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Al-Fakhera Men's Tailoring Company (9618) Fair Value & Analysis

Consumer Cyclical · SA · Market cap 223M SAR

AF Al-Fakhera Men's Tailoring Company 9618 · SR
Price6.20 SAR
Fair Value9.85 SAR
Upside+58.9%
Quality34/100
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Expensive Growth
Solidly profitable · 15.6% net margin
Low debt · negative free cash flow
6.45% dividend yield
Ranks above peers (11/13)
Wide moat 74/100
Evidence: High Range 7.12 SAR – 12.42 SAR Share as image

Fair value as of: Aug 1, 2026

From 16 valuation models · updated 7 days ago

Share price −3.1% over the past month.

Below-average quality, screening 59% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (34/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (7.12 SAR). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (20 months)

8.24 SAR 4.59 SAR Fair Value 9.85 SAR Nov 2024 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 1, 2026.

How to read this chart

20‑month range 4.59 SAR – 8.24 SAR · fair‑value band 7.12 SAR – 12.42 SAR · the 6.20 SAR price screens below the 9.85 SAR fair value. Dashed = 300-day average. As of Aug 1, 2026.

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Analysis

Al-Fakhera Men's Tailoring Company (9618) currently trades at 6.20 SAR, while our model-based Fair Value estimate is 9.85 SAR, implying the stock looks roughly 58.9% undervalued today. We read business quality at 34/100 (below-average quality), in the Consumer Cyclical 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, Al-Fakhera Men's Tailoring Company generated revenue of 135M SAR at a net margin of 15.6%. Revenue grew 26.6% year over year. It earns a return on equity of 23.0%. Net debt stands at 46.2M SAR. Fundamentals as of Aug 1, 2026

Our scenario range runs from 7.12 SAR (bear case) to 12.42 SAR (bull case); at 6.20 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 about 32% below its 52-week high and 42% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -45% fair-value upside, at 59%, 9618 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 BearBaseBull Evidence
Highest evidence
Residual Income 2.99 SAR 3.91 SAR 10.77 SAR 76
ROIC Compounder 4.66 SAR 6.07 SAR 7.83 SAR 72
Gordon GGM 1.60 SAR 2.68 SAR 3.48 SAR 70
All 16 models by family
Earnings-Based
Graham-Dodd 3.97 SAR 22.73 SAR 31.60 SAR 54
Lynch FV 6.40 SAR 9.14 SAR 11.88 SAR 50
PEG = 1.0 6.40 SAR 9.14 SAR 11.88 SAR 46
EPV 4.14 SAR 4.69 SAR 5.14 SAR 59
Dividend Discount
Gordon GGM 1.60 SAR 2.68 SAR 3.48 SAR 70
DDM Multi-Stage 1.60 SAR 2.55 SAR 2.89 SAR 61
Multiples
P/E Multiple 8.77 SAR 11.69 SAR 14.61 SAR 63
P/S Multiple 7.04 SAR 9.39 SAR 11.73 SAR 58
P/B Multiple 6.11 SAR 8.15 SAR 10.19 SAR 55
EV/EBIT 9.20 SAR 12.42 SAR 15.64 SAR 53
EV/EBITDA 10.23 SAR 13.79 SAR 17.35 SAR 54
EV/Revenue 6.05 SAR 8.84 SAR 11.64 SAR 43
Asset-Based
NCAV (Graham) 1.36 SAR 1.82 SAR 2.72 SAR 50
Economic Profit
Residual Income 2.99 SAR 3.91 SAR 10.77 SAR 76
ROIC Compounder 4.66 SAR 6.07 SAR 7.83 SAR 72
Growth Earnings
Growth-Adj P/E 9.29 SAR 13.27 SAR 17.25 SAR 68

Widest divergence: Growth Earnings (13.27 SAR) versus Asset-Based (1.82 SAR). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 135M SAR
Revenue growth (YoY) +26.6%
Net margin 15.6%
Return on equity 23.0%
Free cash flow −35.5M SAR FY2025
P/E ratio 10.7
More key figures
Operating margin 24.5%
EPS (TTM) 0.5800 SAR
Dividend yield 6.5%
EPS growth (YoY) +127%
Net debt 46.2M SAR FY2025

Figures from reported company fundamentals · as of Aug 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 34/100

Of which business quality 33 · Market factors (momentum, volatility) 37

Profitability 61
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 0
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 0
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

Al-Fakhera Men's Tailoring Company engages in the manufacture and sale of tailoring, sewing and knitting clothes for men and children. The company also offers men's and children's clothes, rings, slippers, sticks, vests, underwear, socks, and other accessories. It also offers gloves, neckties, suspenders, prayer beads, and umbrellas.

