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1324

Governance: C

SALEH ALRASHED

Saleh Abdulaziz Al Rashed and Sons Co.

55.55 SAR / Share

As of: Mar 26, 2026

11.3x P/E Ratio Trailing 12 Months

2.5x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

1.03B SAR Market Cap Total Valuation

1.07 Beta Systematic Risk Index

12.4% Net Margin Net Profit / Revenue

The Story

A vertically integrated mining and construction materials powerhouse leveraging a high-return capital base to fuel aggressive regional expansion.

Source: Annual 2025 (2026-04-29)

Value Creation +11.1% 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

—

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

+8.7%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

12.4%

ROIC Return on Invested Capital

20.0%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

11.3x

P/B Ratio Market capitalization compared to corporate book value

2.5x

EV / EBITDA Operating multiple reflecting core operational leverage

6.3x

EV / SALES Asset pricing multiple relative to total topline revenue

1.4x

Growth Story

Revenue grew significantly from 599.6 million SAR in fiscal 2024 to 739.5 million SAR in the TTM period, representing a robust upward trajectory. This expansion is underpinned by a sustainable growth rate of 8.67%, driven by a high five-year average ROIC of 20.04% and a reinvestment rate of 43.26%. The company is currently in an aggressive expansion phase, as evidenced by the establishment of seven new subsidiaries in late 2025 focused on mining, crushers, and land freight. This strategic push into quarrying and industrial development suggests a long-term commitment to capturing more of the construction supply chain.

Profitability Dynamics

Saleh Al Rashed demonstrates strong value creation, maintaining an 11.06% positive gap between its ROIC of 20.04% and its WACC of 8.98%. With an operating margin of 14.09% and a net profit margin of 12.38% for the TTM period, the business model efficiently converts revenue into earnings. While the company is heavily investing—evidenced by 133.9 million SAR in TTM capital expenditures—it maintains a healthy cash position of 60.3 million SAR. The ability to generate high returns on invested capital while scaling suggests a competitive advantage in its operational efficiency and resource management within the Saudi mining and materials sector.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.07

Cost of Equity Minimum required rate of return demanded by shareholders

9.0%

WACC Weighted average cost of total debt and equity funding

9.0%

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

5.4%

Risk Factors

The company’s risk profile is characterized by its reliance on Murabaha financing and bank facilities, which are sensitive to market commission rates. While the total debt of 55.9 million SAR is currently offset by a cash balance of 60.3 million SAR, the use of personal guarantees and promissory notes from shareholders for securing facilities highlights a traditional financing structure. Business-specific risks include the inherent difficulty in measuring bulk inventory, which requires technical estimation, and the credit risk associated with trade receivables. Additionally, the recent rapid formation of multiple subsidiaries introduces integration and execution risks as the Group scales its operational complexity.

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 Transaction Approval Framework

The Group conducts transactions with shareholders, affiliates, and key management personnel, stating that terms are approved according to internal policies.

Mitigating Factors: Transactions are stated to be approved in accordance with the Company's internal policies.

Significance: 8/10 Entrenchment

Public Offering and Ownership Dilution

The Capital Market Authority approved the Company's request to offer 5,580,000 shares for public offering, representing 30% of the total shares, for listing on the Main Market (TASI).

Mitigating Factors: The offering is subject to regulatory oversight by the Capital Market Authority (CMA).

For more, click here to view the full governance profile →

In-Depth Analysis