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2090

Governance: A

NGC

National Gypsum Co.

15.10 SAR / Share

As of: Mar 26, 2026

— P/E Ratio Trailing 12 Months

1.5x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

478.17M SAR Market Cap Total Valuation

1.02 Beta Systematic Risk Index

-50.8% Net Margin Net Profit / Revenue

The Story

National Gypsum Company is navigating a period of significant financial contraction, marked by widening net losses and a material uncertainty regarding its ability to continue as a going concern.

Source: Annual 2025 (2026-04-13)

Value Creation -8.0% 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

—

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

-0.3%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-50.8%

ROIC Return on Invested Capital

0.7%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

1.5x

EV / EBITDA Operating multiple reflecting core operational leverage

47.5x

EV / SALES Asset pricing multiple relative to total topline revenue

7.9x

Growth Story

The company's growth trajectory is currently under pressure, with revenue declining from SAR 63.3 million in fiscal 2024 to SAR 60.6 million for the TTM period. This top-line contraction is compounded by a negative five-year average reinvestment rate of -48.01%, indicating that capital is being consumed by operational requirements rather than fueling expansion. Consequently, the sustainable growth rate stands at -0.35%, reflecting a lack of internal capacity to fund growth. While the company has ongoing capital work-in-progress, such as the Alpha & Beta Factory in Dammam and the Gypsum Wall Factory in Riyadh, these projects have been hampered by significant impairment losses totaling SAR 29.7 million, which offsets the potential for immediate capacity-driven revenue increases.

Profitability Dynamics

Profitability metrics reveal a challenging environment for value creation, as the company's five-year average ROIC of 0.73% falls significantly short of its WACC of 8.77%, resulting in a value-destructive gap of -8.04%. The bottom line has deteriorated sharply, with net losses widening from SAR 12.7 million in fiscal 2024 to a TTM net loss of SAR 30.8 million, representing a negative profit margin of -50.84%. This decline was exacerbated by a SAR 10.7 million regulatory penalty and substantial asset impairments. While the company maintains a portfolio of equity investments in major Saudi entities like Aramco and Kayan to generate dividend income, these have not been sufficient to offset the core manufacturing losses and the lack of operating income (EBIT) in the TTM period.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.02

Cost of Equity Minimum required rate of return demanded by shareholders

8.8%

WACC Weighted average cost of total debt and equity funding

8.8%

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

0.0%

Risk Factors

The risk profile is dominated by a material uncertainty regarding the company's ability to continue as a going concern, as highlighted by auditors due to current liabilities exceeding current assets by SAR 10.8 million. Although the latest data shows zero long-term debt, the company relies on short-term Islamic Murabaha facilities from Riyadh Bank, which were recently rescheduled with a final maturity in November 2026. Operational risks are further heightened by a recent notification from Saudi Aramco regarding fuel price adjustments effective January 2026, which may increase production costs. Additionally, the company faces market risk from its equity portfolio, which saw significant fair value declines in 2025 across several listed holdings.

Governance Disclosures

Rating: A

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

Significance: 5/10 Entrenchment

Board-Directed Statutory Reserve Reclassification

Following the implementation of the new Saudi Companies Law, the Board of Directors approved the transfer of SAR 30,765,675 from the statutory reserve to retained earnings, effectively changing the restriction level on those funds.

Mitigating Factors: The transfer was made in response to the abolition of the mandatory reserve requirement under the new Saudi Companies Law effective January 2023.

Significance: 3/10 Tunneling

Key Management Personnel Compensation

The company discloses that its related party transactions are primarily comprised of salaries, allowances, and remunerations paid to senior executive staff and members of the Board of Directors.

Mitigating Factors: The company notes that transactions are disclosed regardless of whether they are conducted on terms equivalent to arm's-length transactions.

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

In-Depth Analysis