Full company description

Al-Fakhera Men's Tailoring Company engages in the manufacture and sale of tailoring, sewing and knitting clothes for men and children. The company also offers men's and children's clothes, rings, slippers, sticks, vests, underwear, socks, and other accessories. It also offers gloves, neckties, suspenders, prayer beads, and umbrellas. The company sells its products online. Al-Fakhera Men's Tailoring Company was founded in 1976 and is based in Riyadh, the Kingdom of Saudi Arabia.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Al-Fakhera Men's Tailoring Company reported revenue of 135M SAR in FY2025 versus 92.8M SAR in FY2022, a compound +13.4%/yr. Reported net income was 21.0M SAR in FY2025, compounding +13.7%/yr from FY2022.

Growth Quality 61/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
135M SAR
Latest YoY
+19.0%
Avg. growth/yr (3Y)
+13.4%
Revenue +13.4%/yr
FY22 92.8M SAR
FY23 98.2M SAR
FY24 114M SAR
FY25 135M SAR
Net income +13.7%/yr
FY22 14.3M SAR
FY23 18.7M SAR
FY24 14.8M SAR
FY25 21.0M SAR

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Cite: Fair Value Calculator (2026). "Al-Fakhera Men's Tailoring Company Fair Value". https://www.fairvalue-calculator.com/stock/9618

Peer Group

Apparel Retail · 106 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 34 · Bottom 25%
Fair Value upside +59% · Top 25%
Return on equity (TTM) 23% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth 27% · Top 25%
Dividend yield (TTM) 6.5% · Top 25%
Debt / equity 0.33× · Higher than 75% of peers

Valuation Multiples vs Apparel Retail median · lower = cheaper

P/E (TTM) 10.7× · Cheaper than median
P/B 0.61× · Cheaper than 75% of peers
P/S (TTM) 0.44× · Cheaper than median
EV/EBITDA 2.6× · 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 100 · sector 33
FUTURE 100 · sector 18
PAST 92 · sector 36
HEALTH 84 · sector 100
DIVIDEND 100 · sector 44

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 Apparel Retail stocks, each showing price versus our Fair Value estimate (as of Aug 1, 2026).

Stock Price Fair Value vs Fair Value
Industria de Diseño Textil, S.A 1ITX €55.74 €24.93 -55%
The TJX Companies, Inc TJX $154.46 $84.95 -45%
Fast Retailing Co 6288 HK$40.00 HK$15.37 -62%
Ross Stores, Inc ROST $233.46 $118.41 -49%
Burlington Stores, Inc BURL $327.72 $147.08 -55%
Trent Limited TRENT ₹2,903 ₹709.49 -76%
lululemon athletica inc., LULU $116.33 $299.63 +158%
Aritzia Inc ATZ C$160.05 C$87.26 -45%
The Gap, Inc GAP $20.35 $37.12 +82%
Urban Outfitters, Inc URBN $72.95 $92.88 +27%

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Frequently asked questions

Is Al-Fakhera Men's Tailoring Company (9618) overvalued or undervalued?
As of Aug 1, 2026, our model estimates a fair value of 9.85 SAR versus a price of 6.20 SAR, about +59% (undervalued).
What is the fair value of 9618?
Our model-based fair value for Al-Fakhera Men's Tailoring Company is 9.85 SAR (as of Aug 1, 2026), built from audited fundamentals. The current price is 6.20 SAR.
What is the quality score of 9618?
Al-Fakhera Men's Tailoring Company has a Quality Score of 34/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Al-Fakhera Men's Tailoring Company (9618)?
Al-Fakhera Men's Tailoring Company reported trailing-twelve-month revenue of about 135M SAR (latest available figure, as of Aug 1, 2026).
What is the net profit margin of 9618?
The net profit margin of Al-Fakhera Men's Tailoring Company is about 15.6%, meaning it keeps roughly 15.6% of revenue as net income. Based on the latest reported figures.
Does Al-Fakhera Men's Tailoring Company pay a dividend?
Al-Fakhera Men's Tailoring Company currently shows a dividend yield of about 6.45% relative to its recent price (as of Aug 1, 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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