headquarters there.
Company Valuation
From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. Specifically, the stock is fairly valued on P/E, undervalued
Target Price
The average target price of 4008.SR is 27 and suggests 16% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incre