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2080

Governance: A

GASCO

National Gas and Industrialization Co.

77.35 SAR / Share

As of: May 28, 2026

25.0x P/E Ratio Trailing 12 Months

3.0x P/B Ratio Price to Book Value

2.8% Dividend Yield Annual Dividend / Share

5.80B SAR Market Cap Total Valuation

0.38 Beta Systematic Risk Index

7.7% Net Margin Net Profit / Revenue

The Story

A defensive utility powerhouse with a dominant market position in LPG distribution and a consistent track record of value creation.

Source: Q1 2026 (2026-04-09)

Value Creation +5.7% 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

+2.5%

Payout Ratio Percent of net profits distributed as dividends

71.1%

Net Margin Net profit margin generated from total operational revenue

7.7%

ROIC Return on Invested Capital

11.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

25.0x

P/B Ratio Market capitalization compared to corporate book value

3.0x

EV / EBITDA Operating multiple reflecting core operational leverage

23.1x

EV / SALES Asset pricing multiple relative to total topline revenue

1.9x

Growth Story

Revenue has shown steady expansion, climbing from 2.08 billion SAR in fiscal 2022 to 3.0 billion SAR in the TTM period. This growth is supported by a sustainable growth rate of 2.53%, derived from a 5-year average ROIC of 11.6% and a reinvestment rate of 21.76%. The company is actively diversifying through subsidiaries like Gas Solutions Company and National Storage Company, while also expanding into IT and industrial maintenance to capture broader segments of the energy value chain.

Profitability Dynamics

GASCO maintains a healthy spread between its ROIC of 11.6% and a WACC of 5.87%, indicating consistent value creation for shareholders. While operating margins are relatively lean at 4.88% TTM, the net profit margin is higher at 7.74%, bolstered by significant investment income from associates and unquoted equity instruments, such as the National Industrial Gases Company. Recent management decisions to revise the estimated useful lives of assets—extending the depreciation period for buildings and machinery—have also provided a tailwind to reported earnings by reducing depreciation expenses.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.38

Cost of Equity Minimum required rate of return demanded by shareholders

5.9%

WACC Weighted average cost of total debt and equity funding

5.9%

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

1.5%

Risk Factors

The company exhibits a highly defensive risk profile, evidenced by a relevered beta of 0.37, suggesting low sensitivity to broader market volatility. Leverage remains minimal with total debt of 88.15 million SAR against a cash position of 76.12 million SAR. Key risks include regulatory dependencies, such as the 280 million SAR bank guarantee provided to Saudi Aramco for product supply, and ongoing zakat assessments for the 2021-2022 period currently under objection.

Governance Disclosures

Rating: A

We track 14 key governance and oversight matters for this company in our database.

Significance: 4/10 Tunneling

Key Management and Board Remuneration

Total compensation for key management personnel and Board of Directors members reached SR 8,402,497 for the first quarter of 2025. This includes SR 6.36 million in short-term benefits and SR 1.41 million in Board remunerations.

Mitigating Factors: Remuneration is recognized as an expense and categorized by type (short-term, post-retirement, and board-specific).

Significance: 5/10 Info Asymmetry

Procurement Transactions with Associate

The Group engaged in significant procurement from Saudi Gas Cylinder Factory Company, an associate entity. Purchases of gas cylinders and tanks amounted to SR 17,883,284 for the three-month period ended 31 March 2025, an increase from SR 10,554,440 in the prior year period.

Mitigating Factors: Pricing policies and terms of these transactions are disclosed as being approved by the Group’s management.

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

In-Depth Analysis