← Market Overview

2081

Governance: A

AWPT

Alkhorayef Water and Power Technologies Co.

120.40 SAR / Share

As of: May 28, 2026

16.5x P/E Ratio Trailing 12 Months

4.6x P/B Ratio Price to Book Value

1.2% Dividend Yield Annual Dividend / Share

4.21B SAR Market Cap Total Valuation

0.46 Beta Systematic Risk Index

55.5% Net Margin Net Profit / Revenue

The Story

AWPT is a vital utility infrastructure player in Saudi Arabia, delivering consistent double-digit top-line expansion and high returns on capital as it modernizes the nation's water and wastewater networks.

Source: Annual 2025 (2026-04-08)

Value Creation +11.5% 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

1.2%

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

+5.3%

Payout Ratio Percent of net profits distributed as dividends

20.5%

Net Margin Net profit margin generated from total operational revenue

55.5%

ROIC Return on Invested Capital

17.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

16.5x

P/B Ratio Market capitalization compared to corporate book value

4.6x

EV / EBITDA Operating multiple reflecting core operational leverage

14.9x

EV / SALES Asset pricing multiple relative to total topline revenue

10.7x

Growth Story

AWPT's growth story resembles a widening river basin, steadily expanding its reach across the Kingdom's water infrastructure. Net revenue has climbed consistently, rising from 1.68 billion SAR in FY 2023 to 1.95 billion SAR in FY 2024, and surging to 2.47 billion SAR in FY 2025. This expansion is underpinned by a sustainable growth rate of 5.34%, driven by a strong five-year average return on invested capital of 17.77% and a disciplined five-year average reinvestment rate of 30.06%. Although the company's remaining performance obligations decreased from 7.35 billion SAR in FY 2024 to 5.49 billion SAR in FY 2025, this substantial backlog continues to provide a deep reservoir of future revenue, ensuring long-term capacity to support the Kingdom's water and wastewater modernization goals.

Profitability Dynamics

Operating like an efficient filtration system, AWPT excels at converting raw revenue into high-quality returns, maintaining a substantial positive gap of 11.47% between its five-year average return on invested capital of 17.77% and its weighted average cost of capital of 6.30%. Gross profit expanded to 460.90 million SAR in FY 2025 from 384.32 million SAR in FY 2024, representing a stable gross margin of 18.6%. Operating income rose to 267.12 million SAR, while net income reached 255.74 million SAR. This profitability is accompanied by significant long-term asset accumulation, notably through concession contract receivables which grew to 843.37 million SAR in FY 2025 from 367.26 million SAR in FY 2024, reflecting the company's expanding role in long-term build-operate-transfer sewage treatment concessions.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.46

Cost of Equity Minimum required rate of return demanded by shareholders

6.2%

WACC Weighted average cost of total debt and equity funding

6.3%

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

23.4%

Risk Factors

While AWPT's business model is highly profitable, it requires navigating deep and turbulent channels of leverage and operational concentration. The company's gearing ratio rose to 64% in FY 2025 from 60% in FY 2024, with total term loans reaching 989.65 million SAR. This leverage is partially mitigated by a low relevered beta of 0.46, reflecting the defensive utility nature of its operations. However, significant risks persist in the form of extreme customer concentration, with just two major government-related clients accounting for 86% of total revenue in FY 2025. Furthermore, the company is managing operational headwinds, including outstanding municipal penalty notices under the Ejada program totaling 101.94 million SAR, against which a provision of 58.23 million SAR has been recorded, alongside cumulative share of losses from its associate, Erwaa Water Company, which exceeded the carrying value of the investment by 34.05 million SAR.

In-Depth Analysis

Research Report

Read our independent analysis →

Explore AWPT's Full Profile

Usool Research tracks AWPT's financials, governance disclosures, valuation metrics, and more. Structured and updated from every filing.

Start Exploring → Sign up free and explore the data.