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Hedab Alkhaleej Trading Co (9631) Fair Value & Analysis

Consumer Cyclical · SA · Market cap 217M SAR (≈ $57.9M)

HA Hedab Alkhaleej Trading Co 9631 · SR
Price29.70 SAR
Fair Value44.33 SAR
Upside+49.3%
Quality37/100
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Strengths

Trades 33% below our fair value of 44.33 SAR
Ranks above peers (8/12)

Risks

!Expensive Growth (revenue 3y +7.0 %/yr)
!Thin margins · 4.6% net margin
!Low debt · negative free cash flow
!Narrow moat 41/100
Expensive Growth (revenue 3y +7.0 %/yr)
Thin margins · 4.6% net margin
Low debt · negative free cash flow
5.18% dividend yield
Ranks above peers (8/12)
Narrow moat 41/100
Evidence: High Range 24.67 SAR – 47.53 SAR Share as image

Fair value as of: Aug 31, 2026

From 17 valuation models · updated today

Share price −13.7% over the past month.

Below-average quality, trading 33% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The large discount to fair value meets weak quality (37/100). That raises the risk this is a value trap rather than a bargain.
  • A fairly wide model range (24.67 SAR to 47.53 SAR) leaves room in how you read the outcome.
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Price vs Fair Value (18 months)

44.35 SAR 26.96 SAR Fair Value 44.33 SAR Mar 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

18‑month range 26.96 SAR – 44.35 SAR · fair‑value band 24.67 SAR – 47.53 SAR · the 29.70 SAR price screens below the 44.33 SAR fair value. Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

Hedab Alkhaleej Trading Co (9631) currently trades at 29.70 SAR, while our model-based Fair Value estimate is 44.33 SAR, implying the stock looks roughly 49.3% undervalued today. The Quality Score stands at 37/100 (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, Hedab Alkhaleej Trading Co generated revenue of 611M SAR at a net margin of 4.5%. Revenue declined 14.0% year over year. It earns a return on equity of 15.4%. Net debt stands at 143M SAR. Fundamentals as of Aug 31, 2026

Our scenario range runs from 24.67 SAR (bear case) to 47.53 SAR (bull case); at 29.70 SAR, the current price sits within 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 29% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 45% fair-value upside, at 49%, 9631 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
Owner Earnings 40.80 SAR 55.42 SAR 73.96 SAR 74
EPV 42.31 SAR 46.78 SAR 50.41 SAR 74
Residual Income 23.29 SAR 26.24 SAR 36.59 SAR 73
All 17 models by family
DCF Models
Owner Earnings 40.80 SAR 55.42 SAR 73.96 SAR 74
Earnings-Based
Graham-Dodd 24.67 SAR 80.67 SAR 107.81 SAR 62
Lynch FV 18.08 SAR 25.83 SAR 33.58 SAR 58
PEG = 1.0 18.08 SAR 25.83 SAR 33.58 SAR 55
EPV 42.31 SAR 46.78 SAR 50.41 SAR 74
Dividend Discount
Gordon GGM 17.41 SAR 29.17 SAR 37.86 SAR 65
DDM Multi-Stage 17.41 SAR 26.73 SAR 31.38 SAR 65
Multiples
P/E Multiple 59.87 SAR 79.82 SAR 99.78 SAR 63
P/S Multiple 46.26 SAR 61.68 SAR 77.10 SAR 58
P/B Multiple 46.26 SAR 61.68 SAR 77.10 SAR 55
EV/EBIT 83.32 SAR 109.41 SAR 135.50 SAR 66
EV/EBITDA 67.71 SAR 88.61 SAR 109.50 SAR 67
EV/Revenue 57.80 SAR 80.42 SAR 103.03 SAR 54
Asset-Based
NCAV (Graham) 13.29 SAR 17.81 SAR 26.58 SAR 54
Economic Profit
Residual Income 23.29 SAR 26.24 SAR 36.59 SAR 73
ROIC Compounder 44.28 SAR 51.61 SAR 59.37 SAR 69
Growth Earnings
Growth-Adj P/E 50.11 SAR 71.58 SAR 93.05 SAR 65

Widest divergence: Multiples (79.82 SAR) versus Asset-Based (17.81 SAR). Highest evidence: Owner Earnings (74).

