Saudi Aramco Base Oil Company - Luberef

SASE:2223 Stock Report

Market Cap: ر.س18.7b

Saudi Aramco Base Oil Company - Luberef Valuation

Is 2223 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2223 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2223 (SAR110.8) is trading below our estimate of fair value (SAR167.73)

Significantly Below Fair Value: 2223 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2223?

Key metric: As 2223 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2223. This is calculated by dividing 2223's market cap by their current earnings.
What is 2223's PE Ratio?
PE Ratio18.1x
Earningsر.س1.03b
Market Capر.س18.70b

Price to Earnings Ratio vs Peers

How does 2223's PE Ratio compare to its peers?

The above table shows the PE ratio for 2223 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average66.9x
2310 Sahara International Petrochemical
31x35.9%ر.س17.5b
2250 Saudi Industrial Investment Group
63.2x47.6%ر.س12.7b
2290 Yanbu National Petrochemical
44.3x27.8%ر.س21.0b
2060 National Industrialization
129x33.4%ر.س6.8b
2223 Saudi Aramco Base Oil Company - Luberef
18.1x20.8%ر.س18.7b

Price-To-Earnings vs Peers: 2223 is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (66.9x).

Price to Earnings Ratio vs Industry

How does 2223's PE Ratio compare vs other companies in the Asian Chemicals Industry?

42 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2223 18.1xIndustry Avg. 23.5xNo. of Companies180PE020406080100+
42 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2223 is good value based on its Price-To-Earnings Ratio (18.1x) compared to the Asian Chemicals industry average (23.5x).

Price to Earnings Ratio vs Fair Ratio

What is 2223'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.

2223 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ratio29.5x

Price-To-Earnings vs Fair Ratio: 2223 is good value based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (29.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2223 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentر.س110.80
ر.س133.08
+20.1%
9.0%ر.س151.40ر.س119.00n/a5
Dec ’25ر.س110.60
ر.س136.58
+23.5%
11.2%ر.س156.50ر.س119.00n/a5
Nov ’25ر.س117.20
ر.س144.58
+23.4%
6.3%ر.س156.50ر.س133.00n/a5
Oct ’25ر.س132.00
ر.س146.08
+10.7%
6.0%ر.س159.00ر.س135.00n/a5
Sep ’25ر.س133.60
ر.س146.98
+10.0%
6.9%ر.س163.50ر.س135.00n/a5
Aug ’25ر.س129.60
ر.س152.78
+17.9%
6.5%ر.س164.00ر.س138.00n/a5
Jul ’25ر.س130.60
ر.س151.78
+16.2%
5.9%ر.س164.00ر.س138.00n/a5
Jun ’25ر.س130.20
ر.س152.70
+17.3%
8.0%ر.س166.00ر.س132.50n/a5
May ’25ر.س149.40
ر.س152.70
+2.2%
8.0%ر.س166.00ر.س132.50n/a5
Apr ’25ر.س157.40
ر.س148.10
-5.9%
10.1%ر.س166.00ر.س131.00n/a5
Mar ’25ر.س168.00
ر.س137.50
-18.2%
4.2%ر.س147.00ر.س131.00n/a5
Feb ’25ر.س146.80
ر.س138.75
-5.5%
4.2%ر.س147.00ر.س131.00n/a4
Jan ’25ر.س145.00
ر.س135.50
-6.6%
2.5%ر.س140.00ر.س131.00n/a4
Dec ’24ر.س137.20
ر.س134.70
-1.8%
2.3%ر.س140.00ر.س131.00ر.س110.605
Nov ’24ر.س130.20
ر.س133.60
+2.6%
1.3%ر.س136.00ر.س131.00ر.س117.205
Oct ’24ر.س149.00
ر.س132.60
-11.0%
1.1%ر.س134.50ر.س131.00ر.س132.005
Sep ’24ر.س146.40
ر.س132.60
-9.4%
1.1%ر.س134.50ر.س131.00ر.س133.605
Aug ’24ر.س148.40
ر.س125.80
-15.2%
8.6%ر.س134.50ر.س105.00ر.س129.605
Jul ’24n/a
ر.س123.30
0%
8.7%ر.س134.50ر.س105.00ر.س130.605
Jun ’24ر.س131.60
ر.س121.00
-8.1%
9.0%ر.س134.50ر.س105.00ر.س130.204
May ’24ر.س114.80
ر.س112.75
-1.8%
4.0%ر.س116.00ر.س105.00ر.س149.404
Apr ’24ر.س111.40
ر.س112.75
+1.2%
4.0%ر.س116.00ر.س105.00ر.س157.404
Mar ’24ر.س107.40
ر.س112.75
+5.0%
4.0%ر.س116.00ر.س105.00ر.س168.004
Feb ’24ر.س98.60
ر.س111.50
+13.1%
2.2%ر.س114.00ر.س109.00ر.س146.802

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 23:40
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Saudi Aramco Base Oil Company - Luberef is covered by 8 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mazen Al-SudairiAl Rajhi Capital
Madhu AppissaAl Rajhi Capital
Oliver ConnorCitigroup Inc