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Gulf Union Cooperative Insurance (8120) Fair Value & Analysis

Financial Services · SA · Market cap 620M SAR

GU Gulf Union Cooperative Insurance 8120 · SR
Price14.89 SAR
Fair Value21.16 SAR
Upside+42.1%
Quality43/100
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Mixed Growth
Loss-making · -4.3% net margin
negative free cash flow
Trails peers (3/9)
Narrow moat 13/100
Evidence: Low Range 15.43 SAR – 26.20 SAR Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 3 days ago

Share price +2.5% over the past month.

Below-average quality, screening 42% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (43/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (15.43 SAR). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

25.20 SAR 7.96 SAR Fair Value 21.16 SAR Apr 2021 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

60‑month range 7.96 SAR – 25.20 SAR · fair‑value band 15.43 SAR – 26.20 SAR · the 14.89 SAR price screens below the 21.16 SAR fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Gulf Union Cooperative Insurance (8120) currently trades at 14.89 SAR, while our model-based Fair Value estimate is 21.16 SAR, implying the stock looks roughly 42.1% undervalued today. The Quality Score stands at 43/100 (below-average quality), in the Financial Services 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: low), always confirm before acting.

Over the trailing twelve months, Gulf Union Cooperative Insurance generated revenue of 924M SAR at a net margin of -4.3%. Revenue declined 4.1% year over year. It earns a return on equity of -6.8%. The balance sheet holds a net cash position of 45.4M SAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from 15.43 SAR (bear case) to 26.20 SAR (bull case); at 14.89 SAR, the current price sits below 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 near its 52-week high and 65% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -33% fair-value upside, at 42%, 8120 screens cheaper 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
ROIC Compounder 7.50 SAR 8.36 SAR 9.09 SAR 67
EPV 7.50 SAR 8.36 SAR 9.09 SAR 59
EV/EBITDA 16.28 SAR 21.32 SAR 26.36 SAR 54
All 6 models by family
Earnings-Based
EPV 7.50 SAR 8.36 SAR 9.09 SAR 59
Multiples
EV/EBIT 15.43 SAR 20.19 SAR 24.95 SAR 53
EV/EBITDA 16.28 SAR 21.32 SAR 26.36 SAR 54
EV/Revenue 15.59 SAR 21.78 SAR 27.97 SAR 43
Asset-Based
NCAV (Graham) 6.20 SAR 8.31 SAR 12.40 SAR 50
Economic Profit
ROIC Compounder 7.50 SAR 8.36 SAR 9.09 SAR 67

Widest divergence: Multiples (21.32 SAR) versus Asset-Based (8.31 SAR). Highest evidence: ROIC Compounder (67).

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Key figures & financial health

Revenue (TTM) 924M SAR
Revenue growth (YoY) -4.1%
Net margin -4.3%
Return on equity -6.8%
Free cash flow −92.6M SAR FY2025
Operating margin 2.7%
More key figures
EPS (TTM) -0.8600 SAR
EPS growth (YoY) -79.5%
Net cash 45.4M SAR FY2024

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

Quality Score breakdown

Overall quality 43/100

Of which business quality 47 · Market factors (momentum, volatility) 75

Profitability 34
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 73
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 50
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

Gulf Union Alahlia Cooperative Insurance Company provides various insurance products and services in the Kingdom of Saudi Arabia. The company offers motor, health, medical malpractice, SME medical, home, marine, engineering, and domestic labor insurance services, as well as general accident, liability, property, and protection insurances.

Full company description

Gulf Union Alahlia Cooperative Insurance Company provides various insurance products and services in the Kingdom of Saudi Arabia. The company offers motor, health, medical malpractice, SME medical, home, marine, engineering, and domestic labor insurance services, as well as general accident, liability, property, and protection insurances. The company was formerly known as Gulf Union Cooperative Insurance Co. and changed its name to Gulf Union Alahlia Cooperative Insurance Company in December 2020. Gulf Union Alahlia Cooperative Insurance Company was founded in 1983 and is headquartered in Dammam, Kingdom of Saudi Arabia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Gulf Union Cooperative Insurance reported revenue of 1.1B SAR in FY2025 versus 620M SAR in FY2021, a compound +14.9%/yr. Reported net income was −83.6M SAR in FY2025.

Growth Quality 35/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.1B SAR
Latest YoY
+45.6%
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.
+35.5%
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.
+18.0%
Avg. growth/yr (16Y) 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.
+5.1%
Revenue +14.9%/yr
FY21 620M SAR
FY22 433M SAR
FY23 624M SAR
FY24 741M SAR
FY25 1.1B SAR
Net income
FY21 −141M SAR
FY22 −18.3M SAR
FY23 125M SAR
FY24 43.6M SAR
FY25 −83.6M SAR
Character of growth · EPS growth decomposed (2015-2025) +10.9 % p.a.
Revenue per share +12.9 pp

of which total revenue +24.0 pp · buybacks/dilution −11.1 pp

EBIT margin −15.5 pp
Tax rate −0.7 pp
Residual (interest, one-offs) +14.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Gulf Union Cooperative Insurance Fair Value". https://www.fairvalue-calculator.com/stock/8120

Peer Group

Insurance - Diversified · 82 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 45 · Bottom 25%
Fair Value upside +42% · Top 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -4% · Bottom 25%
Operating margin (TTM) 3% · Bottom 25%
Revenue growth -4% · Bottom 25%

Valuation Multiples vs Insurance - Diversified median · lower = cheaper

P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 0.18× · 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 89 · sector 18
FUTURE 0 · sector 35
PAST 0 · sector 49
HEALTH 0 · sector 89
DIVIDEND 0 · sector 72

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 Insurance - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Berkshire Hathaway Inc BRKB 8,562 MXN 10,429 MXN +22%
Allianz SE ALV €437.80 €266.04 -39%
Zurich Insurance Group ZURN CHF 589.20 CHF 392.99 -33%
AXA SA AXAN 888.28 MXN 623.98 MXN -30%
Assicurazioni Generali S.p.A G €43.88 €13.91 -68%
BB Seguridade Participações S.A BBSE3 R$36.95 R$33.94 -8%
Tryg A/S TRYG kr 151.70 kr 67.88 -55%
PT Sinar Mas Multiartha Tbk SMMA 20,175 IDR 4,617 IDR -77%
ICICI Lombard General Insurance Company ICICIGI ₹1,635 ₹589.67 -64%
The New India Assurance Company NIACL ₹181.09 ₹128.57 -29%

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Frequently asked questions

Is Gulf Union Cooperative Insurance (8120) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 21.16 SAR versus a price of 14.89 SAR, about +42% (undervalued).
What is the fair value of 8120?
Our model-based fair value for Gulf Union Cooperative Insurance is 21.16 SAR (as of Aug 13, 2026), built from audited fundamentals. The current price is 14.89 SAR.
What is the quality score of 8120?
Gulf Union Cooperative Insurance has a Quality Score of 43/100. 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 Gulf Union Cooperative Insurance (8120)?
Gulf Union Cooperative Insurance reported trailing-twelve-month revenue of about 924M SAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 8120?
The net profit margin of Gulf Union Cooperative Insurance is about -4.3%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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