Risk factor
Poor trading liquidity
Profitability factor
Very strong margins and returns
About
Middle East Pharmaceutical Industries Company (MEPIC), established in Riyadh, Saudi Arabia, in 1998, is a global pharmaceutical entity. The company's core activities encompass the entire lifecycle of generic medicines and various pharmaceutical products, from research and development to manufacturing and sales, catering to both local and international markets. Its business operations are strategically divided into private sector, public sector, and export divisions. MEPIC offers an extensive array of products designed to address a wide range of medical conditions. This includes dermatological treatments, remedies for respiratory ailments, central nervous system disorders, digestive issues, and musculoskeletal complaints, alongside medications for the urinary and reproductive systems. Furthermore, the company provides disinfectants and a diverse portfolio of therapeutic agents covering areas such as sexual health, diabetes, cardiovascular diseases, anti-infectives, anti-parasitics, pain relief, antiseptics, and general men's and women's health. These pharmaceutical and health products are supplied in numerous formats, including creams, ointments, syrups, capsules, tablets, gels, lotions, sprays, topical solutions, and personal hygiene items like hand sanitizers, mouthwashes, and soaps. In addition to its proprietary product lines, MEPIC leverages its manufacturing capabilities to offer contract manufacturing services. The company also specializes in cosmetic products, general health aids, and nutritional supplements. Originally known as Middle East Chemical Products Factory Company, the organization officially rebranded to Middle East Pharmaceutical Industries Company in January 2006.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, overvalued on EV/E