Three questions before buying any stock: Mobarakeh Steel trades at 6.94 times trailing earnings (November 11, 2026)

Before buying a stock, three questions distinguish a business from a ticker or a queue: what does the company sell, where does its profit come from, and how does the price compare with that profit? Mobarakeh Steel provides an example that can be checked against its Codal filings and Sahmino's dated price series. The accounts used here are the company's own, not consolidated, and its interim statement for the six months ended September 22, 2026 is unaudited. Codal prints amounts in millions of rials; amounts below are converted to billions of rials.

Question one: what does it sell?

Mobarakeh Steel's monthly activity filing, tracing number 1621524 for the month ended October 22, 2026, separates sales into three channels. The six months to September 22 brought 2,509,422 billion rials in revenue, matching operating revenue in its income statement. Domestic sales were 1,729,345 billion rials, or 68.9% of the total. Services contributed 629,644 billion rials, or 25.1%, and exports 150,432 billion rials, or 6.0%. Within domestic sales, hot products were the largest line at 737,582 billion rials, 29.4% of total revenue, followed by cold products at 552,859 billion rials, 22.0%. The company principally sells steel products at home. The implication for reading the next report is to compare domestic prices and volumes, not to mistake an export headline for the bulk of revenue. These percentages describe this six-month period and do not fix the future sales mix.

Question two: where does profit come from?

For every 100 rials of revenue in that six-month statement, cost of sales was 70.1 rials, leaving 29.9 rials of gross profit, or 749,835 billion rials in all. Operating profit was 679,985 billion rials, 27.1% of revenue, profit before tax was 685,311 billion rials and net profit was 591,629 billion rials, 23.6% of revenue. Net profit was 133% above the restated 253,914 billion rials for the comparable six months a year earlier. Other non-operating income of 118,707 billion rials was almost offset by finance costs of 113,380 billion rials: operating profit accounted for 99.2% of pretax profit. The main earnings source was making and selling steel, rather than a side income line.

The cash-flow statement in the same standalone filing reports 476,772 billion rials of net operating cash flow, or 80.6% of the 591,629 billion rials net profit. Recompute it using the printed millions of rials: 476,771,599 divided by 591,629,286 equals approximately 0.806. A qualification matters: income tax charged for the period was 93,682 billion rials while only 14,000 billion rials was paid in cash. Some of the cash-flow relationship reflects unpaid tax. Sahmino's earlier Mobarakeh Steel earnings and cash-flow report reads the same filing alongside retail investor flows.

Question three: where is price relative to earnings?

The traded closing price on Tuesday, November 10, 2026 was 4,810 rials. At 09:35 Tehran on November 11, the last trade was 4,950 rials, which was not a settled closing price. Trailing earnings per share were about 693 rials: 518 rials for fiscal 2025/26, plus 306 rials for the six months to September 2026, minus the restated 131 rials for the equivalent six months in 2025. Using the less-rounded trailing EPS from Sahmino's rebuilt card, 4,810 divided by 692.88 gives 6.94 times earnings. The basic-metals sector P/E in Sahmino's November 11 nightly card was 11.75. The company's multiple was about 41% below that reference, using 11.75 as the percentage base.

A low sector-relative multiple is different from a high earnings yield relative to government paper. The inverse of 6.94 is about 14.4% in annual earnings yield, while Sahmino's median yield to maturity of Iranian Treasury bills on November 10 was 42.5%. Pricing also reflects expectations for future profits, not simply the last year's earnings. The stock has more than doubled from its traded 52-week low of 2,182 rials on August 16. Read the pitfalls of a low P/E for why a multiple alone cannot settle valuation.

Takeaway

The three questions yield three different measurements: 68.9% of sales were domestic, operating cash flow was 80.6% of net profit, and the settled-price trailing multiple was 6.94. Sales mix comes from a monthly filing, cash conversion from the cash-flow statement, and valuation from a dated closing price and earnings basis. View the Mobarakeh Steel page on Sahmino and its valuation card to place these readings side by side. The calculation excludes trading costs and the bid-ask spread. Trailing earnings combine an unaudited interim statement with a prior annual period; they are not a single column printed in the interim filing.