Declared Dividend • Jun 18
Dividend of ر.س0.50 announced Dividend of ر.س0.50 is the same as last year. Ex-date: 8th July 2026 Dividend yield will be 1.5%, which is about the same as the industry average. Announcement • Jun 17
Middle East Healthcare Company, Annual General Meeting, Jul 07, 2026 Middle East Healthcare Company, Annual General Meeting, Jul 07, 2026, at 18:30 Arab Standard Time. Location: jeddah Saudi Arabia Price Target Changed • Jun 16
Price target decreased by 11% to ر.س57.80 Down from ر.س65.05, the current price target is an average from 4 analysts. New target price is 75% above last closing price of ر.س32.96. Stock is down 38% over the past year. The company is forecast to post earnings per share of ر.س1.60 for next year compared to ر.س3.28 last year. Major Estimate Revision • Jun 01
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ر.س3.42b to ر.س3.35b. EPS estimate also fell from ر.س1.65 per share to ر.س1.46 per share. Net income forecast to shrink 7.8% next year vs 13% growth forecast for Healthcare industry in Saudi Arabia . Consensus price target broadly unchanged at ر.س65.05. Share price fell 4.4% to ر.س32.50 over the past week. Reported Earnings • May 07
First quarter 2026 earnings released: EPS: ر.س0.28 (vs ر.س1.74 in 1Q 2025) First quarter 2026 results: EPS: ر.س0.28 (down from ر.س1.74 in 1Q 2025). Revenue: ر.س765.2m (up 4.3% from 1Q 2025). Net income: ر.س25.7m (down 84% from 1Q 2025). Profit margin: 3.4% (down from 22% in 1Q 2025). Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Major Estimate Revision • May 06
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ر.س3.46b to ر.س3.42b. EPS estimate also fell from ر.س1.90 per share to ر.س1.65 per share. Net income forecast to shrink 50% next year vs 9.4% growth forecast for Healthcare industry in Saudi Arabia . Consensus price target of ر.س66.30 unchanged from last update. Share price fell 8.1% to ر.س34.38 over the past week. New Risk • Mar 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 53% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risk Large one-off items impacting financial results. Major Estimate Revision • Mar 02
Consensus EPS estimates fall by 23% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from ر.س2.48 to ر.س1.90 per share. Revenue forecast steady at ر.س3.46b. Net income forecast to shrink 42% next year vs 13% growth forecast for Healthcare industry in Saudi Arabia . Consensus price target down from ر.س69.30 to ر.س66.30. Share price fell 12% to ر.س29.04 over the past week. Price Target Changed • Feb 26
Price target decreased by 9.1% to ر.س66.30 Down from ر.س72.90, the current price target is an average from 4 analysts. New target price is 109% above last closing price of ر.س31.72. Stock is down 59% over the past year. The company is forecast to post earnings per share of ر.س1.90 for next year compared to ر.س3.28 last year. Reported Earnings • Feb 25
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: ر.س3.28 (up from ر.س3.06 in FY 2024). Revenue: ر.س3.10b (up 7.6% from FY 2024). Net income: ر.س301.9m (up 7.1% from FY 2024). Profit margin: 9.7% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.8%. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Nov 06
Third quarter 2025 earnings released: EPS: ر.س0.69 (vs ر.س0.67 in 3Q 2024) Third quarter 2025 results: EPS: ر.س0.69. Revenue: ر.س769.0m (up 5.0% from 3Q 2024). Net income: ر.س40.3m (down 35% from 3Q 2024). Profit margin: 5.2% (down from 8.4% in 3Q 2024). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Healthcare industry in Saudi Arabia. Buy Or Sell Opportunity • Oct 15
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.1% to ر.س57.55. The fair value is estimated to be ر.س72.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 72%. For the next 3 years, revenue is forecast to grow by 7.5% per annum. Earnings are also forecast to grow by 6.2% per annum over the same time period. New Risk • Aug 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 59% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 09
Second quarter 2025 earnings: EPS in line with analyst expectations despite revenue beat Second quarter 2025 results: EPS: ر.س0.69 (up from ر.س0.67 in 2Q 2024). Revenue: ر.س791.1m (up 11% from 2Q 2024). Net income: ر.س63.7m (up 4.1% from 2Q 2024). Profit margin: 8.0% (down from 8.6% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. New Risk • Jun 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 6.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Large one-off items impacting financial results. Announcement • Jun 12
Middle East Healthcare Company, Annual General Meeting, Jun 29, 2025 Middle East Healthcare Company, Annual General Meeting, Jun 29, 2025, at 20:00 Arab Standard Time. Location: jeddah Saudi Arabia New Risk • May 19
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 71% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risk Large one-off items impacting financial results. Major Estimate Revision • May 14
Consensus EPS estimates increase by 20% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ر.س3.15 to ر.س3.77. Revenue forecast unchanged at ر.س3.20b. Net income forecast to shrink 12% next year vs 13% growth forecast for Healthcare industry in Saudi Arabia . Consensus price target of ر.س83.58 unchanged from last update. Share price fell 9.6% to ر.س63.90 over the past week. Reported Earnings • May 10
