Why Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) Could Be Worth Watching

Let's talk about the popular Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the SASE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Dr. Sulaiman Al Habib Medical Services Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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

What Is Dr. Sulaiman Al Habib Medical Services Group Worth?

According to my valuation model, Dr. Sulaiman Al Habib Medical Services Group seems to be fairly priced at around 16.37% above my intrinsic value, which means if you buy Dr. Sulaiman Al Habib Medical Services Group today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth SAR187.34, there’s only an insignificant downside when the price falls to its real value. In addition to this, Dr. Sulaiman Al Habib Medical Services Group has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Dr. Sulaiman Al Habib Medical Services Group generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 28% over the next couple of years, the future seems bright for Dr. Sulaiman Al Habib Medical Services Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? 4013’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on 4013, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Dr. Sulaiman Al Habib Medical Services Group from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Dr. Sulaiman Al Habib Medical Services Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.