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SHL Finance Company (1183) Fair Value & Analysis

Financial Services · SA · Market cap 1.4B SAR

SF SHL Finance Company 1183 · SR
Price14.49 SAR
Fair Value7.71 SAR
Upside-46.8%
Quality51/100
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Expensive Growth
Highly profitable · 26.1% net margin
High debt · negative free cash flow
3.47% dividend yield
Mixed vs. peers (6/13)
Moderate moat 63/100
Evidence: High Range 4.94 SAR – 9.64 SAR Share as image

Fair value as of: Aug 13, 2026

From 8 valuation models · updated 3 days ago

Share price −4.7% over the past month.

A solid business, but screening 47% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (9.64 SAR). The favourable scenario is already priced in.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (4.94 SAR to 9.64 SAR) leaves room in how you read the outcome.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (4 years)

23.10 SAR 12.87 SAR Fair Value 7.71 SAR Apr 2022 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

52‑month range 12.87 SAR – 23.10 SAR · fair‑value band 4.94 SAR – 9.64 SAR · the 14.49 SAR price screens above the 7.71 SAR fair value. Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

SHL Finance Company (1183) currently trades at 14.49 SAR, while our model-based Fair Value estimate is 7.71 SAR, implying the stock looks roughly 46.8% overvalued today. The Quality Score stands at 51/100 (solid 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, SHL Finance Company generated revenue of 212M SAR at a net margin of 26.1%. Revenue grew 35.3% year over year. It earns a return on equity of 3.2%. Net debt stands at 2.8B SAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from 4.94 SAR (bear case) to 9.64 SAR (bull case); at 14.49 SAR, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 38% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -35% fair-value upside, at -47%, 1183 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income 11.94 SAR 11.54 SAR 9.15 SAR 76
Gordon GGM 3.88 SAR 7.00 SAR 9.64 SAR 70
P/E Multiple 4.94 SAR 6.59 SAR 8.23 SAR 63
All 8 models by family
Earnings-Based
Graham-Dodd 3.45 SAR 9.29 SAR 12.16 SAR 54
Lynch FV 1.82 SAR 2.59 SAR 3.37 SAR 50
Dividend Discount
Gordon GGM 3.88 SAR 7.00 SAR 9.64 SAR 70
DDM Multi-Stage 3.88 SAR 5.70 SAR 7.37 SAR 61
Multiples
P/E Multiple 4.94 SAR 6.59 SAR 8.23 SAR 63
P/B Multiple 6.46 SAR 8.61 SAR 10.77 SAR 55
Asset-Based
NCAV (Graham) 8.69 SAR 11.64 SAR 17.38 SAR 50
Economic Profit
Residual Income 11.94 SAR 11.54 SAR 9.15 SAR 76

Widest divergence: Asset-Based (11.64 SAR) versus Earnings-Based (2.59 SAR). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 212M SAR
Revenue growth (YoY) +35.3%
Net margin 26.1%
Return on equity 3.2%
Free cash flow −412M SAR FY2025
P/E ratio 25.9
More key figures
Operating margin 36.8%
EPS (TTM) 0.5600 SAR
Dividend yield 3.5%
EPS growth (YoY) +33.5%
Net debt 2.8B SAR FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 42 · Market factors (momentum, volatility) 39

Profitability 24
Margins and returns on capital today
Quality Growth 75
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

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

SHL Finance Company operates as a real estate finance company in the Kingdom of Saudi Arabia. The company engages in financing the purchasing of houses, residential lands, and apartments; financing of real estate properties; and financing the establishment of commercial and industrial projects.

Full company description

SHL Finance Company operates as a real estate finance company in the Kingdom of Saudi Arabia. The company engages in financing the purchasing of houses, residential lands, and apartments; financing of real estate properties; and financing the establishment of commercial and industrial projects. The company was formerly known as Saudi Home Loans Company and changed its name to SHL Finance Company in February 2023. SHL Finance Company was founded in 2007 and is based 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

SHL Finance Company reported revenue of 407M SAR in FY2025 versus 289M SAR in FY2021, a compound +9.0%/yr. Reported net income was 50.7M SAR in FY2025, compounding −16.3%/yr from FY2021.

Growth Quality 45/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
407M SAR
Latest YoY
+14.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.2%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.2%
Revenue +9.0%/yr
FY21 289M SAR
FY22 296M SAR
FY23 300M SAR
FY24 354M SAR
FY25 407M SAR
Net income −16.3%/yr
FY21 103M SAR
FY22 95.9M SAR
FY23 2.3M SAR
FY24 26.5M SAR
FY25 50.7M SAR
Character of growth · EPS growth decomposed (2014-2025) −16.8 % p.a.
Revenue per share +2.0 pp

of which total revenue +4.6 pp · buybacks/dilution −2.6 pp

EBIT margin +6.1 pp
Tax rate +5.6 pp
Residual (interest, one-offs) −30.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

1183 screens 47% overvalued. Compare with Federal Home Loan Mortgage Corporation →

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Cite: Fair Value Calculator (2026). "SHL Finance Company Fair Value". https://www.fairvalue-calculator.com/stock/1183

Peer Group

Mortgage Finance · 91 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Below median
Fair Value upside −47% · Below median
Return on equity (TTM) 3% · Bottom 25%
Return on assets 1% · Above median
Net margin (TTM) 26% · Below median
Operating margin (TTM) 37% · Below median
Revenue growth 35% · Top 25%
Dividend yield (TTM) 3.5% · Below median
Debt / equity 1.53× · Lower than median

Valuation Multiples vs Mortgage Finance median · lower = cheaper

P/E (TTM) 25.9× · Pricier than median
P/B 0.22× · Cheaper than median
P/S (TTM) 1.80× · Cheaper than median
EV/EBITDA 11.1× · Cheaper than median

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 0 · sector 0
FUTURE 100 · sector 79
PAST 13 · sector 55
HEALTH 24 · sector 0
DIVIDEND 69 · sector 100

VALUE 0: the price sits above our fair-value range.

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 Mortgage Finance stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is SHL Finance Company (1183) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 7.71 SAR versus a price of 14.49 SAR, about −47% (overvalued).
What is the fair value of 1183?
Our model-based fair value for SHL Finance Company is 7.71 SAR (as of Aug 13, 2026), built from audited fundamentals. The current price is 14.49 SAR.
What is the quality score of 1183?
SHL Finance Company has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of SHL Finance Company (1183)?
SHL Finance Company reported trailing-twelve-month revenue of about 212M SAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1183?
The net profit margin of SHL Finance Company is about 26.1%, meaning it keeps roughly 26.1% of revenue as net income. Based on the latest reported figures.
Does SHL Finance Company pay a dividend?
SHL Finance Company currently shows a dividend yield of about 3.47% relative to its recent price (as of Aug 13, 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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