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: ر.س1.74 (up from ر.س0.56 in 1Q 2024). Revenue: ر.س733.7m (up 6.5% from 1Q 2024). Net income: ر.س160.1m (up 208% from 1Q 2024). Profit margin: 22% (up from 7.5% in 1Q 2024). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 4.4%. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. New Risk • Mar 27
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risk Large one-off items impacting financial results. Major Estimate Revision • Mar 09
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ر.س3.25b to ر.س3.19b. EPS estimate also fell from ر.س3.30 per share to ر.س2.96 per share. Net income forecast to shrink 3.2% next year vs 10% growth forecast for Healthcare industry in Saudi Arabia . Consensus price target broadly unchanged at ر.س91.52. Share price fell 3.8% to ر.س71.60 over the past week. Reported Earnings • Mar 04
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: ر.س3.06 (up from ر.س1.96 in FY 2023). Revenue: ر.س2.88b (up 8.7% from FY 2023). Net income: ر.س282.0m (up 56% from FY 2023). Profit margin: 9.8% (up from 6.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 18%. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 05
Third quarter 2024 earnings released: EPS: ر.س0.67 (vs ر.س0.58 in 3Q 2023) Third quarter 2024 results: EPS: ر.س0.67 (up from ر.س0.58 in 3Q 2023). Revenue: ر.س732.1m (up 9.1% from 3Q 2023). Net income: ر.س61.7m (up 16% from 3Q 2023). Profit margin: 8.4% (up from 7.9% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. New Risk • Aug 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risk Share price has been volatile over the past 3 months (5.9% average weekly change). Reported Earnings • Aug 07
Second quarter 2024 earnings released: EPS: ر.س0.66 (vs ر.س0.44 in 2Q 2023) Second quarter 2024 results: EPS: ر.س0.66 (up from ر.س0.44 in 2Q 2023). Revenue: ر.س712.7m (up 14% from 2Q 2023). Net income: ر.س61.2m (up 52% from 2Q 2023). Profit margin: 8.6% (up from 6.4% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ر.س69.70, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 29x in the Healthcare industry in Saudi Arabia. Total returns to shareholders of 71% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س121 per share. Buy Or Sell Opportunity • Jul 18
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.2% to ر.س87.80. The fair value is estimated to be ر.س110, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 58%. For the next 3 years, revenue is forecast to grow by 9.8% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. New Risk • Jun 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risk Share price has been volatile over the past 3 months (6.4% average weekly change). Buy Or Sell Opportunity • May 27
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 37% to ر.س72.60. The fair value is estimated to be ر.س93.68, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 58%. For the next 3 years, revenue is forecast to grow by 10% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Announcement • May 25
Middle East Healthcare Company, Annual General Meeting, Jun 13, 2024 Middle East Healthcare Company, Annual General Meeting, Jun 13, 2024, at 20:00 Arab Standard Time. Location: jeddah Saudi Arabia Price Target Changed • May 15
Price target increased by 7.4% to ر.س90.46 Up from ر.س84.20, the current price target is an average from 7 analysts. New target price is 7.0% above last closing price of ر.س84.50. Stock is up 66% over the past year. The company is forecast to post earnings per share of ر.س2.78 for next year compared to ر.س1.96 last year. Major Estimate Revision • May 12
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ر.س2.81 to ر.س3.12. Revenue forecast steady at ر.س3.01b. Net income forecast to grow 67% next year vs 20% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target up from ر.س84.20 to ر.س90.07. Share price was steady at ر.س89.30 over the past week. Reported Earnings • May 06
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: ر.س0.56 (up from ر.س0.55 in 1Q 2023). Revenue: ر.س689.2m (up 8.0% from 1Q 2023). Net income: ر.س51.9m (up 3.6% from 1Q 2023). Profit margin: 7.5% (down from 7.9% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) also missed analyst estimates by 26%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 07
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: ر.س1.96 (up from ر.س0.82 in FY 2022). Revenue: ر.س2.65b (up 23% from FY 2022). Net income: ر.س180.2m (up 140% from FY 2022). Profit margin: 6.8% (up from 3.5% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.6%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ر.س91.00, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 36x in the Healthcare industry in Saudi Arabia. Total returns to shareholders of 158% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س72.92 per share. Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ر.س114, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 36x in the Healthcare industry in Saudi Arabia. Total returns to shareholders of 248% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س82.75 per share. New Risk • Feb 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.6x net interest cover). Minor Risk Share price has been volatile over the past 3 months (5.5% average weekly change). Price Target Changed • Feb 01
