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Al Rajhi Banking and Investment Corporation (1120) Fair Value & Analysis

Financial Services · SA · Market cap 376B SAR

AR Al Rajhi Banking and Investment Corporation 1120 · SR
Price62.55 SAR
Fair Value53.72 SAR
Upside-14.1%
Quality49/100
Expensive Growth
Highly profitable · 68.0% net margin
negative free cash flow
1.88% dividend yield
Ranks above peers (8/12)
Wide moat 77/100
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Evidence: High Range 40.29 SAR – 67.14 SAR Share as image

Fair value as of: Jul 30, 2026

From 17 valuation models · updated today

Share price −5.1% over the past month.

What matters now

  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (12 months)

72.14 SAR 58.59 SAR Fair Value 53.72 SAR May 2025 Jul 2026

12‑month range 58.59 SAR – 72.14 SAR · fair‑value band 40.29 SAR – 67.14 SAR · the 62.55 SAR price screens above the 53.72 SAR fair value. As of Jul 30, 2026.

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Analysis

Al Rajhi Banking and Investment Corporation (1120) currently trades at 62.55 SAR, while our model-based Fair Value estimate is 53.72 SAR, implying the stock looks roughly 14.1% overvalued today. We read business quality at 49/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Al Rajhi Banking and Investment Corporation generated revenue of 39.0B SAR at a net margin of 68.0%. Revenue grew 11.1% year over year. It earns a return on equity of 18.5%. The balance sheet holds a net cash position of 1.2B SAR. Fundamentals as of Jul 30, 2026

Our scenario range runs from 40.29 SAR (bear case) to 67.14 SAR (bull case); at 62.55 SAR, the current price sits within that range. The share trades about 16% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 31% fair-value upside, at -14%, 1120 screens richer than that median.

Key figures & financial health

Revenue (TTM) 39.0B SAR
Revenue growth (YoY) +11.1%
Net margin 68.0%
Return on equity 18.5%
Free cash flow −25.9B SAR FY2025
P/E ratio 15.6
More key figures
Operating margin 76.1%
EPS (TTM) 4.02 SAR
Dividend yield 1.9%
EPS growth (YoY) +23.5%
Net cash 1.2B SAR FY2025

Figures from reported company fundamentals · as of Jul 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100
Profitability 41
Quality Growth 44
Cashflow 0
Fin. Strength 26
Investment 55
Low Volatility 94
Momentum 37
52W Momentum 31
Net Issuance 82

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, provides banking and investment services in the Kingdom of Saudi Arabia and internationally. The company operates through four segments: Retail; Corporate; Treasury; and Investment Services, Brokerage, and Other.

Full company description

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, provides banking and investment services in the Kingdom of Saudi Arabia and internationally. The company operates through four segments: Retail; Corporate; Treasury; and Investment Services, Brokerage, and Other. It offers current, dependent, hassad, family, future, million, and smart saving accounts; personal, auto, real estate, fleet, payroll, POS finance, e- commerce, contract, equipment, and invoice financing; credit, prepaid, charge credit, cashback, business, corporate, and miles cards; motor, travel, saving and protection programs, family protection, home, single premium, medical malpractice, domestic helper, visit visa, cyber, private pension plan, and employee fidelity, engineering, premium medical, marine, medical, cash in transit, liability, machinery breakdown, and property insurances; and cash management services. The company also provides ATM facilities; and investments of individuals and corporates in mutual funds, local and international share trading services, investment portfolios, and others. In addition, it offers letter of guarantee, documentary collection, supply chain finance, and letter of credit services. Al Rajhi Banking and Investment Corporation was founded in 1957 and is headquartered in Riyadh, the Kingdom of Saudi Arabia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Al Rajhi Banking and Investment Corporation reported revenue of 71.8B SAR in FY2025 versus 25.6B SAR in FY2021, a compound +29.4%/yr. Reported net income was 24.8B SAR in FY2025, compounding +13.9%/yr from FY2021.

Revenue +29.4%/yr
FY21 25.6B SAR
FY22 28.6B SAR
FY23 27.4B SAR
FY24 31.9B SAR
FY25 71.8B SAR
Net income +13.9%/yr
FY21 14.7B SAR
FY22 17.2B SAR
FY23 16.6B SAR
FY24 19.7B SAR
FY25 24.8B SAR

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Cite: Fair Value Calculator (2026). "Al Rajhi Banking and Investment Corporation Fair Value". https://www.fairvalue-calculator.com/stock/1120

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 15 / 39
FUTURE 56 / 44
PAST 74 / 40
HEALTH 0 / 84
DIVIDEND 38 / 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 30, 2026).

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Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 98,200 KRW 119,210 KRW +21%
Hana Financial Group 086790 123,600 KRW 112,429 KRW -9%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 178.10 CLP 92.69 CLP -48%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 61,700 VND 63,824 VND +3%

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Frequently asked questions

Is Al Rajhi Banking and Investment Corporation (1120) overvalued or undervalued?
As of Jul 30, 2026, our model estimates a fair value of 53.72 SAR versus a price of 62.55 SAR, about −14% (overvalued).
What is the fair value of 1120?
Our model-based fair value for Al Rajhi Banking and Investment Corporation is 53.72 SAR (as of Jul 30, 2026), built from audited fundamentals. The current price is 62.55 SAR.
What is the quality score of 1120?
Al Rajhi Banking and Investment Corporation has a Quality Score of 49/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Al Rajhi Banking and Investment Corporation (1120)?
Al Rajhi Banking and Investment Corporation reported trailing-twelve-month revenue of about 39.0B SAR (latest available figure, as of Jul 30, 2026).
What is the net profit margin of 1120?
The net profit margin of Al Rajhi Banking and Investment Corporation is about 68.0%, meaning it keeps roughly 68.0% of revenue as net income. Based on the latest reported figures.
Does Al Rajhi Banking and Investment Corporation pay a dividend?
Al Rajhi Banking and Investment Corporation currently shows a dividend yield of about 1.88% relative to its recent price (as of Jul 30, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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