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Arab National Bank (1080) Fair Value & Analysis

Financial Services · SA · Market cap 44.5B SAR (≈ $11.8B) · ISIN SA0007879105

What is Arab National Bank really worth?

AN Arab National Bank 1080 · SR
Price22.90 SAR
Fair Value34.21 SAR
Upside+49.4%
Quality43/100

Below-average quality, trading 33% below our fair value of 34.21 SAR.

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Strengths

Highly profitable · 55.1% net margin
Low debt · generates free cash flow
Ranks above peers (10/13)
Wide moat 70/100

Risks

!Expensive Growth (revenue 5y +11.1 %/yr)
!Evidence only medium, so the estimate is less certain

For context

·5.68% dividend yield
Evidence: Medium Range 25.65 SAR – 42.75 SAR

Fair value as of: Aug 30, 2026

From 6 valuation models · updated 6 days ago

Share price +3.2% 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 (43/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (25.65 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)

24.45 SAR 8.66 SAR Fair Value 34.21 SAR Feb 2020 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range 8.66 SAR – 24.45 SAR · fair‑value band 25.65 SAR – 42.75 SAR · the 22.90 SAR price screens below the 34.21 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Arab National Bank (1080) currently trades at 22.90 SAR, while our model-based Fair Value estimate is 34.21 SAR, implying the stock looks roughly 33.1% undervalued today. The Quality Score stands at 43/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of 33.51 SAR per share, and 3 of the 6 models we run sit above the 22.90 SAR price. Bear case: the Asset-Based group reads lowest at 16.70 SAR, and 3 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Arab National Bank generated revenue of 9.5B SAR at a net margin of 55.1%. Revenue grew 8.7% year over year. It earns a return on equity of 11.0%. The balance sheet holds a net cash position of 13.2B SAR. Fundamentals as of Aug 30, 2026

Our scenario range runs from 25.65 SAR (bear case) to 42.75 SAR (bull case); at 22.90 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. The share trades about 7% below its 52-week high and 19% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at 49%, 1080 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 0.9136 SAR per share, which is 2.7 % 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 22.17 SAR 24.76 SAR 38.86 SAR 75
Gordon GGM 10.82 SAR 22.50 SAR 35.70 SAR 66
DDM Multi-Stage 10.82 SAR 17.03 SAR 23.60 SAR 66
All 6 models by family
Dividend Discount
Gordon GGM 10.82 SAR 22.50 SAR 35.70 SAR 66
DDM Multi-Stage 10.82 SAR 17.03 SAR 23.60 SAR 66
Multiples
P/E Multiple 25.13 SAR 33.51 SAR 41.88 SAR 63
P/B Multiple 26.17 SAR 34.90 SAR 43.62 SAR 55
Asset-Based
NCAV (Graham) 12.46 SAR 16.70 SAR 24.93 SAR 54
Economic Profit
Residual Income best evidence 22.17 SAR 24.76 SAR 38.86 SAR 75

Widest divergence: Multiples (33.51 SAR) versus Asset-Based (16.70 SAR). Highest evidence: Residual Income (75).

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Key figures & financial health

P/E ratio 8.8
P/S ratio 4.56 P/E × margin
EPS (TTM) 2.60 SAR price ÷ EPS = P/E 8.8
Dividend yield 5.7% payout 50.0%
Net margin 51.8% FY2025
Return on equity 11.0% TTM
More key figures
Profitability
Return on assets (EBIT) 1.9% avg 5y
Operating margin 65.1% TTM
Growth
Revenue (TTM) 9.5B SAR TTM
Revenue growth (YoY) +8.7% 3y avg +13.0%
EPS growth (YoY) +6.9%
Balance sheet & cash flow
Free cash flow 1.1B SAR FY2025
Net cash 13.2B SAR FY2025

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 37 · Market factors (momentum, volatility) 69

Profitability 36
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 63
Distance to the 52-week high (market factor)
Net Issuance 40
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

Arab National Bank provides various banking products and services in the Kingdom of Saudi Arabia, Other GCC and the Middle East, Europe, North America, Latin America, Southeast Asia, and internationally. It operates through Retail Banking, Corporate Banking, Treasury, and Investment and Brokerage Services segments.

