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Riyad Bank (1010) Fair Value & Analysis

Financial Services · SA · Market cap 81.7B SAR (≈ $21.8B) · ISIN SA0007879048

What is Riyad Bank really worth?

RB Riyad Bank 1010 · SR
Price20.71 SAR
Fair Value30.26 SAR
Upside+46.1%
Quality44/100

Below-average quality, trading 32% below our fair value of 30.26 SAR.

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Strengths

Highly profitable · 61.1% net margin
Ranks above peers (10/12)
Wide moat 70/100

Risks

!Expensive Growth (revenue 5y +10.6 %/yr)
!Low debt · negative free cash flow
!Evidence only medium, so the estimate is less certain
!Weak on future: 15 out of 100

For context

·5.08% dividend yield
Evidence: Medium Range 22.69 SAR – 37.82 SAR

Fair value as of: Sep 3, 2026

From 6 valuation models · updated yesterday

Share price +2.5% over the past month.

What runs behind every stock

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

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (22.69 SAR). The market is more pessimistic than our downside scenario.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

950,926 SAR 14.95 SAR Fair Value 30.26 SAR May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range 14.95 SAR – 950,926 SAR · fair‑value band 22.69 SAR – 37.82 SAR · the 20.71 SAR price screens below the 30.26 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

Riyad Bank (1010) currently trades at 20.71 SAR, while our model-based Fair Value estimate is 30.26 SAR, implying the stock looks roughly 31.6% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of 26.53 SAR per share, and 5 of the 6 models we run sit above the 20.71 SAR price. Bear case: the Asset-Based group reads lowest at 12.70 SAR, and 1 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Riyad Bank generated revenue of 17.3B SAR at a net margin of 61.1%. Revenue grew 3.0% year over year. It earns a return on equity of 13.9%. Net debt stands at 1.1B SAR. Fundamentals as of Sep 3, 2026

Our scenario range runs from 22.69 SAR (bear case) to 37.82 SAR (bull case); at 20.71 SAR, the current price sits below 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. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at 46%, 1010 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 0.9792 SAR per share, which is 3.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
Residual Income best evidence 18.40 SAR 22.67 SAR 47.54 SAR 71
Gordon GGM 12.05 SAR 25.06 SAR 39.75 SAR 66
DDM Multi-Stage 12.05 SAR 20.94 SAR 26.30 SAR 66
All 6 models by family
Dividend Discount
Gordon GGM 12.05 SAR 25.06 SAR 39.75 SAR 66
DDM Multi-Stage 12.05 SAR 20.94 SAR 26.30 SAR 66
Multiples
P/E Multiple 25.48 SAR 33.98 SAR 42.47 SAR 63
P/B Multiple 19.90 SAR 26.53 SAR 33.16 SAR 55
Asset-Based
NCAV (Graham) 9.47 SAR 12.70 SAR 18.95 SAR 54
Economic Profit
Residual Income best evidence 18.40 SAR 22.67 SAR 47.54 SAR 71

Widest divergence: Multiples (26.53 SAR) versus Asset-Based (12.70 SAR). Highest evidence: Residual Income (71).

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Key figures & financial health

P/E ratio 8.3
P/S ratio 4.70 P/E × margin
EPS (TTM) 2.50 SAR price ÷ EPS = P/E 8.3
Dividend yield 5.1% payout 42.1%
Net margin 56.7% FY2025
Return on equity 13.9% TTM
More key figures
Profitability
Return on assets (EBIT) 2.3% avg 5y
Operating margin 68.6% TTM
Growth
Revenue (TTM) 17.3B SAR TTM
Revenue growth (YoY) +3.0% 3y avg +11.3%
EPS growth (YoY) +2.2%
Balance sheet & cash flow
Free cash flow −25.9B SAR FY2025
Net debt 1.1B SAR FY2025

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 38 · Market factors (momentum, volatility) 43

Profitability 38
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 45
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 23
Distance to the 52-week high (market factor)
Net Issuance 83
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

Riyad Bank provides banking and investment services in the Kingdom of Saudi Arabia. It operates through the Retail Banking, Investment Banking and Brokerage, Corporate Banking, and Treasury and Investments segments. The Retail Banking segment offers deposits, credit, and investment products for individuals.

