Saudi Pharmaceutical Industries and Medical Appliances Corporation

SASE:2070 Stock Report

Market Cap: ر.س3.7b

Saudi Pharmaceutical Industries and Medical Appliances Valuation

Is 2070 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2070 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2070 (SAR31.1) is trading below our estimate of fair value (SAR41.42)

Significantly Below Fair Value: 2070 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2070?

Key metric: As 2070 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2070. This is calculated by dividing 2070's market cap by their current revenue.
What is 2070's PS Ratio?
PS Ratio2.3x
Salesر.س1.63b
Market Capر.س3.73b

Price to Sales Ratio vs Peers

How does 2070's PS Ratio compare to its peers?

The above table shows the PS ratio for 2070 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.5x
4016 Middle East Pharmaceutical Industries
6.3x13.0%ر.س2.5b
4015 Jamjoom Pharmaceuticals Factory
8.5x12.0%ر.س10.8b
601089 Beijing Foyou PharmaLTD
2.1xn/aCN¥7.3b
PAHC Phibro Animal Health
0.9x2.7%US$961.6m
2070 Saudi Pharmaceutical Industries and Medical Appliances
2.3x9.6%ر.س3.7b

Price-To-Sales vs Peers: 2070 is good value based on its Price-To-Sales Ratio (2.3x) compared to the peer average (4.5x).

Price to Sales Ratio vs Industry

How does 2070's PS Ratio compare vs other companies in the Asian Pharmaceuticals Industry?

48 CompaniesPrice / SalesEstimated GrowthMarket Cap
2070 2.3xIndustry Avg. 2.6xNo. of Companies87PS0246810+
48 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2070 is good value based on its Price-To-Sales Ratio (2.3x) compared to the Asian Pharmaceuticals industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

What is 2070's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2070 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.3x
Fair PS Ratio4.3x

Price-To-Sales vs Fair Ratio: 2070 is good value based on its Price-To-Sales Ratio (2.3x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).

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 2070 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentر.س31.10
ر.س33.36
+7.3%
7.5%ر.س37.00ر.س30.30n/a5
Nov ’25ر.س33.50
ر.س33.36
-0.4%
7.5%ر.س37.00ر.س30.30n/a5
Oct ’25ر.س34.80
ر.س33.36
-4.1%
7.5%ر.س37.00ر.س30.30n/a5
Sep ’25ر.س34.60
ر.س32.96
-4.7%
6.0%ر.س35.00ر.س30.30n/a5
Aug ’25ر.س28.35
ر.س33.33
+17.5%
8.3%ر.س37.00ر.س30.30n/a4
Jul ’25ر.س29.40
ر.س33.33
+13.4%
8.3%ر.س37.00ر.س30.30n/a4
Jun ’25ر.س31.20
ر.س36.83
+18.0%
14.4%ر.س45.00ر.س30.30n/a4
May ’25ر.س37.55
ر.س36.64
-2.4%
13.0%ر.س45.00ر.س30.30n/a5
Apr ’25ر.س34.40
ر.س34.88
+1.4%
16.6%ر.س45.00ر.س27.50n/a5
Mar ’25ر.س38.15
ر.س34.88
-8.6%
16.6%ر.س45.00ر.س27.50n/a5
Feb ’25ر.س34.15
ر.س34.88
+2.1%
16.6%ر.س45.00ر.س27.50n/a5
Jan ’25ر.س38.05
ر.س34.88
-8.3%
16.6%ر.س45.00ر.س27.50n/a5
Dec ’24ر.س36.05
ر.س34.88
-3.2%
16.6%ر.س45.00ر.س27.50n/a5
Nov ’24ر.س29.95
ر.س36.28
+21.1%
15.9%ر.س45.00ر.س27.50ر.س33.505
Oct ’24ر.س35.00
ر.س42.83
+22.4%
21.4%ر.س55.50ر.س34.00ر.س34.803
Sep ’24ر.س37.60
ر.س42.83
+13.9%
21.4%ر.س55.50ر.س34.00ر.س34.603
Aug ’24ر.س39.70
ر.س37.83
-4.7%
34.7%ر.س55.50ر.س24.00ر.س28.353
Jul ’24n/a
ر.س26.00
0%
7.7%ر.س28.00ر.س24.00ر.س29.402
Jun ’24ر.س38.75
ر.س26.00
-32.9%
7.7%ر.س28.00ر.س24.00ر.س31.202
May ’24ر.س25.20
ر.س26.00
+3.2%
7.7%ر.س28.00ر.س24.00ر.س37.552
Apr ’24ر.س23.74
ر.س26.00
+9.5%
7.7%ر.س28.00ر.س24.00ر.س34.402
Mar ’24ر.س22.06
ر.س26.00
+17.9%
7.7%ر.س28.00ر.س24.00ر.س38.152
Feb ’24ر.س23.02
ر.س27.00
+17.3%
3.7%ر.س28.00ر.س26.00ر.س34.152
Jan ’24ر.س21.90
ر.س27.00
+23.3%
3.7%ر.س28.00ر.س26.00ر.س38.052
Nov ’23ر.س25.80
ر.س31.00
+20.2%
9.7%ر.س34.00ر.س28.00ر.س29.952

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

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