reports
- Ahmed Mahmoud
- Alia El Mehelmy
MAHARAH AB | Growth prospects too appealing to ignore
Stock is mispriced, on a 2023e PEG of 0.2 vs. 1.2 for industry. The margin-dilution from Maharah’s new acquisitions that are in start-up negatively surprised us (and the market) in 1Q22. Closed and pending transactions, however, are profit-generating operating assets, with no further M&A on the table. Also, 2Q22 showed q-o-q margin improvement, which we expect will continue. New acquisitions will be below the line, providing clarity on Maharah’s core business. We believe Maharah offers an attrac...
- Ahmed Mahmoud
- Alia El Mehelmy
MAHARAH AB | A play on Saudi labour market recovery; Initiate at OW
Initiate with a 12M TP of SAR96. Maharah is Saudi’s leading recruitment firm. We project its 2022 deployed resources – employees – represent 0.43% of the country’s corporate labour market and 0.36% of household labour, giving them 15-18% of HR-company sourced expats. The stock trades on a 2022e P/E of 17.9x, falling to 13.4x by 2023e vs. peers’ 14.3x, driven by a 2021-23e EPS CAGR of 29%. Maharah also offers an attractive 2022e dividend yield of 4.8%, compared to a Tadawul high of 5.9%.Saudisati...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.