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Fourth Milling Company (2286) Fair Value & Analysis

Consumer Defensive · SA · Market cap 2.1B SAR

FM Fourth Milling Company 2286 · SR
Price3.94 SAR
Fair Value4.99 SAR
Upside+26.6%
Quality75/100
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
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Evidence: High Range 3.61 SAR – 6.99 SAR Share as image

Fair value as of: Jul 31, 2026

From 26 valuation models · updated today

Share price −5.3% over the past month.

What matters now

  • The rarer combination: high quality (75/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range (3.61 SAR to 6.99 SAR) leaves room in how you read the outcome.

Price vs Fair Value (12 months)

4.34 SAR 3.36 SAR Fair Value 4.99 SAR Aug 2025 Jul 2026

12‑month range 3.36 SAR – 4.34 SAR · fair‑value band 3.61 SAR – 6.99 SAR · the 3.94 SAR price screens below the 4.99 SAR fair value. As of Jul 31, 2026.

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Analysis

Fourth Milling Company (2286) currently trades at 3.94 SAR, while our model-based Fair Value estimate is 4.99 SAR, implying the stock looks roughly 26.6% undervalued today. We read business quality at 75/100 (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 Company 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 Jul 31, 2026

Our scenario range runs from 3.61 SAR (bear case) to 6.99 SAR (bull case); at 3.94 SAR, the current price sits within that range. The share trades about 11% below its 52-week high and 18% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 122% fair-value upside, at 27%, 2286 screens richer than that median.

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 10.4
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 Jul 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 75/100
Profitability 71
Quality Growth 39
Cashflow 83
Fin. Strength 83
Investment 86
Low Volatility 93
Momentum 49
52W Momentum 47
Net Issuance 78

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 Company 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.

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 Company Fair Value". https://www.fairvalue-calculator.com/stock/2286

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 69 / 27
FUTURE 28 / 24
PAST 100 / 16
HEALTH 0 / 94
DIVIDEND 100 / 42

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.

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PT Charoen Pokphand Indonesia Tbk, CPIN 3,170 IDR 7,228 IDR +128%
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PT Triputra Agro Persada Tbk TAPG 1,350 IDR 3,337 IDR +147%
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Frequently asked questions

Is Fourth Milling Company (2286) overvalued or undervalued?
As of Jul 31, 2026, our model estimates a fair value of 4.99 SAR versus a price of 3.94 SAR, about +27% (undervalued).
What is the fair value of 2286?
Our model-based fair value for Fourth Milling Company is 4.99 SAR (as of Jul 31, 2026), built from audited fundamentals. The current price is 3.94 SAR.
What is the quality score of 2286?
Fourth Milling Company has a Quality Score of 75/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Fourth Milling Company (2286)?
Fourth Milling Company reported trailing-twelve-month revenue of about 670M SAR (latest available figure, as of Jul 31, 2026).
What is the net profit margin of 2286?
The net profit margin of Fourth Milling Company is about 30.1%, meaning it keeps roughly 30.1% of revenue as net income. Based on the latest reported figures.
Does Fourth Milling Company pay a dividend?
Fourth Milling Company currently shows a dividend yield of about 6.28% 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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