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1833

Governance: D

ALMAWARID

Al Mawarid Manpower Co.

92.40 SAR / Share

As of: May 28, 2026

11.5x P/E Ratio Trailing 12 Months

3.5x P/B Ratio Price to Book Value

2.8% Dividend Yield Annual Dividend / Share

1.85B SAR Market Cap Total Valuation

0.77 Beta Systematic Risk Index

5.8% Net Margin Net Profit / Revenue

The Story

Al Mawarid Manpower Company leverages a highly efficient, asset-light recruitment and placement model to deliver robust revenue growth and exceptional returns on capital, supported by a net-cash balance sheet.

Source: Q1 2026 (2026-05-19)

Value Creation +18.0% 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

2.8%

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

-6.6%

Payout Ratio Percent of net profits distributed as dividends

32.4%

Net Margin Net profit margin generated from total operational revenue

5.8%

ROIC Return on Invested Capital

25.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

11.5x

P/B Ratio Market capitalization compared to corporate book value

3.5x

EV / EBITDA Operating multiple reflecting core operational leverage

10.5x

EV / SALES Asset pricing multiple relative to total topline revenue

0.7x

Growth Story

Al Mawarid has demonstrated remarkable top-line momentum, with revenue climbing from 1.45 billion SAR in FY 2023 to 2.03 billion SAR in FY 2024, and reaching 2.61 billion SAR in FY 2025, culminating in a TTM revenue of 2.78 billion SAR. This rapid expansion is further highlighted by Q1 2026 revenue rising to 758.49 million SAR from 588.68 million SAR in Q1 2025, driven primarily by its dominant Corporate segment. Despite this strong historical growth, the company's 5-year average reinvestment rate stands at -25.94%, leading to a negative sustainable growth rate of -6.65%. This indicates that the business is highly asset-light, requiring minimal capital expenditure (with TTM Capex at just 1.64 million SAR) to support its expansion, allowing it to return substantial capital to shareholders rather than retaining it for internal compounding.

Profitability Dynamics

The company's asset-light operational model translates into exceptional capital efficiency, evidenced by a 5-year average ROIC of 25.63%, which vastly exceeds its WACC of 7.63%, creating a substantial value-creation gap of 18.00%. Operating margins have remained stable, with a TTM operating margin of 6.14% and a profit margin of 5.78%, yielding a TTM net income of 160.71 million SAR. This profitability is underpinned by strong cash generation, allowing the company to fund its operations organically. The high returns on capital relative to its low cost of capital demonstrate that Al Mawarid creates significant economic value for its shareholders, even while operating with thin but highly consistent margins typical of the manpower services industry.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.77

Cost of Equity Minimum required rate of return demanded by shareholders

7.6%

WACC Weighted average cost of total debt and equity funding

7.6%

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

6.6%

Risk Factors

Al Mawarid maintains a highly conservative financial profile, characterized by a net cash position with latest cash of 148.02 million SAR exceeding its total debt of 122.31 million SAR. This strong liquidity cushion mitigates the risks associated with its negative current working capital of -22.00 million SAR, which is common in businesses with high short-term accruals and contract liabilities. However, the company faces operational risks, including its reliance on key related parties like Al-Ayuni Investment and Contracting Company, which contributed 73.46 million SAR in revenue in Q1 2026. Additionally, the business is exposed to regulatory and credit risks, as trade receivables rose to 528.04 million SAR (before provisions) by Q1 2026, requiring active management of expected credit losses.

Governance Disclosures

Rating: D

We track 10 key governance and oversight matters for this company in our database.

Significance: 5/10 Info Asymmetry

Related-Party Revenue with Limak Al Ayuni Joint Venture

The Group generated revenue of SAR 39,228,048 during the three-month period ended March 31, 2026, from rendering labor services to Limak Al Ayuni Joint Venture, which is a joint venture/alliance related to an influential shareholder. The outstanding trade receivable balance from this joint venture was SAR 11,842,084 as of March 31, 2026.

Mitigating Factors: All outstanding balances with these related parties are settled in cash and priced on an arm’s length basis. None of the balances are secured. and no guarantees have been given or received.

Significance: 6/10 Info Asymmetry

Related-Party Revenue Concentration with Al-Ayuni Investment and Contracting Company

The Group rendered labor services to Al-Ayuni Investment and Contracting Company, an investor with significant influence, generating revenue of SAR 73,457,882 during the three-month period ended March 31, 2026, compared to SAR 52,289,822 in the prior period. The outstanding trade receivable balance from this entity was SAR 22,705,588 as of March 31, 2026.

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In-Depth Analysis