Risk factor
Very poor trading liquidity
Profitability factor
Very strong margins and returns
About
Established in Riyadh, Saudi Arabia, in 2005, Alshehili Company for metal industries is a prominent firm specializing in the design, production, and distribution of a comprehensive array of logistics and defense equipment. For the logistics sector, the company offers a diverse portfolio of freight vehicles. This includes various trailer types such as refrigerated, dry cargo, curtain side, high side, flatbed, low bed, double-deck car, and utility trailers. They also manufacture tanker trucks and trailers, boom trucks, block cranes, and heavy-duty construction equipment like tipper dump trailers/trucks, concrete mixers, and concrete pumps. Specialized transport solutions feature horse transporters, mobile homes, and mobile clinics. Their offerings further extend to a wide range of trucks (e.g., dry cargo box, refrigerated box, sliding door, curtain type, icebox side door, fixed body car recovery, mobile workshop, and dianna models), armored cash-carrying SUVs and vans, as well as insulated refrigerated and dry cargo vans and pick-ups. Complementary products include shelters, cold storage units, cooling systems, chassis, tail lifts, concrete block grapples, and windscreen-glasses. In the defense arena, Alshehili manufactures robust armored solutions such as shield turret pickups, heavy machinery, troop carriers, specialized project vehicles, and mobile shooting ranges. They also provide armored glass and comprehensive vehicle armoring products. Beyond manufacturing, the company delivers extensive maintenance, repair, and overhaul (MRO) services. These encompass repairs for various components like underfloors, outer edges, walls, doors, chassis, axles, roofs, and paintwork, along with complete refurbishing overhauls. Alshehili serves a broad clientele, including numerous commercial organizations and governmental institutions throughout the Kingdom of Saudi Arabia.
Company Valuation
From both historical and forecast perspectives, the stock is underpriced compared to similar stocks. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITD.