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Governance: A

APC

Arabian Pipes Co.

6.90 SAR / Share

As of: May 28, 2026

15.3x P/E Ratio Trailing 12 Months

2.7x P/B Ratio Price to Book Value

1.6% Dividend Yield Annual Dividend / Share

1.38B SAR Market Cap Total Valuation

1.22 Beta Systematic Risk Index

11.0% Net Margin Net Profit / Revenue

The Story

APC is a petrochemical manufacturer navigating a period of revenue contraction while maintaining positive spreads over its cost of capital and returning value through dividends and bonus shares.

Source: Q1 2026 (2026-05-06)

Value Creation +3.8% 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

1.6%

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

+0.5%

Payout Ratio Percent of net profits distributed as dividends

24.9%

Net Margin Net profit margin generated from total operational revenue

11.0%

ROIC Return on Invested Capital

13.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

15.3x

P/B Ratio Market capitalization compared to corporate book value

2.7x

EV / EBITDA Operating multiple reflecting core operational leverage

10.0x

EV / SALES Asset pricing multiple relative to total topline revenue

1.8x

Quality Radar

Where this company sits versus sector peers on observable fundamentals.

Percentiles are versus sector peers. Scores fill in as new annual filings are processed; “N/A” means not enough data yet.

Growth Story

APC's revenue trajectory shows a decline from 1,138.3 million SAR in fiscal 2024 to a TTM figure of 819.7 million SAR. This contraction is reflected in a low sustainable growth rate of 0.55%, calculated from a five-year average ROIC of 13.86% and a modest reinvestment rate of 3.95%. Despite the top-line pressure, the company is continuing targeted capital projects, including a new warehouse and machinery upgrades totaling 7.7 million SAR in capital work in progress, expected to be operational during 2026. The recent proposal to increase share capital from 200 million to 252 million SAR through the capitalization of retained earnings suggests a focus on strengthening the balance sheet structure rather than external expansion.

Profitability Dynamics

The company maintains a value-creating profile with a five-year average ROIC of 13.86%, which sits 3.82% above its WACC of 10.04%. However, margins have tightened alongside the revenue decline; the operating margin for the TTM period stands at 13.6%, compared to higher historical levels. Net income for the TTM period reached 90.4 million SAR, supporting a profit margin of 11.0%. While the company generated 103.6 million SAR in NOPAT (TTM), it continues to allocate capital toward maintenance and infrastructure, with TTM capital expenditures reaching 92.0 million SAR. This level of spending, relative to the current operating income of 111.8 million SAR, indicates that a significant portion of cash flow is being directed toward sustaining existing operations and completing ongoing facility improvements.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.22

Cost of Equity Minimum required rate of return demanded by shareholders

9.7%

WACC Weighted average cost of total debt and equity funding

10.0%

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

12.8%

Risk Factors

APC’s risk profile is characterized by a relevered beta of 1.22, indicating sensitivity to market movements. Financial risk is managed through short-term bank facilities, which increased to 151 million SAR by March 2026 to support working capital requirements. These facilities are secured by promissory notes and pledges on trade receivables, carrying covenants related to leverage ratios. Operational risks include the reliance on land leased from government authorities for its Riyadh and Jubail buildings. Additionally, the company faces the inherent volatility of the petrochemical sector, as evidenced by the revenue fluctuations between fiscal 2024 and the current TTM period.

Governance Disclosures

Rating: A

We track 6 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Executive and Board Compensation

The company discloses that transactions with related parties during the period include salaries, bonuses, and allowances of board of directors' members and senior executives.

Significance: 4/10 Entrenchment

Shareholder Dividend Approval

The Extraordinary General Assembly approved a Board recommendation to distribute SR 22.5 million in cash dividends (SR 0.15 per share) for the 2024 period.

Mitigating Factors: The distribution was approved by the Extraordinary General Assembly.

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In-Depth Analysis