Middle East Paper Co. (MEPCO) (1202) — Financial Analysis & Intrinsic Value · TASIV

Middle East Paper Co. (MEPCO) intrinsic value and dividend analysis using DCF, P/B, PEG and PSG models. Includes dividend yield, payout ratio, and dividend sustainability assessment. Sector: Materials. Listed on Saudi Exchange Tadawul.

Company Overview

Middle East Company for Manufacturing and Producing Paper (MEPCO) produces and sells container boards and industrial papers through its manufacturing and trading segments, serving markets across Africa, Asia, the Americas, Europe, and the GCC. Its products include containerboard and fluting materials, tissue paper, and specialty paperboards used in packaging, construction lining, and furniture applications, alongside waste paper and carton recycling operations. Founded in 2000, the company is headquartered in Jeddah.

Valuation Model

TASIV estimates this company's intrinsic value using a Price-to-Book (P/B) model. As of TASIV's most recent data refresh, the estimated intrinsic value is SAR 16.89 compared to a market price of SAR 17.70 (Trading near DCF model value). This is an analytical estimate, not investment advice.

Financial Performance

Revenue increased by about 22% over the three-year period, while net income moved from a loss of about SAR 87.6 million to a profit of roughly SAR 23.4 million, crossing from negative to positive in the final year. Operating cash flow fluctuated between positive and negative each year, ending at about SAR 123.1 million, a less steady pattern than the more gradual increase in net income. Overall, the company's historical financial performance shows growth in revenue alongside net income that turned positive and cash flow that remained inconsistent.

Dividends

Dividend per share fluctuated over the 5-year recorded period, ranging between SAR 0.5 and SAR 1.5, and ended at SAR 0.5 versus SAR 0.75 at the start. Payments have been made on an Annual basis throughout this period. Overall, the company's per-share dividend has varied year to year without a consistent direction. Current dividend yield is approximately 2.82%, with a payout ratio of approximately 185.11%.

Business Fundamentals

TASIV's Competitive Advantage assessment for this company is Moderate (41/100), based on profitability, predictability, financial strength, and growth resilience.

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Frequently Asked Questions

What is the estimated intrinsic value of Middle East Paper Co. (MEPCO) (1202) according to TASIV's model?

Based on TASIV's Price-to-Book (P/B) model, the estimated intrinsic value of Middle East Paper Co. (MEPCO) is approximately SAR 16.89, compared to a current market price of SAR 17.70. This is an analytical estimate based on the company's financial data, not investment advice or a recommendation to buy or sell.

How does Middle East Paper Co. (MEPCO)'s current market price compare to TASIV's model value?

According to TASIV's model, Middle East Paper Co. (MEPCO) is currently "Trading near DCF model value".

What is the dividend yield for Middle East Paper Co. (MEPCO) (1202)?

Middle East Paper Co. (MEPCO)'s dividend yield is approximately 2.82%, with a payout ratio of approximately 185.11%, based on TASIV's most recent verified data.

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