Price target increased by 7.9% to ر.س80.06 Up from ر.س74.20, the current price target is an average from 7 analysts. New target price is 23% below last closing price of ر.س104. Stock is up 280% over the past year. The company is forecast to post earnings per share of ر.س2.12 for next year compared to ر.س0.82 last year. Price Target Changed • Dec 26
Price target increased by 8.0% to ر.س74.20 Up from ر.س68.73, the current price target is an average from 7 analysts. New target price is 15% below last closing price of ر.س86.90. Stock is up 241% over the past year. The company is forecast to post earnings per share of ر.س2.15 for next year compared to ر.س0.82 last year. Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ر.س86.20, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 29x in the Healthcare industry in Saudi Arabia. Total returns to shareholders of 146% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س34.85 per share. Major Estimate Revision • Nov 16
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from ر.س2.58b to ر.س2.65b. EPS estimate increased from ر.س2.03 to ر.س2.36 per share. Net income forecast to grow 57% next year vs 15% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target up from ر.س65.30 to ر.س67.44. Share price was steady at ر.س70.00 over the past week. Reported Earnings • Nov 10
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: ر.س0.58 (up from ر.س0.12 in 3Q 2022). Revenue: ر.س671.0m (up 31% from 3Q 2022). Net income: ر.س53.3m (up 380% from 3Q 2022). Profit margin: 7.9% (up from 2.2% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 23%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 26% per year. Valuation Update With 7 Day Price Move • Oct 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ر.س61.00, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 28x in the Healthcare industry in Saudi Arabia. Total returns to shareholders of 72% over the past three years. Announcement • Sep 26
Middle East Healthcare Company Appoints Sobhi Abduljalil Batterjee as the Chairman of the Board Middle East Healthcare Company has named Sobhi Abduljalil Batterjee as the Chairman of the board for the coming three years. The officials assumed their duties on 17 September 2023 and will remain in position until 16 September 2026. New Risk • Aug 31
New major risk - Revenue and earnings growth Earnings have declined by 27% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 27% per year over the past 5 years. Minor Risks High level of debt (88% net debt to equity). Share price has been volatile over the past 3 months (6.8% average weekly change). Reported Earnings • Aug 06
Second quarter 2023 earnings released: EPS: ر.س0 (vs ر.س0.11 in 2Q 2022) Second quarter 2023 results: EPS: ر.س0 (down from ر.س0.11 in 2Q 2022). Revenue: ر.س624 (down 100% from 2Q 2022). Net income: ر.س42.0 (down 100% from 2Q 2022). Profit margin: 6.7% (up from 2.1% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. New Risk • Jul 01
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Saudi stocks, typically moving 7.3% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.3x net interest cover). Share price has been highly volatile over the past 3 months (7.3% average weekly change). Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ر.س67.70, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 32x in the Healthcare industry in Saudi Arabia. Total returns to shareholders of 138% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س27.98 per share. Price Target Changed • May 23
Price target increased by 15% to ر.س37.58 Up from ر.س32.70, the current price target is an average from 6 analysts. New target price is 36% below last closing price of ر.س58.30. Stock is up 60% over the past year. The company is forecast to post earnings per share of ر.س1.80 for next year compared to ر.س0.82 last year. Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ر.س50.50, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 32x in the Healthcare industry in Saudi Arabia. Total returns to shareholders of 94% over the past three years. Major Estimate Revision • Apr 06
Consensus EPS estimates increase by 15% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from ر.س1.21 to ر.س1.39. Revenue forecast steady at ر.س2.47b. Net income forecast to grow 71% next year vs 14% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target up from ر.س30.60 to ر.س33.70. Share price was steady at ر.س37.40 over the past week. Price Target Changed • Apr 05
Price target increased by 10% to ر.س33.70 Up from ر.س30.60, the current price target is an average from 5 analysts. New target price is 9.0% below last closing price of ر.س37.05. Stock is up 16% over the past year. The company is forecast to post earnings per share of ر.س1.39 for next year compared to ر.س0.82 last year. Price Target Changed • Mar 29
Price target increased by 9.9% to ر.س32.70 Up from ر.س29.75, the current price target is an average from 5 analysts. New target price is 12% below last closing price of ر.س37.10. Stock is up 8.2% over the past year. The company is forecast to post earnings per share of ر.س1.34 for next year compared to ر.س0.82 last year. Reported Earnings • Mar 08
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: ر.س0.82 (up from ر.س0.19 in FY 2021). Revenue: ر.س2.15b (up 15% from FY 2021). Net income: ر.س75.2m (up 337% from FY 2021). Profit margin: 3.5% (up from 0.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 20%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Mohammed Mostafa Mohammed Bin Siddiq was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 05
