What Chubb Arabia Cooperative Insurance Company’s (TADAWUL:8240) 29% Share Price Gain Is Not Telling You
Chubb Arabia Cooperative Insurance Company (TADAWUL:8240) shares have had a really impressive month, gaining 29% after a shaky period beforehand. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 5.1% over the last year.
Since its price has surged higher, when almost half of the companies in Saudi Arabia’s Insurance industry have price-to-sales ratios (or “P/S”) below 0.9x, you may consider Chubb Arabia Cooperative Insurance as a stock not worth researching with its 6.7x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
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