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1202

Middle East Company for Manufacturing and Producing Paper SASE:1202 Stock Report

Last Price

ر.س57.00

Market Cap

ر.س2.9b

7D

-2.9%

1Y

76.7%

Updated

26 Jun, 2022

Data

Company Financials
1202 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends2/6

1202 Stock Overview

Middle East Company for Manufacturing and Producing Paper, together with its subsidiaries, produces and sells container boards and industrial papers in the Kingdom of Saudi Arabia, the Middle East, Africa, Asia, and Europe.

Rewards

Trading at 63.3% below our estimate of its fair value

Earnings grew by 774.6% over the past year

Risk Analysis

No risks detected for 1202 from our risk checks.

Middle East Company for Manufacturing and Producing Paper Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Middle East Company for Manufacturing and Producing Paper
Historical stock prices
Current Share Priceر.س57.00
52 Week Highر.س65.10
52 Week Lowر.س29.55
Beta0.77
1 Month Change-7.02%
3 Month Change-0.87%
1 Year Change76.74%
3 Year Change266.32%
5 Year Change302.26%
Change since IPO25.69%

Recent News & Updates

Apr 21
Should You Be Adding Middle East Company for Manufacturing and Producing Paper (TADAWUL:1202) To Your Watchlist Today?

Should You Be Adding Middle East Company for Manufacturing and Producing Paper (TADAWUL:1202) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Mar 17
Returns At Middle East Company for Manufacturing and Producing Paper (TADAWUL:1202) Are On The Way Up

Returns At Middle East Company for Manufacturing and Producing Paper (TADAWUL:1202) Are On The Way Up

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

1202SA ForestrySA Market
7D-2.9%0.01%-3.6%
1Y76.7%-12.9%11.1%

Return vs Industry: 1202 exceeded the SA Forestry industry which returned -12.9% over the past year.

Return vs Market: 1202 exceeded the SA Market which returned 11.1% over the past year.

Price Volatility

Is 1202's price volatile compared to industry and market?
1202 volatility
1202 Average Weekly Movement3.6%
Forestry Industry Average Movement6.0%
Market Average Movement4.8%
10% most volatile stocks in SA Market7.0%
10% least volatile stocks in SA Market3.1%

Stable Share Price: 1202 is less volatile than 75% of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1202's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000n/aSami Ali Al-Safranhttps://www.mepco.biz

Middle East Company for Manufacturing and Producing Paper, together with its subsidiaries, produces and sells container boards and industrial papers in the Kingdom of Saudi Arabia, the Middle East, Africa, Asia, and Europe. The company operates through two segments, Manufacturing and Trading. It provides MEPFLUTE high performance fluting, MEPLINER test liner, MEPDUAL dual use, MEPKRAFT Kraft liner board, and MEPWHITE white top test liner products for use in beverages, consumer durables, detergents, industrial goods, and processed food industries.

Middle East Company for Manufacturing and Producing Paper Fundamentals Summary

How do Middle East Company for Manufacturing and Producing Paper's earnings and revenue compare to its market cap?
1202 fundamental statistics
Market Capر.س2.85b
Earnings (TTM)ر.س295.37m
Revenue (TTM)ر.س1.16b

9.6x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1202 income statement (TTM)
Revenueر.س1.16b
Cost of Revenueر.س673.18m
Gross Profitر.س488.72m
Other Expensesر.س193.34m
Earningsر.س295.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.91
Gross Margin42.06%
Net Profit Margin25.42%
Debt/Equity Ratio41.9%

How did 1202 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

17%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1202 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1202?

Other financial metrics that can be useful for relative valuation.

1202 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA7.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1202's PE Ratio compare to its peers?

1202 PE Ratio vs Peers
The above table shows the PE ratio for 1202 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.5x

Price-To-Earnings vs Peers: 1202 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (23.5x).


Price to Earnings Ratio vs Industry

How does 1202's PE Ratio compare vs other companies in the Forestry Industry?

Price-To-Earnings vs Industry: 1202 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the Asian Forestry industry average (11.9x)


Price to Earnings Ratio vs Fair Ratio

What is 1202's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1202 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1202's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1202 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1202 (SAR57) is trading below our estimate of fair value (SAR155.49)

Significantly Below Fair Value: 1202 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1202's PEG Ratio to determine if it is good value.


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Future Growth

How is Middle East Company for Manufacturing and Producing Paper forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.3%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Middle East Company for Manufacturing and Producing Paper has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Middle East Company for Manufacturing and Producing Paper is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Middle East Company for Manufacturing and Producing Paper performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1202 has high quality earnings.

Growing Profit Margin: 1202's current net profit margins (25.4%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 1202's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: 1202's earnings growth over the past year (774.6%) exceeds its 5-year average (22.7% per year).

Earnings vs Industry: 1202 earnings growth over the past year (774.6%) exceeded the Forestry industry 19.9%.


Return on Equity

High ROE: 1202's Return on Equity (27.5%) is considered high.


Discover strong past performing companies

Financial Health

How is Middle East Company for Manufacturing and Producing Paper's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1202's short term assets (SAR664.9M) exceed its short term liabilities (SAR269.2M).

Long Term Liabilities: 1202's short term assets (SAR664.9M) exceed its long term liabilities (SAR427.1M).


Debt to Equity History and Analysis

Debt Level: 1202's net debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: 1202's debt to equity ratio has reduced from 110.5% to 41.9% over the past 5 years.

Debt Coverage: 1202's debt is well covered by operating cash flow (76.8%).

Interest Coverage: 1202's interest payments on its debt are well covered by EBIT (22.9x coverage).


Balance Sheet


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Dividend

What is Middle East Company for Manufacturing and Producing Paper current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1202's dividend (1.75%) isn’t notable compared to the bottom 25% of dividend payers in the SA market (1.96%).

High Dividend: 1202's dividend (1.75%) is low compared to the top 25% of dividend payers in the SA market (4.67%).


Stability and Growth of Payments

Stable Dividend: 1202 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1202's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.9%), 1202's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.3%), 1202's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Sami Ali Al-Safran

10.42yrs

Tenure

Mr. Sami Ali Youssef Al-Safran serves as the Chief Executive Officer and Group President at Middle East Company for Manufacturing and Producing Paper since 2012 and since April 2022 respectively. From 2005...


Leadership Team

Experienced Management: 1202's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1202's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Middle East Company for Manufacturing and Producing Paper's employee growth, exchange listings and data sources


Key Information

  • Name: Middle East Company for Manufacturing and Producing Paper
  • Ticker: 1202
  • Exchange: SASE
  • Founded: 2000
  • Industry: Paper Products
  • Sector: Materials
  • Implied Market Cap: ر.س2.850b
  • Shares outstanding: 50.00m
  • Website: https://www.mepco.biz

Location

  • Middle East Company for Manufacturing and Producing Paper
  • Nujood Center
  • 1st floor, entrance (A) Unit No (45)
  • Jeddah
  • 23326
  • Saudi Arabia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/23 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.