Stock Analysis

Fawaz Abdulaziz Al Hokair & Company's (TADAWUL:4240) market cap dropped ر.س255m last week; Private companies bore the brunt

  •  Updated
SASE:4240
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If you want to know who really controls Fawaz Abdulaziz Al Hokair & Company (TADAWUL:4240), then you'll have to look at the makeup of its share registry. With 48% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 11% decline in share price, private companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Fawaz Abdulaziz Al Hokair.

However if you'd rather see where the opportunities and risks are within 4240's industry, you can check out our analysis on the SA Specialty Retail industry.

ownership-breakdown
SASE:4240 Ownership Breakdown September 25th 2022

What Does The Institutional Ownership Tell Us About Fawaz Abdulaziz Al Hokair?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Less than 5% of Fawaz Abdulaziz Al Hokair is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
SASE:4240 Earnings and Revenue Growth September 25th 2022

Hedge funds don't have many shares in Fawaz Abdulaziz Al Hokair. The company's largest shareholder is FAS Saudi Holding Company, with ownership of 48%. The second and third largest shareholders are Fawaz Abdulaziz Al-Hokair and Salman Abdulaziz Al-Hokair, with an equal amount of shares to their name at 7.0%.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Fawaz Abdulaziz Al Hokair

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Fawaz Abdulaziz Al Hokair & Company. Insiders own ر.س418m worth of shares in the ر.س2.0b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Fawaz Abdulaziz Al Hokair. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 48%, of the Fawaz Abdulaziz Al Hokair stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Fawaz Abdulaziz Al Hokair (including 1 which doesn't sit too well with us) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Valuation is complex, but we're helping make it simple.

Find out whether Fawaz Abdulaziz Al Hokair is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About SASE:4240

Fawaz Abdulaziz Al Hokair

Fawaz Abdulaziz Al Hokair & Company, together with its subsidiaries, operates as a franchise retailer of fashion products in the Kingdom of Saudi Arabia, Jordan, Egypt, the Republic of Kazakhstan, the United States, the Republic of Azerbaijan, Georgia, Armenia, and Morocco.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation0
Future Growth4
Past Performance3
Financial Health1
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Reasonable growth potential with acceptable track record.