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1301

Governance: C

ASLAK

United Wire Factories Co.

17.32 SAR / Share

As of: Mar 26, 2026

93.8x P/E Ratio Trailing 12 Months

1.4x P/B Ratio Price to Book Value

2.9% Dividend Yield Annual Dividend / Share

486.35M SAR Market Cap Total Valuation

1.04 Beta Systematic Risk Index

0.7% Net Margin Net Profit / Revenue

The Story

ASLAK is a specialized wire manufacturer navigating a period of significant margin compression while pivoting toward strategic inorganic growth through a major industrial acquisition.

Source: Annual 2025 (2026-04-07)

Value Creation -1.8% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)

Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price

2.9%

Sustainable Growth Rate Rate at which company can grow internally using reinvested profits

-11.7%

Payout Ratio Percent of net profits distributed as dividends

270.9%

Net Margin Net profit margin generated from total operational revenue

0.7%

ROIC Return on Invested Capital

6.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

93.8x

P/B Ratio Market capitalization compared to corporate book value

1.4x

EV / EBITDA Operating multiple reflecting core operational leverage

24.0x

EV / SALES Asset pricing multiple relative to total topline revenue

0.6x

Growth Story

ASLAK's revenue trajectory showed a recovery in fiscal 2025, reaching 770.5 million SAR compared to 707.3 million SAR in fiscal 2024, though it remains below the 792.8 million SAR achieved in fiscal 2023. Despite this top-line rebound, the company's long-term growth capacity is constrained, evidenced by a negative Sustainable Growth Rate of -11.68%. This is driven by a five-year average reinvestment rate of -1.71%, indicating that the company has historically returned more capital to shareholders than it has plowed back into its core operations. To counter this organic stagnation, ASLAK has shifted its strategy toward inorganic expansion, signing a share purchase agreement in December 2025 to acquire a 40% stake in Al-Ra'idah Industrial Investment Company, a move intended to diversify its industrial footprint.

Profitability Dynamics

The profitability narrative for fiscal 2025 is one of intense pressure, with the operating margin thinning to 0.76% TTM from significantly higher historical levels. This contraction saw operating income drop from 25.3 million SAR in fiscal 2023 to just 5.8 million SAR in the current period. ASLAK's five-year average ROIC of 6.84% sits below its WACC of 8.69%, resulting in a negative value creation gap of -1.85%. While the company remains profitable with a net income of 5.2 million SAR, the razor-thin profit margin of 0.67% highlights a vulnerability to fluctuations in the cost of materials and production supplies, which accounted for 678.4 million SAR of the total cost of revenue.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.04

Cost of Equity Minimum required rate of return demanded by shareholders

8.8%

WACC Weighted average cost of total debt and equity funding

8.7%

Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors

1.6%

Risk Factors

ASLAK's risk profile is characterized by low financial leverage but high operational sensitivity. The company maintains a strong liquidity position with 48.15 million SAR in cash against minimal debt of 7.99 million SAR, which primarily consists of lease liabilities. This net-cash position provides a buffer against its current margin volatility. However, the company faces significant execution risk regarding its pending acquisition of Al-Ra'idah, which is subject to regulatory and shareholder approvals. Additionally, with a beta of 1.04, the company's market risk is closely aligned with the broader Saudi equity market, while its heavy reliance on the construction sector exposes it to cyclical downturns in national infrastructure spending.

Governance Disclosures

Rating: C

We track 8 key governance and oversight matters for this company in our database.

Significance: 8/10 Entrenchment

Acquisition of Al-Ra'idah via Share Issuance

The company signed a share purchase agreement to acquire 40% of the share capital of Al-Ra'idah Industrial Investment Company by issuing new compensation shares to the selling shareholders, which will result in a capital increase.

Mitigating Factors: The acquisition is subject to approval from the Capital Market Authority, the General Authority for Competition, and the company's Extraordinary General Assembly.

Significance: 4/10 Tunneling

Extended Credit Terms for Related Party Service Contract

The company entered into a service contract with a related party that features extended payment terms over a four-year period, which contains a significant financing component.

Mitigating Factors: Revenue is recognized at the present value of the consideration due, and finance income is recognized over the payment period using the effective interest rate method.

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In-Depth Analysis