Stock Analysis

Analysts Are Updating Their Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) Estimates After Its Yearly Results

Published
SASE:4013

Shareholders might have noticed that Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) filed its annual result this time last week. The early response was not positive, with shares down 2.7% to ر.س290 in the past week. Dr. Sulaiman Al Habib Medical Services Group reported ر.س11b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ر.س6.62 beat expectations, being 3.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Dr. Sulaiman Al Habib Medical Services Group

SASE:4013 Earnings and Revenue Growth February 21st 2025

Taking into account the latest results, the current consensus from Dr. Sulaiman Al Habib Medical Services Group's eight analysts is for revenues of ر.س13.4b in 2025. This would reflect a solid 20% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 9.8% to ر.س7.26. In the lead-up to this report, the analysts had been modelling revenues of ر.س13.5b and earnings per share (EPS) of ر.س7.52 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ر.س312, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Dr. Sulaiman Al Habib Medical Services Group at ر.س360 per share, while the most bearish prices it at ر.س245. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Dr. Sulaiman Al Habib Medical Services Group's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 15% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dr. Sulaiman Al Habib Medical Services Group to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ر.س312, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Dr. Sulaiman Al Habib Medical Services Group analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Dr. Sulaiman Al Habib Medical Services Group (including 1 which is potentially serious) .

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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.