Risk factor
Negligible price volatility
Profitability factor
Good margins and returns
About
Saudi Ground Services Company (SGS) delivers a comprehensive range of essential ground handling and support services to airlines and passengers across the Kingdom of Saudi Arabia. Its extensive offerings include diverse passenger services such as efficient station management, gate operations, specialized assistance for passengers with reduced mobility, VIP and deportee handling, enhanced security protocols, flight operations coordination, seamless arrival and transfer processes, check-in, passenger manifest and seat allocation, management of excess baggage, and the issuance of boarding passes and baggage tags, along with critical load control and crew handling. SGS is also responsible for meticulous baggage handling, encompassing assembly, sorting, reconciliation, transportation, and the operation of baggage reconciliation systems, in addition to loading and unloading services. The company provides vital ramp operations, including aircraft turnaround coordination, ground-to-cockpit communication, marshaling, supervision of aircraft loading, provision of ground power and air conditioning units, push-back procedures, unit load device control, air starter units, aircraft towing, and wing-walker services. Furthermore, SGS offers specialized cargo services, comprehensive fleet solutions like cabin grooming, deep cleaning, and disinfection, alongside turnaround cleaning and water/toilet servicing. It manages traffic control and intricate load control activities, which involve detailed load planning, precise aircraft weight and balance calculations, messaging, telecommunications, and the issuance of loading instruction reports and captain notifications. The company also extends representation and supervision services. Established in 2008 and headquartered in Jeddah, Saudi Arabia, Saudi Ground Services Company oversees operations at 28 airports nationwide and operates as a subsidiary of the Saudi Arabian Airlines Corporation.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, r
Target Price
The average target price of 4031.SR is 42 and suggests 33% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incre