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2150

Governance: B

ZOUJAJ

The National Company for Glass Industries

37.72 SAR / Share

As of: Mar 26, 2026

14.8x P/E Ratio Trailing 12 Months

1.5x P/B Ratio Price to Book Value

1.3% Dividend Yield Annual Dividend / Share

1.24B SAR Market Cap Total Valuation

1.05 Beta Systematic Risk Index

65.1% Net Margin Net Profit / Revenue

The Story

ZOUJAJ is a manufacturing entity currently navigating operational headwinds in its core glass bottle production while relying heavily on high-performing float glass joint ventures for bottom-line profitability.

Source: Annual 2025 (2026-03-30)

Value Creation +1.8% 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

1.3%

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

+0.2%

Payout Ratio Percent of net profits distributed as dividends

19.7%

Net Margin Net profit margin generated from total operational revenue

65.1%

ROIC Return on Invested Capital

10.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

14.8x

P/B Ratio Market capitalization compared to corporate book value

1.5x

EV / EBITDA Operating multiple reflecting core operational leverage

42.0x

EV / SALES Asset pricing multiple relative to total topline revenue

9.8x

Growth Story

The growth story for ZOUJAJ is currently one of operational contraction in its primary manufacturing segment. Revenue has experienced a steady decline over the last three fiscal periods, falling from 153.92 million in FY 2023 to 128.57 million TTM. This downward trend is reflected in a minimal sustainable growth rate of 0.15%, calculated from a modest 5-year average reinvestment rate of 1.45%. Despite the shrinking top line, the company is actively reinvesting in its infrastructure, with TTM capital expenditures reaching 45.29 million, focused on enhancing production lines and furnace rebuilds to stabilize long-term capacity.

Profitability Dynamics

ZOUJAJ presents a bifurcated profitability profile where core operations are struggling while investments thrive. The company's TTM operating income was negative 1.74 million, resulting in a negative operating margin as production costs and depreciation weighed on the factory's performance. However, the company remains a long-term value creator, maintaining a 5-year average ROIC of 10.57% which exceeds its WACC of 8.79%. This value creation is driven by its joint ventures, Gulf Guard and Guardian Ras Al Khaimah, which contributed 90.51 million in profit shares during the period. Consequently, ZOUJAJ achieved a high TTM net profit margin of 65.07%, demonstrating that its bottom line is decoupled from its internal manufacturing efficiency.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.05

Cost of Equity Minimum required rate of return demanded by shareholders

8.9%

WACC Weighted average cost of total debt and equity funding

8.8%

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

2.6%

Risk Factors

The risk profile is defined by operational and legal hurdles rather than financial overextension. ZOUJAJ maintains a conservative capital structure with a gearing ratio of only 3% and total debt of 32.07 million. However, the company faced a significant operational setback during the year due to a fire incident at its Riyadh factory, which caused machinery damage and business interruption. Furthermore, the acquisition of Silica Mining Company has led to legal disputes and a 1.46 million impairment on exploration licenses due to third-party land encroachments. With a relevered beta of 1.05, the company's valuation remains sensitive to both industrial cycles and the resolution of these pending litigation matters.

Governance Disclosures

Rating: B

We track 9 key governance and oversight matters for this company in our database.

Significance: 3/10 Entrenchment

Statutory Reserve Reclassification to Retained Earnings

Following changes in the Saudi Companies Law, the General Assembly approved the transfer of the Company's statutory reserve to retained earnings on June 1, 2025. Previously, the Company was required to transfer 10% of net profit to this non-distributable reserve until it reached 30% of share capital.

Mitigating Factors: The transfer was approved by the General Assembly and aligns with updated national corporate regulations.

Significance: 4/10 Info Asymmetry

Remuneration of Directors and Key Management Personnel

The Company disclosed total compensation for directors and key management personnel (including the top six senior executives) amounting to SAR 6,057,239 for the 2025 fiscal year. This includes SAR 2,594,932 in annual bonuses and SAR 2,832,123 in directors' expenses.

Mitigating Factors: Transactions are disclosed as being carried out on an arm's length basis and conditions are approved by the Company or its Board of Directors.

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In-Depth Analysis