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Saudi Ceramic Company (2040) Fair Value & Analysis

Industrials · SA · Market cap 2.4B SAR

SC Saudi Ceramic Company 2040 · SR
Price24.06 SAR
Fair Value14.23 SAR
Upside-40.9%
Quality42/100
Weak Growth
Solidly profitable · 12.2% net margin
Low debt · negative free cash flow
4.21% dividend yield
Mixed vs. peers (7/12)
Narrow moat 37/100
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Evidence: High Range 12.16 SAR – 27.71 SAR Share as image

Fair value as of: Jul 31, 2026

From 15 valuation models · updated today

Share price −9.9% over the past month.

What matters now

  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (12.16 SAR to 27.71 SAR) leaves room in how you read the outcome.

Price vs Fair Value (12 months)

32.76 SAR 23.74 SAR Fair Value 14.23 SAR Jun 2025 Jul 2026

12‑month range 23.74 SAR – 32.76 SAR · fair‑value band 12.16 SAR – 27.71 SAR · the 24.06 SAR price screens above the 14.23 SAR fair value. As of Jul 31, 2026.

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Analysis

Saudi Ceramic Company (2040) currently trades at 24.06 SAR, while our model-based Fair Value estimate is 14.23 SAR, implying the stock looks roughly 40.9% overvalued today. We read business quality at 42/100 (below-average quality), in the Industrials 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, Saudi Ceramic Company generated revenue of 1.5B SAR at a net margin of 12.2%. Revenue declined 0.4% year over year. It earns a return on equity of 12.2%. Net debt stands at 802M SAR. Fundamentals as of Jul 31, 2026

Our scenario range runs from 12.16 SAR (bear case) to 27.71 SAR (bull case); at 24.06 SAR, the current price sits within that range. The share trades about 26% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -58% fair-value upside, at -41%, 2040 screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 1.5B SAR
Revenue growth (YoY) -0.4%
Net margin 12.2%
Return on equity 12.2%
Free cash flow −25.1M SAR FY2025
P/E ratio 13.2
More key figures
Operating margin 8.1%
EPS (TTM) 1.82 SAR
Dividend yield 4.2%
EPS growth (YoY) +6.1%
Net debt 802M SAR FY2025

Figures from reported company fundamentals · as of Jul 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100
Profitability 42
Quality Growth 83
Cashflow 10
Fin. Strength 47
Investment 92
Low Volatility 85
Momentum 26
52W Momentum 11
Net Issuance 0

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

Saudi Ceramic Company engages in the production and sale of ceramic products, water heaters, and related component in Saudi Arabia and internationally.

Full company description

Saudi Ceramic Company engages in the production and sale of ceramic products, water heaters, and related component in Saudi Arabia and internationally. The company offers ceramic, porcelain, outdoor, and swimming pool tiles; sanitary ware products comprising wash basins, water closets, wall hangings, and above counters; bathroom furniture and accessories, including bathtubs, shower trays, taps, and seat covers; red bricks; bathroom fixtures and finishes; and industrial minerals, such as limestone, silica sands, kaolin, feldspar, clay, dolomite, and calcite. It also sells its products online. The company was founded in 1977 and is headquartered in Riyadh, Saudi Arabia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Saudi Ceramic Company reported revenue of 1.5B SAR in FY2025 versus 1.5B SAR in FY2021, a compound −0.7%/yr. Reported net income was 181M SAR in FY2025, compounding −6.2%/yr from FY2021.

Revenue −0.7%/yr
FY21 1.5B SAR
FY22 1.5B SAR
FY23 1.3B SAR
FY24 1.3B SAR
FY25 1.5B SAR
Net income −6.2%/yr
FY21 234M SAR
FY22 174M SAR
FY23 −210M SAR
FY24 −71.9M SAR
FY25 181M SAR

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Cite: Fair Value Calculator (2026). "Saudi Ceramic Company Fair Value". https://www.fairvalue-calculator.com/stock/2040

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 / 0
FUTURE 0 / 9
PAST 49 / 23
HEALTH 92 / 94
DIVIDEND 84 / 25

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 Building Products & Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 31, 2026).

Stock Price Fair Value vs Fair Value
Trane Technologies plc TT $456.84 $192.91 -58%
Johnson Controls International plc JCI $148.21 $39.05 -74%
Carrier Global Corporation CARR $67.97 $16.28 -76%
Compagnie de Saint-Gobain S.A CODGF $89.95 $106.78 +19%
Daikin Industries,Ltd. DKILF $149.65 $113.38 -24%
Geberit AG GBERF $661.46 $347.91 -47%
Lennox International Inc LII $516.37 $225.11 -56%
Kingspan Group KRX €87.30 €36.86 -58%
Masco Corporation MAS 1,559 MXN 51.45 MXN -97%
BELIMO Holding BLMOY $11.78 $3.43 -71%

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Frequently asked questions

Is Saudi Ceramic Company (2040) overvalued or undervalued?
As of Jul 31, 2026, our model estimates a fair value of 14.23 SAR versus a price of 24.06 SAR, about −41% (overvalued).
What is the fair value of 2040?
Our model-based fair value for Saudi Ceramic Company is 14.23 SAR (as of Jul 31, 2026), built from audited fundamentals. The current price is 24.06 SAR.
What is the quality score of 2040?
Saudi Ceramic Company has a Quality Score of 42/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Saudi Ceramic Company (2040)?
Saudi Ceramic Company reported trailing-twelve-month revenue of about 1.5B SAR (latest available figure, as of Jul 31, 2026).
What is the net profit margin of 2040?
The net profit margin of Saudi Ceramic Company is about 12.2%, meaning it keeps roughly 12.2% of revenue as net income. Based on the latest reported figures.
Does Saudi Ceramic Company pay a dividend?
Saudi Ceramic Company currently shows a dividend yield of about 4.21% relative to its recent price (as of Jul 31, 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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