News Flash: Analysts Just Made A Upgrade To Their Almawarid Manpower Company (TADAWUL:1833) Forecasts

Almawarid Manpower Company (TADAWUL:1833) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

After the upgrade, the twin analysts covering Almawarid Manpower are now predicting revenues of ر.س2.5b in 2025. If met, this would reflect a notable 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 31% to ر.س8.62. Prior to this update, the analysts had been forecasting revenues of ر.س2.6b and earnings per share (EPS) of ر.س8.45 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest update, the analysts are now more bullish on the company's earnings power.

Check out our latest analysis for Almawarid Manpower

There was no real change to the average price target of ر.س158, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Almawarid Manpower's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.6% per year. So it's pretty clear that, while Almawarid Manpower's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Almawarid Manpower could be a good candidate for more research.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Almawarid Manpower that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.