Full company description

Riyad Bank provides banking and investment services in the Kingdom of Saudi Arabia. It operates through the Retail Banking, Investment Banking and Brokerage, Corporate Banking, and Treasury and Investments segments. The Retail Banking segment offers deposits, credit, and investment products for individuals. Its Investment Banking and Brokerage segment provides investment management services, as well as asset management services related to dealing, managing, arranging, advising, and custody of securities. The Corporate Banking segment offers current accounts, deposits, loans, overdrafts, and other credit facilities for small to medium sized businesses. Its Treasury and Investments segment provides money market, trading, and treasury and derivative products and services, as well as manages investment portfolios. The company also offers credit cards; trade finance, payroll solution, point of sale; and cash deposit card; student account; time deposit; sweeping; personal, auto-lease, readymade and incomplete property, home equity, self-employed, and mortgage loans; working capital, contract, capital expenditure, and project financing; syndicated loan; Islamic banking products and services; foreign exchange products; and digital banking services. In addition, it owns, buys, and sells real estate; and acts as an agent for insurance products, as well as engages in systems analysis, application, operating systems development, hosting websites, financial technology solutions, and related activities. The company operates through a network of branches in the Kingdom of Saudi Arabia, the United Kingdom, the United States; and a representative office in Singapore and ATMs. Riyad Bank was incorporated in 1957 and is based in Riyadh, the Kingdom of Saudi Arabia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Riyad Bank reported revenue of 18.4B SAR in FY2025 versus 11.6B SAR in FY2021, a compound +12.2%/yr. Reported net income was 10.4B SAR in FY2025, compounding +14.7%/yr from FY2021.

Growth Quality 60/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
18.4B SAR
Latest YoY
+6.4%
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.
+11.3%
Avg. revenue growth/yr (5Y) 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.
+10.6%
Avg. revenue growth/yr (19Y) 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.
+6.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+18.4% (13.3 + 5.1)
Revenue +12.2%/yr
FY21 11.6B SAR
FY22 13.3B SAR
FY23 15.8B SAR
FY24 17.3B SAR
FY25 18.4B SAR
Net income +14.7%/yr
FY21 6.0B SAR
FY22 7.0B SAR
FY23 8.0B SAR
FY24 9.3B SAR
FY25 10.4B SAR
Character of growth · EPS growth decomposed (2014-2025) +10.1 % p.a.
Revenue per share +9.1 %

of which total revenue +9.0 % · buybacks/dilution +0.0 %

EBIT margin +2.7 %
Tax rate −1.2 %
Residual (interest, one-offs) −0.5 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Riyad Bank Fair Value". https://www.fairvalue-calculator.com/stock/1010

Peer Group

Banks - Regional · 1071 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 45 · Bottom 25%
Fair Value upside +46% · Top 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 2% · Top 25%
Net margin (TTM) 61% · Top 25%
Operating margin (TTM) 69% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 5.1% · Top 25%
Debt / equity 0.12× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 8.3× · Cheaper than 75% of peers
P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 1.26× · Cheaper than 75% of peers

Strength profile in five axes (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
VALUE95 · sector 33
FUTURE15 · sector 45
PAST56 · sector 41
HEALTH94 · sector 85
DIVIDEND100 · sector 51

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 Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €102.56 €144.64 +41%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 −42%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is Riyad Bank (1010) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of 30.26 SAR versus a price of 20.71 SAR, about +46% upside (undervalued).
What is the fair value of 1010?
Our model-based fair value for Riyad Bank is 30.26 SAR (as of Sep 3, 2026), built from audited fundamentals. The current price: 20.71 SAR.
What is the quality score of 1010?
Riyad Bank has a Quality Score of 44/100. 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 Riyad Bank (1010)?
Riyad Bank reported trailing-twelve-month revenue of about 17.3B SAR (latest available figure, as of Sep 3, 2026).
What is the net profit margin of 1010?
The net profit margin of Riyad Bank is about 61.1%, meaning it keeps roughly 61.1% of revenue as net income. Based on the latest reported figures.
Does Riyad Bank pay a dividend?
Riyad Bank currently shows a dividend yield of about 5.08% relative to its recent price (as of Sep 3, 2026).
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