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Middle East Pharmaceutical Industries Company (4016) Fair Value & Analysis

Healthcare · SA · Market cap 2.0B SAR

ME Middle East Pharmaceutical Industries Company 4016 · SR
Price57.80 SAR
Fair Value46.83 SAR
Upside-19.0%
Quality62/100
Healthy Growth
Highly profitable · 21.2% net margin
Low debt · generates free cash flow
2.38% dividend yield
Ranks above peers (13/14)
Wide moat 84/100
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Evidence: High Range 31.90 SAR – 72.77 SAR Share as image

Fair value as of: Jul 31, 2026

From 26 valuation models · updated today

Share price −4.5% over the past month.

What matters now

  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (31.90 SAR to 72.77 SAR) leaves room in how you read the outcome.

Price vs Fair Value (12 months)

10,642 SAR 54.24 SAR Fair Value 46.83 SAR Aug 2025 Jul 2026

12‑month range 54.24 SAR – 10,642 SAR · fair‑value band 31.90 SAR – 72.77 SAR · the 57.80 SAR price screens above the 46.83 SAR fair value. As of Jul 31, 2026.

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Analysis

Middle East Pharmaceutical Industries Company (4016) currently trades at 57.80 SAR, while our model-based Fair Value estimate is 46.83 SAR, implying the stock looks roughly 19.0% overvalued today. We read business quality at 62/100 (solid quality), in the Healthcare 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, Middle East Pharmaceutical Industries Company generated revenue of 493M SAR at a net margin of 21.2%. Revenue grew 33.7% year over year. It earns a return on equity of 26.0%. Net debt stands at 29.5M SAR. Fundamentals as of Jul 31, 2026

Our scenario range runs from 31.90 SAR (bear case) to 72.77 SAR (bull case); at 57.80 SAR, the current price sits within that range. For context, the median of 10 Healthcare peers we cover trades at -54% fair-value upside, at -19%, 4016 screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 493M SAR
Revenue growth (YoY) +33.7%
Net margin 21.2%
Return on equity 26.0%
Free cash flow 78.3M SAR FY2025
P/E ratio 19.3
More key figures
Operating margin 23.3%
EPS (TTM) 2.98 SAR
Dividend yield 2.4%
EPS growth (YoY) +38.7%
Net debt 29.5M SAR FY2025

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

Quality Score breakdown

Overall quality 62/100
Profitability 80
Quality Growth 53
Cashflow 65
Fin. Strength 82
Investment 57
Low Volatility 50
Momentum 33
52W Momentum 10
Net Issuance 92

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 Pharmaceutical Industries Company engages in the research, development, manufacture, and marketing of generic medicines and pharmaceutical preparations in the Kingdom of Saudi Arabia and internationally. The company operates through three segments: Private, Public, and Export.

Full company description

Middle East Pharmaceutical Industries Company engages in the research, development, manufacture, and marketing of generic medicines and pharmaceutical preparations in the Kingdom of Saudi Arabia and internationally. The company operates through three segments: Private, Public, and Export. Its product portfolio includes dermatological, respiratory, cardiovascular, alimentary and anti-infectives, musculoskeletal, genitourinary systems, and CNS. It exports its products. The company was formerly known as Middle East Chemical Products Factory Company and changed its name to Middle East Pharmaceutical Industries Company in January 2006. Middle East Pharmaceutical Industries Company was incorporated in 1998 and is headquartered 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

Middle East Pharmaceutical Industries Company reported revenue of 460M SAR in FY2025 versus 287M SAR in FY2021, a compound +12.5%/yr. Reported net income was 97.0M SAR in FY2025, compounding +10.0%/yr from FY2021.

Revenue +12.5%/yr
FY21 287M SAR
FY22 303M SAR
FY23 338M SAR
FY24 394M SAR
FY25 460M SAR
Net income +10.0%/yr
FY21 66.3M SAR
FY22 59.5M SAR
FY23 65.8M SAR
FY24 79.8M SAR
FY25 97.0M SAR

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Cite: Fair Value Calculator (2026). "Middle East Pharmaceutical Industries Company Fair Value". https://www.fairvalue-calculator.com/stock/4016

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 8 / 3
FUTURE 100 / 20
PAST 100 / 19
HEALTH 97 / 96
DIVIDEND 48 / 34

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 Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 31, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥49.36 ¥30.99 -37%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,782 ₹915.92 -49%
Divi's Laboratories Limited DIVISLAB ₹6,639 ₹1,281 -81%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,421 ₹1,504 -66%
PharmaEssentia Corporation 6446 1,095 TWD 365.87 TWD -67%
Cipla Limited CIPLA ₹1,401 ₹592.37 -58%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,098 ₹507.31 -54%
Lupin Limited LUPIN ₹2,268 ₹2,697 +19%
Mankind Pharma Limited MANKIND ₹2,336 ₹1,068 -54%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,291 ₹1,053 -18%

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Frequently asked questions

Is Middle East Pharmaceutical Industries Company (4016) overvalued or undervalued?
As of Jul 31, 2026, our model estimates a fair value of 46.83 SAR versus a price of 57.80 SAR, about −19% (overvalued).
What is the fair value of 4016?
Our model-based fair value for Middle East Pharmaceutical Industries Company is 46.83 SAR (as of Jul 31, 2026), built from audited fundamentals. The current price is 57.80 SAR.
What is the quality score of 4016?
Middle East Pharmaceutical Industries Company has a Quality Score of 62/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Middle East Pharmaceutical Industries Company (4016)?
Middle East Pharmaceutical Industries Company reported trailing-twelve-month revenue of about 493M SAR (latest available figure, as of Jul 31, 2026).
What is the net profit margin of 4016?
The net profit margin of Middle East Pharmaceutical Industries Company is about 21.2%, meaning it keeps roughly 21.2% of revenue as net income. Based on the latest reported figures.
Does Middle East Pharmaceutical Industries Company pay a dividend?
Middle East Pharmaceutical Industries Company currently shows a dividend yield of about 2.38% 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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