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Middle East Healthcare Company (4009) Fair Value & Analysis

Healthcare · SA · Market cap 2.7B SAR

ME Middle East Healthcare Company 4009 · SR
Price29.74 SAR
Fair Value55.76 SAR
Upside+87.5%
Quality38/100
Expensive Growth
Thin margins · 5.3% net margin
Moderate debt · negative free cash flow
1.66% dividend yield
Ranks above peers (9/13)
Narrow moat 38/100
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Evidence: High Range 40.98 SAR – 69.70 SAR Share as image

Fair value as of: Jul 31, 2026

From 16 valuation models · updated today

Share price −5.2% over the past month.

What matters now

  • The large discount to fair value meets weak quality (38/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (40.98 SAR). The market is more pessimistic than our downside scenario.

Price vs Fair Value (12 months)

58.86 SAR 28.50 SAR Fair Value 55.76 SAR Aug 2025 Jul 2026

12‑month range 28.50 SAR – 58.86 SAR · fair‑value band 40.98 SAR – 69.70 SAR · the 29.74 SAR price screens below the 55.76 SAR fair value. As of Jul 31, 2026.

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Analysis

Middle East Healthcare Company (4009) currently trades at 29.74 SAR, while our model-based Fair Value estimate is 55.76 SAR, implying the stock looks roughly 87.5% undervalued today. We read business quality at 38/100 (below-average quality), in the Healthcare 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, Middle East Healthcare Company generated revenue of 3.1B SAR at a net margin of 5.3%. Revenue grew 4.3% year over year. It earns a return on equity of 9.1%. Net debt stands at 2.5B SAR. Fundamentals as of Jul 31, 2026

Our scenario range runs from 40.98 SAR (bear case) to 69.70 SAR (bull case); at 29.74 SAR, the current price sits below that range. The share trades about 50% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -21% fair-value upside, at 87%, 4009 screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 3.1B SAR
Revenue growth (YoY) +4.3%
Net margin 5.3%
Return on equity 9.1%
Free cash flow −99.8M SAR FY2025
P/E ratio 16.4
More key figures
Operating margin 10.4%
EPS (TTM) 1.82 SAR
Dividend yield 1.7%
EPS growth (YoY) -84.0%
Net debt 2.5B SAR FY2025

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

Quality Score breakdown

Overall quality 38/100
Profitability 45
Quality Growth 37
Cashflow 25
Fin. Strength 24
Investment 47
Low Volatility 81
Momentum 14
52W Momentum 3
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

Middle East Healthcare Company, a healthcare provider, owns and operates a network of hospitals under the Saudi German Hospital name in the Kingdom of Saudi Arabia and internationally. The company operates, manages, and maintains hospitals; and medical, educational, rehabilitation, laboratories and radiology, physiotherapy, and pharmacies centers.

Full company description

Middle East Healthcare Company, a healthcare provider, owns and operates a network of hospitals under the Saudi German Hospital name in the Kingdom of Saudi Arabia and internationally. The company operates, manages, and maintains hospitals; and medical, educational, rehabilitation, laboratories and radiology, physiotherapy, and pharmacies centers. It also buys land to construct medical projects, as well as to establish, manage, construct, and organize exhibitions. The company was founded in 1988 and is based in Jeddah, the Kingdom of Saudi Arabia. Middle East Healthcare Company operates as a subsidiary of Bait Al Batterjee Medical Co. Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Middle East Healthcare Company reported revenue of 3.1B SAR in FY2025 versus 1.9B SAR in FY2021, a compound +13.5%/yr. Reported net income was 302M SAR in FY2025, compounding +125.2%/yr from FY2021.

Revenue +13.5%/yr
FY21 1.9B SAR
FY22 2.2B SAR
FY23 2.7B SAR
FY24 2.9B SAR
FY25 3.1B SAR
Net income +125.2%/yr
FY21 11.7M SAR
FY22 75.2M SAR
FY23 180M SAR
FY24 282M SAR
FY25 302M SAR

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Cite: Fair Value Calculator (2026). "Middle East Healthcare Company Fair Value". https://www.fairvalue-calculator.com/stock/4009

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 100 / 20
FUTURE 22 / 25
PAST 36 / 29
HEALTH 58 / 90
DIVIDEND 33 / 38

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 Medical Care Facilities stocks, each showing price versus our Fair Value estimate (as of Jul 31, 2026).

Stock Price Fair Value vs Fair Value
HCA Healthcare, Inc H1CA34 R$95.75 R$123.65 +29%
Fresenius SE FRE €37.69 €30.03 -20%
Dr. Sulaiman Al Habib Medical Services Group 4013 235.00 SAR 112.37 SAR -52%
IHH Healthcare Berhad, an investment holding company, Q0F 2.76 SGD 1.28 SGD -54%
Tenet Healthcare Corporation THC $194.91 $338.05 +73%
Rede D'Or São Luiz S.A RDOR3 R$32.50 R$46.04 +42%
DaVita Inc DVAI34 R$1,081 R$207.69 -81%
Apollo Hospitals Enterprise Limited APOLLOHOSP ₹8,305 ₹2,546 -69%
Fresenius Medical Care AG FMSC34 R$120.84 R$36.43 -70%
Aier Eye Hospital Group 300015 ¥8.54 ¥6.73 -21%

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Frequently asked questions

Is Middle East Healthcare Company (4009) overvalued or undervalued?
As of Jul 31, 2026, our model estimates a fair value of 55.76 SAR versus a price of 29.74 SAR, about +87% (undervalued).
What is the fair value of 4009?
Our model-based fair value for Middle East Healthcare Company is 55.76 SAR (as of Jul 31, 2026), built from audited fundamentals. The current price is 29.74 SAR.
What is the quality score of 4009?
Middle East Healthcare Company has a Quality Score of 38/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Middle East Healthcare Company (4009)?
Middle East Healthcare Company reported trailing-twelve-month revenue of about 3.1B SAR (latest available figure, as of Jul 31, 2026).
What is the net profit margin of 4009?
The net profit margin of Middle East Healthcare Company is about 5.3%, meaning it keeps roughly 5.3% of revenue as net income. Based on the latest reported figures.
Does Middle East Healthcare Company pay a dividend?
Middle East Healthcare Company currently shows a dividend yield of about 1.66% 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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