Risk factor
Very poor trading liquidity
Profitability factor
Very strong margins and returns
About
Professional Medical Expertise Company, established in 2010 and headquartered in Jeddah, Kingdom of Saudi Arabia, is a key distributor of medical equipment, instruments, and supplies. Formerly known as Socrates Specialized Trading Company until its name change in July 2012, the firm operates across Saudi Arabia, the United Arab Emirates, and other GCC nations. Its extensive product portfolio addresses numerous medical disciplines, including spine care, sports medicine, pediatrics, orthopedics, general surgery, infection prevention, oncology, diabetes management, gastroenterology, endoscopy, bariatric surgery, women's health, and critical care. Beyond sales, the company manages medical device warehousing, serves as a legal representative for manufacturers of medical products and devices, and facilitates the import and export of essential medical implants, devices, and consumables. Additionally, it offers sales and installation services for medical equipment and supplies to both public and private hospitals and medical centers.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITD.