Is It Time To Consider Buying Saudi Company for Hardware (TADAWUL:4008)?

Saudi Company for Hardware (TADAWUL:4008), is not the largest company out there, but it saw significant share price movement during recent months on the SASE, rising to highs of ر.س39.30 and falling to the lows of ر.س29.55. 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's current trading price of ر.س29.55 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’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Saudi Company for Hardware

What Is Saudi Company for Hardware Worth?

According to my valuation model, Saudi Company for Hardware seems to be fairly priced at around 3.6% below my intrinsic value, which means if you buy Saudi Company for Hardware today, you’d be paying a reasonable price for it. And if you believe the company’s true value is SAR30.67, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Saudi Company for Hardware’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 generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. In Saudi Company for Hardware's case, its revenues over the next few years are expected to grow by 42%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on 4008, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Saudi Company for Hardware from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

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