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Key figures & financial health

P/E ratio 8.0
P/S ratio 0.36 P/E × margin
EPS (TTM) 3.70 SAR price ÷ EPS = P/E 8.0
Dividend yield 5.2% payout 41.6%
Net margin 4.5% FY2025
Return on equity 13.3% TTM
More key figures
Profitability
Return on assets (EBIT) 10.8% avg 4y
Operating margin 6.6% TTM
Growth
Revenue (TTM) 584M SAR TTM
Revenue growth (YoY) -9.0% 3y avg +7.0%
EPS growth (YoY) -6.1%
Balance sheet & cash flow
Free cash flow −25.6M SAR FY2025
Net debt 143M SAR FY2025

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

Quality Score breakdown

Overall quality 37/100

Of which business quality 38 · Market factors (momentum, volatility) 24

Profitability 54
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 4
Earnings quality: real cash, not paper profit
Fin. Strength 57
Balance sheet, leverage, solvency risk
Investment 38
Disciplined investing over empire-building
Low Volatility 18
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 25
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hedab Alkhaleej Trading Co. manufactures and sells ceramics, porcelain, and marble products in Saudi Arabia. It involves in construction, management, and leasing of owned or leased residential and non-residential buildings; wholesale and retail of bricks, blocks, tiles, stone, marble, ceramics, and porcelain; land transportation of goods; freight brokerage …

Full company description

Hedab Alkhaleej Trading Co. manufactures and sells ceramics, porcelain, and marble products in Saudi Arabia. It involves in construction, management, and leasing of owned or leased residential and non-residential buildings; wholesale and retail of bricks, blocks, tiles, stone, marble, ceramics, and porcelain; land transportation of goods; freight brokerage and logistics services; purchase, sale, and division of land and real estate; and management and leasing of self-storage warehouses. The company sells its products through its stores as well as through its website. Hedab Alkhaleej Trading Co. was founded in 2003 and is based in Riyadh, Saudi Arabia.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Hedab Alkhaleej Trading Co reported revenue of 611M SAR in FY2025 versus 499M SAR in FY2022, a compound +7.0%/yr. Reported net income was 27.2M SAR in FY2025, compounding +9.5%/yr from FY2022.

Growth Quality 47/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
611M SAR
Latest YoY
+3.3%
Avg. revenue 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.
+7.0%
Value creation/yr (3Y) Earnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
+5.6% (1.3 + 4.3)
Revenue +7.0%/yr
FY22 499M SAR
FY23 469M SAR
FY24 591M SAR
FY25 611M SAR
Net income +9.5%/yr
FY22 20.7M SAR
FY23 27.0M SAR
FY24 15.3M SAR
FY25 27.2M SAR

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Cite: Fair Value Calculator (2026). "Hedab Alkhaleej Trading Co Fair Value". https://www.fairvalue-calculator.com/stock/9631

Peer Group

Residential Construction · 66 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 37 · Bottom 25%
Fair Value upside +49% · Above median
Return on equity (TTM) 13% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 5% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth -9% · Below median
Dividend yield (TTM) 5.1% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Residential Construction median · lower = cheaper

P/E (TTM) 8.0× · Cheaper than 75% of peers
P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 0.10× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE99 · sector 56
FUTURE0 · sector 0
PAST53 · sector 32
HEALTH99 · sector 88
DIVIDEND100 · sector 65

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

Similar stocks

10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
D.R. Horton, Inc DHI $145.26 $213.23 +47%
PulteGroup, Inc PHM $126.75 $190.17 +50%
Lennar Corporation LEN $85.11 $116.80 +37%
NVR, Inc NVR $6,396 $7,821 +22%
Toll Brothers, Inc TOL $146.22 $221.32 +51%
Taylor Morrison Home Corporation TMHC $72.45 $136.88 +89%
Installed Building Products, Inc IBP $246.00 $209.51 -15%
Meritage Homes Corporation MTH $71.06 $102.94 +45%
Champion Homes, Inc SKY $93.88 $75.12 -20%
Cavco Industries, Inc CVCO $598.38 $421.10 -30%

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Frequently asked questions

Is Hedab Alkhaleej Trading Co (9631) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of 44.33 SAR versus a price of 29.70 SAR, about +49% (undervalued).
What is the fair value of 9631?
Our model-based fair value for Hedab Alkhaleej Trading Co is 44.33 SAR (as of Aug 31, 2026), built from audited fundamentals. The current price: 29.70 SAR.
What is the quality score of 9631?
Hedab Alkhaleej Trading Co has a Quality Score of 37/100. 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 Hedab Alkhaleej Trading Co (9631)?
Hedab Alkhaleej Trading Co reported trailing-twelve-month revenue of about 611M SAR (latest available figure, as of Aug 31, 2026).
What is the net profit margin of 9631?
The net profit margin of Hedab Alkhaleej Trading Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Hedab Alkhaleej Trading Co pay a dividend?
Hedab Alkhaleej Trading Co currently shows a dividend yield of about 4.29% relative to its recent price (as of Aug 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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