Full company description

Arab National Bank provides various banking products and services in the Kingdom of Saudi Arabia, Other GCC and the Middle East, Europe, North America, Latin America, Southeast Asia, and internationally. It operates through Retail Banking, Corporate Banking, Treasury, and Investment and Brokerage Services segments. The company offers savings, Murabaha, and SME accounts; time deposits; personal, auto lease, and real estate loans; credit and debit cards; digital wallets; and investment products for individuals. It also provides loans and advances, deposits, and other credit products for corporate and institutional customers, and small and medium sized businesses; and investment management services, as well as asset management services related to dealing, managing, arranging, advising, and custody of securities. In addition, the company offers corporate and commercial banking, project and structured finance, and vision realization solutions; treasury services, such as market related products and services, international instruments, investments, government bonds and sukuk, and e-trader solutions; and transaction banking solutions comprising corporate online access, merchant solutions, collections solutions, liquidity management solutions, specialized market solutions, fintech and open banking solutions, financial solutions, guaranteed bonds, and collection documentary bills. Further, it engages in leasing of heavy equipment; and investment, purchasing, sale, and leasing of land and real estate properties, as well as provides trading and supply chain finance. Arab National Bank was founded in 1979 and is headquartered 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

Arab National Bank reported revenue of 9.9B SAR in FY2025 versus 5.8B SAR in FY2021, a compound +14.4%/yr. Reported net income was 5.1B SAR in FY2025, compounding +23.8%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
9.9B SAR
Latest YoY
+4.3%
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.
+13.0%
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.
+11.1%
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.
+4.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+17.8% (12.1 + 5.7)
Revenue +14.4%/yr
FY21 5.8B SAR
FY22 6.8B SAR
FY23 8.5B SAR
FY24 9.5B SAR
FY25 9.9B SAR
Net income +23.8%/yr
FY21 2.2B SAR
FY22 3.1B SAR
FY23 4.1B SAR
FY24 5.0B SAR
FY25 5.1B SAR
Character of growth · EPS growth decomposed (2014-2025) +2.5 % p.a.
Revenue per share +2.4 %

of which total revenue +5.7 % · buybacks/dilution −3.1 %

EBIT margin +1.6 %
Tax rate −1.7 %
Residual (interest, one-offs) +0.2 %

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). "Arab National Bank Fair Value". https://www.fairvalue-calculator.com/stock/1080

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 41 · Bottom 25%
Fair Value upside +49% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 2% · Top 25%
Net margin (TTM) 55% · Top 25%
Operating margin (TTM) 65% · Top 25%
Revenue growth 9% · Below median
Dividend yield (TTM) 5.7% · Top 25%
Debt / equity 0.04× · Lower than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 8.8× · Cheaper than 75% of peers
P/B 0.24× · Cheaper than 75% of peers
P/S (TTM) 1.24× · Cheaper than 75% of peers
P/FCF 10.8× · Pricier than median

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
VALUE99 · sector 33
FUTURE44 · sector 45
PAST44 · sector 41
HEALTH98 · 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 Aug 30, 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 Arab National Bank (1080) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of 34.21 SAR versus a price of 22.90 SAR, about +49% upside (undervalued).
What is the fair value of 1080?
Our model-based fair value for Arab National Bank is 34.21 SAR (as of Aug 30, 2026), built from audited fundamentals. The current price: 22.90 SAR.
What is the quality score of 1080?
Arab National Bank has a Quality Score of 43/100. 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 Arab National Bank (1080)?
Arab National Bank reported trailing-twelve-month revenue of about 9.5B SAR (latest available figure, as of Aug 30, 2026).
What is the net profit margin of 1080?
The net profit margin of Arab National Bank is about 55.1%, meaning it keeps roughly 55.1% of revenue as net income. Based on the latest reported figures.
Does Arab National Bank pay a dividend?
Arab National Bank currently shows a dividend yield of about 5.68% relative to its recent price (as of Aug 30, 2026).
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