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Fourth Milling Co. (2286) Fair Value & Analysis

Consumer Defensive · SA · Market cap 2.1B SAR

FM Fourth Milling Co. 2286 · SR
Price4.05 SAR
Fair Value5.39 SAR
Upside+33.0%
Quality79/100
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Healthy Growth
Highly profitable · 30.1% net margin
generates free cash flow
6.28% dividend yield
Ranks above peers (11/13)
Wide moat 93/100
Evidence: High Range 3.70 SAR – 7.25 SAR Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from 5.85 SAR to 5.39 SAR (−7.9%) since Jul 31, 2026. Share price −1.7% over the past month.

A strong business, screening 33% undervalued on our models.

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What matters now

  • The rarer combination: high quality (79/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range (3.70 SAR to 7.25 SAR) leaves room in how you read the outcome.
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Price vs Fair Value (22 months)

4.73 SAR 3.23 SAR Fair Value 5.39 SAR Oct 2024 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

22‑month range 3.23 SAR – 4.73 SAR · fair‑value band 3.70 SAR – 7.25 SAR · the 4.05 SAR price screens below the 5.39 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Fourth Milling Co. (2286) currently trades at 4.05 SAR, while our model-based Fair Value estimate is 5.39 SAR, implying the stock looks roughly 33.0% undervalued today. The Quality Score stands at 79/100 (high quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Fourth Milling Co. generated revenue of 670M SAR at a net margin of 30.1%. Revenue grew 5.5% year over year. It earns a return on equity of 27.1%. Net debt stands at 313M SAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from 3.70 SAR (bear case) to 7.25 SAR (bull case); at 4.05 SAR, the current price sits within 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 8% below its 52-week high and 21% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 97% fair-value upside, at 33%, 2286 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 2.24 SAR 2.80 SAR 9.75 SAR 76
Growth DCF 4.66 SAR 7.58 SAR 12.12 SAR 72
Gordon GGM 1.94 SAR 3.86 SAR 5.84 SAR 70
All 16 models by family
DCF Models
FCF DCF 4.67 SAR 7.80 SAR 12.81 SAR 38
5Y Revenue Exit 3.96 SAR 6.50 SAR 9.86 SAR 39
5Y EBITDA Exit 5.45 SAR 9.47 SAR 14.40 SAR 41
10Y Revenue Exit 4.06 SAR 6.49 SAR 10.01 SAR 36
10Y EBITDA Exit 5.12 SAR 8.57 SAR 13.62 SAR 37
Dividend Discount
Gordon GGM 1.94 SAR 3.86 SAR 5.84 SAR 70
DDM Multi-Stage 1.94 SAR 3.33 SAR 4.07 SAR 61
Multiples
P/S Multiple 4.74 SAR 6.32 SAR 7.90 SAR 58
P/B Multiple 2.21 SAR 2.94 SAR 3.68 SAR 55
EV/EBIT 6.59 SAR 8.75 SAR 10.90 SAR 53
EV/EBITDA 6.42 SAR 8.52 SAR 10.62 SAR 54
EV/Revenue 3.69 SAR 5.22 SAR 6.75 SAR 43
Asset-Based
NCAV (Graham) 0.7400 SAR 0.9900 SAR 1.47 SAR 50
Growth DCF
Growth DCF 4.66 SAR 7.58 SAR 12.12 SAR 72
Rev-Margin DCF 3.96 SAR 6.48 SAR 9.62 SAR 67
Economic Profit
Residual Income 2.24 SAR 2.80 SAR 9.75 SAR 76

Widest divergence: DCF Models (7.80 SAR) versus Asset-Based (0.9900 SAR). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 670M SAR
Revenue growth (YoY) +5.5%
Net margin 30.1%
Return on equity 27.1%
Free cash flow 209M SAR FY2025
P/E ratio 10.9
More key figures
Operating margin 32.5%
EPS (TTM) 0.3700 SAR
Dividend yield 6.3%
EPS growth (YoY) +1.2%
Net debt 313M SAR FY2025

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

Quality Score breakdown

Overall quality 79/100

Of which business quality 73 · Market factors (momentum, volatility) 63

Profitability 71
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 53
Distance to the 52-week high (market factor)
Net Issuance 78
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

Fourth Milling Company engages in the production of flour, feed, bran, and wheat derivatives in the Kingdom of Saudi Arabia and internationally.