Third quarter 2022 earnings released: EPS: ر.س0.12 (vs ر.س0.16 in 3Q 2021) Third quarter 2022 results: EPS: ر.س0.12 (down from ر.س0.16 in 3Q 2021). Revenue: ر.س512.4m (up 2.7% from 3Q 2021). Net income: ر.س11.1m (down 23% from 3Q 2021). Profit margin: 2.2% (down from 2.9% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Major Estimate Revision • Oct 07
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from ر.س0.90 to ر.س0.72. Revenue forecast unchanged from ر.س2.19b at last update. Net income forecast to grow 242% next year vs 17% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target of ر.س30.06 unchanged from last update. Share price rose 13% to ر.س30.70 over the past week. Reported Earnings • Aug 18
Second quarter 2022 earnings released: EPS: ر.س0.11 (vs ر.س0.099 in 2Q 2021) Second quarter 2022 results: EPS: ر.س0.11 (up from ر.س0.099 in 2Q 2021). Revenue: ر.س508.1m (up 11% from 2Q 2021). Net income: ر.س10.4m (up 14% from 2Q 2021). Profit margin: 2.1% (up from 2.0% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 14%, compared to a 10% growth forecast for the Healthcare industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Major Estimate Revision • Aug 09
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from ر.س2.13b to ر.س2.18b. EPS estimate fell from ر.س0.97 to ر.س0.79 per share. Net income forecast to grow 216% next year vs 15% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target of ر.س32.06 unchanged from last update. Share price fell 4.7% to ر.س33.15 over the past week. Major Estimate Revision • Jun 25
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from ر.س2.29b to ر.س2.11b. EPS estimate rose from ر.س0.82 to ر.س1.03. Net income forecast to grow 278% next year vs 21% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target up from ر.س31.58 to ر.س32.58. Share price was steady at ر.س32.30 over the past week. Announcement • May 27
Middle East Healthcare Company, Annual General Meeting, Jun 16, 2022 Middle East Healthcare Company, Annual General Meeting, Jun 16, 2022, at 16:30 Coordinated Universal Time. Location: King Road Tower, Floor No. (24) Jeddah Saudi Arabia Agenda: To Vote on the Board of Directors' report for the fiscal year ending on December 31, 2021; to vote on the company's auditor's report for the fiscal year ending December 31, 2021; to Vote on the financial statements for the fiscal year ending December 31, 2021; to Vote for to appoint the company's auditor from among the candidates based on the recommendation of the audit committee to examine, review and audit the financial statements for the second, third and annual quarters of 2022 and the first quarter of 2023, and determine their fees; and to consider other matters. Reported Earnings • May 16
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: ر.س0.22 (up from ر.س0.13 in 1Q 2021). Revenue: ر.س513.3m (up 23% from 1Q 2021). Net income: ر.س20.5m (up 69% from 1Q 2021). Profit margin: 4.0% (up from 2.9% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 73%. Over the next year, revenue is forecast to grow 16%, compared to a 11% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Price Target Changed • Apr 27
Price target decreased to ر.س31.58 Down from ر.س35.22, the current price target is an average from 3 analysts. New target price is 13% below last closing price of ر.س36.50. Stock is down 1.9% over the past year. The company is forecast to post earnings per share of ر.س0.88 for next year compared to ر.س0.19 last year. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Mohammed Mostafa Mohammed Bin Siddiq was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: ر.س0.19 (down from ر.س1.10 in FY 2020). Revenue: ر.س1.87b (up 5.7% from FY 2020). Net income: ر.س17.2m (down 83% from FY 2020). Profit margin: 0.9% (down from 5.7% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 23%, compared to a 9.3% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Price Target Changed • Feb 04
Price target decreased to ر.س35.22 Down from ر.س40.15, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of ر.س33.80. Stock is up 4.3% over the past year. The company is forecast to post earnings per share of ر.س0.58 for next year compared to ر.س1.10 last year. Major Estimate Revision • Dec 14
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from ر.س0.83 to ر.س0.57 per share. Revenue forecast steady at ر.س1.92b. Net income forecast to grow 66% next year vs 20% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target of ر.س38.61 unchanged from last update. Share price was steady at ر.س32.85 over the past week. Major Estimate Revision • Dec 14
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from ر.س0.83 to ر.س0.57 per share. Revenue forecast steady at ر.س1.92b. Net income forecast to grow 66% next year vs 20% growth forecast for Healthcare industry in Saudi Arabia. Consensus price target of ر.س38.61 unchanged from last update. Share price was steady at ر.س32.85 over the past week. Reported Earnings • Nov 08
Third quarter 2021 earnings released: EPS ر.س0.16 (vs ر.س0.38 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: ر.س498.7m (up 1.3% from 3Q 2020). Net income: ر.س14.4m (down 59% from 3Q 2020). Profit margin: 2.9% (down from 7.1% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings.