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1321

Governance: C

EAST PIPES

East Pipes Integrated Company for Industry

151.00 SAR / Share

As of: Mar 26, 2026

9.6x P/E Ratio Trailing 12 Months

3.4x P/B Ratio Price to Book Value

4.0% Dividend Yield Annual Dividend / Share

4.76B SAR Market Cap Total Valuation

1.03 Beta Systematic Risk Index

24.8% Net Margin Net Profit / Revenue

The Story

A high-efficiency manufacturer of spiral steel pipes demonstrating robust revenue expansion and significant value creation above its cost of capital.

Source: Q3 2026 (2026-02-02)

Value Creation +12.9% 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

4.0%

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

+12.1%

Payout Ratio Percent of net profits distributed as dividends

38.2%

Net Margin Net profit margin generated from total operational revenue

24.8%

ROIC Return on Invested Capital

21.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

9.6x

P/B Ratio Market capitalization compared to corporate book value

3.4x

EV / EBITDA Operating multiple reflecting core operational leverage

8.5x

EV / SALES Asset pricing multiple relative to total topline revenue

2.4x

Growth Story

East Pipes has demonstrated a consistent upward trajectory, with revenue growing from 1.44 billion SAR in fiscal 2023 to 1.83 billion SAR in fiscal 2025, reaching nearly 2.0 billion SAR on a TTM basis. This expansion is supported by a sustainable growth rate of 12.06%, fueled by a disciplined five-year average reinvestment rate of 55.14%. By channeling over half of its operating returns back into the business, the company has successfully scaled its manufacturing capacity to meet the demands of the Kingdom's industrial and infrastructure sectors.

Profitability Dynamics

The company’s profitability profile is characterized by high efficiency, evidenced by a TTM operating margin of 27.02% and a net profit margin of 24.76%. More importantly, East Pipes is a significant value creator, maintaining a 13.42% positive gap between its 21.87% average ROIC and its 8.45% WACC. This spread indicates that for every riyal of capital deployed, the company generates returns well in excess of its financing costs. While TTM capital expenditure remains modest at 8.5 million SAR, the company maintains a strong working capital position of 965.9 million SAR to support its operational cycle.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.03

Cost of Equity Minimum required rate of return demanded by shareholders

8.8%

WACC Weighted average cost of total debt and equity funding

9.0%

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

1.2%

Risk Factors

From a risk perspective, East Pipes operates with a conservative capital structure, carrying only 55.1 million SAR in total debt against a market capitalization of 4.8 billion SAR. This low leverage is reflected in a beta of 0.935, suggesting a risk profile slightly lower than the broader market. However, the business is inherently tied to large-scale project cycles and raw material costs. Financial disclosures indicate that the company relies on significant trade receivables of 670.9 million SAR and maintains substantial inventory levels of 247.9 million SAR, which are typical for heavy industrial manufacturing but require careful liquidity management.

Governance Disclosures

Rating: C

We track 4 key governance and oversight matters for this company in our database.

Significance: 3/10 Info Asymmetry

Related Party Receivables

The company discloses other receivables (other debitor) amounting to SAR 6,907,892, which are linked to related party transactions.

Significance: 8/10 Info Asymmetry

Significant Related Party Balances in Current Liabilities

The company reports other current liabilities (other account payable) totaling SAR 255,864,733, which are associated with related party disclosures. This amount is significantly higher than the trade account payable of SAR 37,595,249.

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In-Depth Analysis