Abstract
Arriyadh Development Company (ARDCO), based in Riyadh and founded in 1993, focuses on buying and selling real estate in Saudi Arabia. With a market value of 5.45 billion SAR, ARDCO has seen strong growth, with sales rising 31% to 339.2 million SAR in FY23. The company has no debt, which shows its financial strength, and it is valued attractively with a P/E ratio of 15.9x, much lower than the industry average of 31x.
Recent analysis shows that the stock is on a strong upward trend, reaching new highs. As Saudi Arabia invests in infrastructure and diversifies its economy, ARDCO is well-positioned to benefit from the growing real estate market, making it a promising option for investors.
TADAWUL: 1212 - Astra Industrial - STOCK OVERVIEW
Arriyadh Development Co. specializes in buying and selling land and real estate across Saudi Arabia. The company operates through various segments, including Commercial Centers, Public Benefit, Lands and Contributions, and Common Assets and Liabilities. Additionally, it engages in off-plan sales, manages and leases both residential and commercial properties, and develops real estate projects for both sectors. The company also deals in the wholesale and retail of new and used vehicles, such as ambulances, minibuses, and four-wheel drive cars. Established in 1993, its headquarters is located in Riyadh, Saudi Arabia.
Market Capitalization – 5.45 B SAR
TADAWUL: 4150 - Arriyadh Development - STOCK RECOMMENDATION
| Idea | BUY |
| Buy Range | 31 – 32 |
| Target | 40 – 41 |
| Duration | 12-15 Months |
| Potential Returns | 30% – 35% |
| Idea | Buy Range | Target | Duration | Potential Returns |
| BUY | 31 – 32 | 40 – 41 | 12-15 Trading Months | 30% – 35% |
TADAWUL: 4150 - Arriyadh Development - RELATIVE STRENGTH
Relative Performance - Last 1 Year
ARDCO — TASI —
The chart clearly illustrates that ARDCO has outperformed the Tadawul all-share index by a remarkable margin, achieving an outstanding annual return of 54%.
TADAWUL: 4150 - Arriyadh Development - TECHNICAL ANALYSIS
Monthly Chart
- In February 2006, the stock reached a previous all-time high close to 28.5 SAR.
- Following this peak, it encountered significant selling pressure, leading to a substantial decline.
- The price eventually found support near 2 SAR and began its upward trajectory
- After nearly two decades, the stock has successfully surpassed its previous resistance level and is now trading at a new all-time high.
- This upward momentum is anticipated to continue, pushing the price even higher
Daily Chart
- The daily chart reveals that the price has developed a Rounding Bottom pattern and has recently broken out, continuing its upward movement.
TADAWUL: 4150 - Arriyadh Development - Revenue & Profit Analysis
Year-on-year
- In FY23, sales reached 339.2 million SAR, marking an impressive 31% increase from 259 million SAR in FY22.
- EBITDA rose to 185.5 million SAR, compared to 142 million SAR in FY22.
- The EBITDA margin remained stable at 55% during this period.
Quarter-on-quarter
- In Q3, sales amounted to 79.6 million SAR, an increase from 77.0 million SAR in Q2.
- However, Q3 EBITDA fell to 30.5 million SAR, down from 43.7 million SAR in Q2.
- The diluted EPS for Q3 is recorded at 2.0 SAR (LTM), unchanged from Q2 2024.
TADAWUL: 4150 - Arriyadh Development - VALUATION
P/E Ratio
- This stock presents a compelling valuation, boasting a Price-To-Earnings Ratio of 15.9x, which is significantly lower than the peers average of 31x.
P/B Ratio
- With a P/B ratio of 2.3x, this stock appears to be reasonably valued when compared to the peer average of 4.1x.
PEG Ratio
- The PEG ratio of 0.13 indicates that the stock is undervalued in relation to its anticipated earnings growth.
TADAWUL: 4150 - Arriyadh Development - Cash Flow Analysis
- Cash flow from operations jumped 90% to 225.8 million SAR in FY23, up from 112 million SAR in FY22, highlighting the company’s operational efficiency.
TADAWUL: 4150 - Arriyadh Development - DEBT Analysis
- The company proudly maintains a completely debt-free status, showcasing its strong financial health.
TADAWUL: 4150 - Arriyadh Development - Top Shareholders
- The Vanguard Group has a significant ownership stake of 2.17% in this company, while Blackrock holds a 1.32% interest, which marks a notable increase of 0.67% from the last quarter.
TADAWUL: 4150 - Arriyadh Development - CONCLUSION
Saudi Arabia’s initiatives to broaden its economic base, along with a surge in domestic demand and heightened investment in infrastructure, are set to drive the real estate market into an era of remarkable expansion.
ARDCO, as a significant participant in this field, is strategically positioned to take advantage of this momentum, supported by its strong financial performance and positive technical aspects.
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