Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Fawaz Abdulaziz Al Hokair & Company (FAAHC), alongside its affiliated entities, operates as a prominent franchise retailer, offering a diverse portfolio of products including fashion items, beauty supplies, sporting goods, multimedia content, and food and beverages. The firm's operations are strategically divided into domestic retail within Saudi Arabia, international retail ventures, a dedicated Food and Beverage segment, and an Ecommerce division. FAAHC is engaged in selling various merchandise such as clothing, footwear, children's apparel, intimate wear, and accessories, as well as cosmetic products, accessible through its extensive network of physical stores and digital sales channels. Geographically, the company's presence spans numerous countries beyond its home base, including Jordan, Egypt, Kazakhstan, the United States, Azerbaijan, Georgia, Armenia, Morocco, Serbia, North Macedonia, and Montenegro. It currently manages approximately 1,756 retail locations within the Kingdom of Saudi Arabia, supplemented by 318 international outlets. Established in 1990, the company's corporate headquarters are situated in Riyadh, Saudi Arabia.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is of fair value on EV/EBITDA, undervalue
Target Price
The average target price of 4240.SR is 18 and suggests 27% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incre