Full company description

Fourth Milling Company engages in the production of flour, feed, bran, and wheat derivatives in the Kingdom of Saudi Arabia and internationally. The company packs and mills wheat, maize, barley, flour, meal, and bulgur wheat, as well as rice, dried leguminous vegetables, and edible nuts; oats production; production of flour from rice; manufacture of flour and dough for bakeries, breakfast grain food in flakes, popcorn, starch from corn and potatoes; and corn milling. It also manufactures bread and bread products by automatic bakeries, pies, cakes, biscuits, pastry flakes, frozen bakery products, concentrated fodder, cattle fodder; making of eastern and traditional desserts, and second plant products as animal feed; preparation, milling, and pressing of animal feed; and production of salt lick stones for animal feed. In addition, the company is involved in the manufacturing non-medicinal feed additives, poultry fodder, bird fodder, pet feeds, and freight transport by road; operation of storage facilities for goods; loading and unloading of goods, animal food, and feed stores; and storage in warehouses of grain silos, flour, and agricultural products. Further, it engages in the wholesale of barley, grain, livestock feed for pharmaceutical feed additives, feed and non-medicinal feed additives, bakery products, and food and beverage; retail sale of bakery products and sugar confectionery, and barley; and trade of special and healthy food. The company was founded in 1972 and is based in Dammam, the Kingdom of Saudi Arabia. Gulf Flour Milling Industrial Company operates as a subsidiary of Gulf Flour Milling Industrial Company.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Fourth Milling Co. reported revenue of 660M SAR in FY2025 versus 336M SAR in FY2021, a compound +18.4%/yr. Reported net income was 201M SAR in FY2025, compounding +41.5%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
660M SAR
Latest YoY
+5.0%
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.
+4.5%
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.
+13.9%
Revenue +18.4%/yr
FY21 336M SAR
FY22 578M SAR
FY23 558M SAR
FY24 629M SAR
FY25 660M SAR
Net income +41.5%/yr
FY21 50.1M SAR
FY22 165M SAR
FY23 143M SAR
FY24 171M SAR
FY25 201M SAR

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Cite: Fair Value Calculator (2026). "Fourth Milling Co. Fair Value". https://www.fairvalue-calculator.com/stock/2286

Peer Group

Farm Products · 298 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 78 · Top 25%
Fair Value upside +33% · Above median
Return on equity (TTM) 27% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 30% · Top 25%
Operating margin (TTM) 33% · Top 25%
Revenue growth 6% · Above median
Dividend yield (TTM) 6.3% · Top 25%

Valuation Multiples vs Farm Products median · lower = cheaper

P/E (TTM) 10.9× · Cheaper than median
P/B 0.70× · Cheaper than median
P/S (TTM) 0.83× · Pricier than median
P/FCF 2.6× · Pricier than median
EV/EBITDA 1.9× · Cheaper than 75% of peers

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 77 · sector 28
FUTURE 28 · sector 21
PAST 100 · sector 18
HEALTH 0 · sector 94
DIVIDEND 100 · sector 48

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

Stock Price Fair Value vs Fair Value
Muyuan Foods Group 002714 ¥40.15 ¥47.42 +18%
PT Charoen Pokphand Indonesia Tbk, CPIN 3,150 IDR 6,818 IDR +116%
Charoen Pokphand Foods Public Company CPF 21.90 THB 43.24 THB +97%
PT Triputra Agro Persada Tbk TAPG 1,805 IDR 3,087 IDR +71%
PT FAP Agri Tbk FAPA 7,350 IDR 6,420 IDR -13%
PT Japfa Comfeed Indonesia Tbk JPFA 2,260 IDR 6,974 IDR +209%
PT Jhonlin Agro Raya Tbk JARR 1,890 IDR 610.80 IDR -68%
PT Nusantara Sawit Sejahtera Tbk NSSS 860.00 IDR 402.24 IDR -53%
PT Sinar Mas Agro Resources and Technology Tbk SMAR 5,625 IDR 16,227 IDR +188%
PT Dharma Satya Nusantara Tbk DSNG 1,320 IDR 2,696 IDR +104%

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Frequently asked questions

Is Fourth Milling Co. (2286) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 5.39 SAR versus a price of 4.05 SAR, about +33% (undervalued).
What is the fair value of 2286?
Our model-based fair value for Fourth Milling Co. is 5.39 SAR (as of Aug 13, 2026), built from audited fundamentals. The current price is 4.05 SAR.
What is the quality score of 2286?
Fourth Milling Co. has a Quality Score of 79/100. 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 Fourth Milling Co. (2286)?
Fourth Milling Co. reported trailing-twelve-month revenue of about 670M SAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2286?
The net profit margin of Fourth Milling Co. is about 30.1%, meaning it keeps roughly 30.1% of revenue as net income. Based on the latest reported figures.
Does Fourth Milling Co. pay a dividend?
Fourth Milling Co. currently shows a dividend yield of about 6.28% 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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