Qassim Cement Valuation

Q: What is the Fair Price of 3040 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3040 (SAR51.9) is trading below our estimate of [[fair value]] (SAR75.71)

Is 3040 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 3040 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow

Simply Wall St

ر.س75.71

Fair Value

31.5% undervalued

Number of Analysts

Below Fair Value: 3040 (SAR51.9) is trading below our estimate of fair value (SAR75.71)

Significantly Below Fair Value: 3040 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3040?

Key metric: As 3040 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3040. This is calculated by dividing 3040's market cap by their current earnings.
What is 3040's PE Ratio?
PE Ratio	21.9x
Earnings	ر.س260.44m
Market Cap	ر.س5.70b

3040 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/Revenue	6.3x
Enterprise Value/EBITDA	16.2x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does 3040's PE Ratio compare to its peers?

The above table shows the PE ratio for 3040 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17.5x
3030 Saudi Cement	15.5x	3.7%	ر.س6.3b
3020 YAMAMA Cement	19.9x	6.6%	ر.س7.0b
3050 Southern Province Cement	21.1x	7.7%	ر.س4.6b
3092 Riyadh Cement	13.5x	-10.1%	ر.س3.7b
3040 Qassim Cement	21.9x	16.5%	ر.س5.7b

Price-To-Earnings vs Peers: 3040 is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the peer average (17.5x).

Price to Earnings Ratio vs Industry

How does 3040's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3040 is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the Asian Basic Materials industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is 3040'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.

3040 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.9x
Fair PE Ratio	22.2x

Price-To-Earnings vs Fair Ratio: 3040 is good value based on its Price-To-Earnings Ratio (21.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

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 3040 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	ر.س51.90	ر.س56.68 +9.2%	3.6%	ر.س58.80	ر.س54.30	n/a	4
Jan ’26	ر.س52.90	ر.س56.68 +7.1%	3.6%	ر.س58.80	ر.س54.30	n/a	4
Dec ’25	ر.س52.80	ر.س57.23 +8.4%	3.6%	ر.س58.80	ر.س54.30	n/a	3
Nov ’25	ر.س52.30	ر.س53.43 +2.2%	8.6%	ر.س58.60	ر.س46.00	n/a	4
Oct ’25	ر.س52.80	ر.س53.13 +0.6%	9.9%	ر.س58.60	ر.س46.00	n/a	3
Sep ’25	ر.س54.40	ر.س53.35 -1.9%	8.6%	ر.س58.60	ر.س46.00	n/a	4
Aug ’25	ر.س54.10	ر.س53.35 -1.4%	8.6%	ر.س58.60	ر.س46.00	n/a	4
Jul ’25	ر.س56.60	ر.س55.60 -1.8%	11.0%	ر.س64.60	ر.س46.00	n/a	5
Jun ’25	ر.س57.70	ر.س55.60 -3.6%	11.0%	ر.س64.60	ر.س46.00	n/a	5
May ’25	ر.س58.50	ر.س54.87 -6.2%	13.9%	ر.س64.60	ر.س46.00	n/a	3
Apr ’25	ر.س58.50	ر.س61.57 +5.2%	8.7%	ر.س66.10	ر.س54.00	n/a	3
Mar ’25	ر.س59.50	ر.س61.57 +3.5%	8.7%	ر.س66.10	ر.س54.00	n/a	3
Feb ’25	ر.س58.80	ر.س62.25 +5.9%	7.7%	ر.س66.10	ر.س54.00	n/a	4
Jan ’25	ر.س63.80	ر.س63.38 -0.7%	3.4%	ر.س66.10	ر.س60.00	ر.س52.90	5
Dec ’24	ر.س63.80	ر.س63.38 -0.7%	3.4%	ر.س66.10	ر.س60.00	ر.س52.80	5
Nov ’24	ر.س62.70	ر.س63.38 +1.1%	3.4%	ر.س66.10	ر.س60.00	ر.س52.30	5
Oct ’24	ر.س64.30	ر.س63.38 -1.4%	3.4%	ر.س66.10	ر.س60.00	ر.س52.80	5
Sep ’24	ر.س66.80	ر.س63.38 -5.1%	3.4%	ر.س66.10	ر.س60.00	ر.س54.40	5
Aug ’24	ر.س68.90	ر.س61.16 -11.2%	5.7%	ر.س64.60	ر.س55.00	ر.س54.10	5
Jul ’24	n/a	ر.س61.25 0%	5.2%	ر.س64.60	ر.س55.00	ر.س56.60	6
Jun ’24	ر.س70.20	ر.س60.14 -14.3%	5.1%	ر.س64.30	ر.س55.00	ر.س57.70	5
May ’24	ر.س69.80	ر.س59.10 -15.3%	4.2%	ر.س61.70	ر.س55.00	ر.س58.50	4
Apr ’24	ر.س67.30	ر.س59.10 -12.2%	4.2%	ر.س61.70	ر.س55.00	ر.س58.50	4
Mar ’24	ر.س67.50	ر.س62.46 -7.5%	11.3%	ر.س75.90	ر.س55.00	ر.س59.50	5
Feb ’24	ر.س66.30	ر.س62.46 -5.8%	11.3%	ر.س75.90	ر.س55.00	ر.س58.80	5
Jan ’24	ر.س63.60	ر.س63.66 +0.09%	13.5%	ر.س75.90	ر.س51.00	ر.س63.80	5

Analyst Price Target

Consensus Narrative from 4 Analysts

ر.س56.68

Fair Value

8.4% undervalued

Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2025/01/10 20:36
End of Day Share Price	2025/01/09 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

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.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* 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

Qassim Cement Company is covered by 16 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Jassim Al-Jubran	Aljazira Capital Company
Mazen Al-Sudairi	Al Rajhi Capital
Mohamad Haidar	Arqaam Capital Research Offshore S.A.L.