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1303

Governance: A

EIC

Electrical Industries Co.

15.61 SAR / Share

As of: May 28, 2026

24.9x P/E Ratio Trailing 12 Months

12.9x P/B Ratio Price to Book Value

1.6% Dividend Yield Annual Dividend / Share

17.37B SAR Market Cap Total Valuation

0.79 Beta Systematic Risk Index

28.4% Net Margin Net Profit / Revenue

The Story

Electrical Industries Company (EIC) is a high-performing manufacturer of electrical equipment in Saudi Arabia, delivering robust revenue growth and exceptional returns on capital driven by regional infrastructure expansion.

Source: Q1 2026 (2026-05-05)

Value Creation +20.8% 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

1.6%

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

+24.9%

Payout Ratio Percent of net profits distributed as dividends

39.9%

Net Margin Net profit margin generated from total operational revenue

28.4%

ROIC Return on Invested Capital

28.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

24.9x

P/B Ratio Market capitalization compared to corporate book value

12.9x

EV / EBITDA Operating multiple reflecting core operational leverage

17.9x

EV / SALES Asset pricing multiple relative to total topline revenue

7.0x

Growth Story

EIC's revenue trajectory demonstrates a powerful upward trend, expanding from 1,559,350,954 SAR in FY 2023 to 1,987,068,838 SAR in FY 2024, and reaching 2,296,241,064 SAR in FY 2025, with TTM revenue climbing further to 2,450,990,112 SAR. This rapid expansion is supported by a high five-year average reinvestment rate of 87.06%. Combined with a stellar five-year average Return on Invested Capital (ROIC) of 28.60%, EIC boasts a sustainable growth rate of 24.90%. This indicates a strong internal capacity to fund and sustain its expansion without relying excessively on external capital, allowing the company to continuously scale its manufacturing and assembly operations to meet the Kingdom's growing electrical infrastructure needs.

Profitability Dynamics

The company's profitability profile is highlighted by its exceptional value creation, evidenced by a massive positive gap of 20.82% between its five-year average ROIC of 28.60% and its WACC of 7.78%. This value creation is driven by strong operational efficiency, with EIC achieving an operating margin of 37.74% and a net profit margin of 28.45% over the TTM period. Operating income has grown consistently, rising from 264,522,077 SAR in FY 2023 to 665,315,055 SAR in FY 2024, and reaching 860,269,540 SAR in FY 2025, before hitting 925,046,738 SAR in the TTM period. This strong profitability translates into robust cash generation, supporting capital expenditures of 175,549,354 SAR over the TTM period and enabling substantial dividend distributions, including a resolved H2 2025 dividend of 140.625 million SAR and a recommended additional dividend of 281.250 million SAR.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.79

Cost of Equity Minimum required rate of return demanded by shareholders

7.7%

WACC Weighted average cost of total debt and equity funding

7.8%

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

0.3%

Risk Factors

EIC maintains a highly conservative leverage profile, with latest total debt of only 54,575,037 SAR against a substantial cash balance of 244,095,598 SAR, resulting in a net cash position. This strong liquidity is further supported by a current working capital of 1,510,763,379 SAR. The company's market risk is moderate, with a relevered beta of 0.785. However, EIC faces business-specific risks, including significant off-balance sheet commitments such as bank guarantees of 770,071,029 SAR and letters of credit of 280,492,951 SAR as of March 31, 2026. Additionally, the company is navigating an ongoing legal appeal regarding a 26.1 million penalty imposed by the General Authority for Competition in 2024; although EIC received favorable rulings from lower courts, the final outcome remains pending at the Supreme Administrative Court, preventing the reversal of the previously recognized expense.

Governance Disclosures

Rating: A

We track 12 key governance and oversight matters for this company in our database.

Significance: 1/10 Tunneling

Related Party Transactions with EVOSTEL

During the three-month period ended March 31, 2026, the Group incurred costs and expenses charged by EVOSTEL, a related party, totaling SR 83,232.

Significance: 2/10 Tunneling

Outstanding Balance Due from Al Toukhi Company

The Group has an outstanding balance due from Al Toukhi Company for Industrial Trading and Contracting amounting to SR 980,000 as of March 31, 2026, which remained unchanged from December 31, 2025.

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In-Depth Analysis