Saudi Kayan (2350.SR)
Materials · Tadawul · Saudi Arabia
Fundamentals
Valuation and ratings
Saudi Kayan trades at SR5.09, close to the SR5.69 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 14 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
About Saudi Kayan
Saudi Kayan Petrochemical Company manufactures and sells chemicals, polymers, and specialty products in Saudi Arabia and internationally. The company offers ethylene for use as a feed stock for polyethylene and ethylene glycol; propylene for use as a feed stock for polypropylene and cumene; benzene for use as a feed stock for cumene plant; polypropylene for automotive, electric appliances, hot water pipe system fibers, and film wraps; and high- and low-density polyethylene for automotive gasoline tanks, pipes, bottles, and containers. It also provides ethylene oxide for use as a feed stock to ethylene glycols, polycarbonates, and ethanolamines; monoethylene glycol for use in polyester fibers, PET soft drinks package, antifreeze and coolants, heat transfer fluids, and chemical intermediates; diethylene glycol used in unsaturated polyester resins, polyurethanes and plasticizers, grinding aids, gas dehydration, printing ink, and paint pigments; and triethylene glycol for the dehydration of industrial gases and solvents, and plasticizers. The company offers cumene and phenol used as a feed stock to phenol and bisphenol-A plants; acetone used in solvents, and BPA and methyl methacrylate manufacturing; bisphenol A for use in polycarbonates and epoxy resins; and polycarbonate for use in optical media, construction and housing, automotive, aircraft, electronic components, lenses, toys, hobby items, and medical appliances; monoethanolamine, diethanolamine, and triethanolamine used in gas sweetening, detergent and specialty cleaning formulations, concrete mixtures, flexible urethane foam catalysts, pharmaceuticals, personal care products, and herbicides; ethoxylates for the detergent, paint, and leather industries; N-butanol for use in solvents, plasticizers, and coatings; iso-butanol used in direct solvents, chemical intermediates, and additives; and natural detergent alcohol for use in detergents. The company was incorporated in 2007 and is based in Jubail, Saudi Arabia.
Common questions
Is Saudi Kayan (2350.SR) undervalued?
Against our discounted cash flow estimate of SR5.69, 2350.SR at SR5.09 is 12% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.