Is Now An Opportune Moment To Examine Saudi Company for Hardware SACO (TADAWUL:4008)?

While Saudi Company for Hardware SACO (TADAWUL:4008) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the SASE, rising to highs of ر.س37.00 and falling to the lows of ر.س25.25. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Saudi Company for Hardware SACO's current trading price of ر.س25.25 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Saudi Company for Hardware SACO’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Saudi Company for Hardware SACO

What's The Opportunity In Saudi Company for Hardware SACO?

According to my valuation model, Saudi Company for Hardware SACO seems to be fairly priced at around 0.07% above my intrinsic value, which means if you buy Saudi Company for Hardware SACO today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth SAR25.23, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Saudi Company for Hardware SACO’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Saudi Company for Hardware SACO 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 83% over the next year, the near-term future seems bright for Saudi Company for Hardware SACO. 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? It seems like the market has already priced in 4008’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on 4008, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Saudi Company for Hardware SACO, 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.