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2280
Governance: A

ALMARAI

Almarai Co.

46.10 SAR / Share

As of: May 28, 2026

18.8x P/E Ratio Trailing 12 Months
2.2x P/B Ratio Price to Book Value
2.2% Dividend Yield Annual Dividend / Share
46.10B SAR Market Cap Total Valuation
0.84 Beta Systematic Risk Index
10.9% Net Margin Net Profit / Revenue

Company Profile

Almarai Company is a Saudi Joint Stock Company and a major integrated consumer food and beverage group in the Middle East, with a leading market share in Saudi Arabia. The Group's operations encompass dairy, fruit juices, and related food products under brands like Almarai, Beyti, and Teeba; bakery products under L'usine and 7 Days; poultry under Alyoum and AlBashayer; seafood under Seama; ice cream; infant nutrition under Nuralac and Evolac; and drinking water under Oska and Ival. Almarai operates a vertically integrated business model, including arable farms in Argentina and the USA (Fondomonte), poultry grandparent farming, and value-added meat and poultry processing. The Group maintains an extensive distribution network across the GCC, Egypt, and Jordan, utilizing a long-haul distribution fleet and local distribution centers.

Sector Food and Beverages
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-04-08)
Shares Outstanding 1.00B
Market Cap 46.10B
Enterprise Value 59.34B
Geographic Revenue
Major Customers

The Story

Almarai is a vertically integrated consumer staple powerhouse that leverages a massive regional distribution network and diversified food portfolio to deliver consistent value creation.

Source: Q1 2026 (2026-04-08)

Value Creation +3.9% 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
2.2%
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
+2.8%
Payout Ratio Percent of net profits distributed as dividends
40.7%
Net Margin Net profit margin generated from total operational revenue
10.9%
ROIC Return on Invested Capital
10.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
18.8x
P/B Ratio Market capitalization compared to corporate book value
2.2x
EV / EBITDA Operating multiple reflecting core operational leverage
10.6x
EV / SALES Asset pricing multiple relative to total topline revenue
2.6x

Growth Story

Almarai has demonstrated a consistent upward trajectory in revenue, growing from 19.58 billion SAR in fiscal 2023 to a TTM figure of 22.46 billion SAR. This expansion is underpinned by a sustainable growth rate of 2.79%, fueled by a disciplined five-year average reinvestment rate of 25.54%. The company’s growth capacity is rooted in its ability to successfully scale adjacent categories such as poultry, seafood, and infant nutrition while maintaining its core dairy leadership. By reinvesting a quarter of its operating returns back into its infrastructure—evidenced by a TTM Capex of 4.38 billion SAR—Almarai continues to solidify its capacity for long-term volume growth across the Middle East.

Profitability Dynamics

The company’s profitability is defined by its efficient capital deployment, maintaining a five-year average ROIC of 10.91% against a WACC of 6.66%. This positive spread of 4.25% confirms that Almarai is a consistent value creator. With a TTM operating margin of 13.63% and a net profit margin of 10.94%, the business demonstrates strong cost control despite the complexities of managing biological assets and international arable operations. The integrated nature of the business allows it to capture margins at every stage of production, resulting in a NOPAT of approximately 2.90 billion SAR for the TTM period, showcasing robust cash flow generation capabilities.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index
0.84
Cost of Equity Minimum required rate of return demanded by shareholders
7.9%
WACC Weighted average cost of total debt and equity funding
7.0%
Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors
30.7%

Risk Factors

Almarai’s risk profile is characterized by the defensive nature of the consumer staples sector, reflected in its relatively low relevered beta of 0.76. However, the company carries a significant debt load of 14.14 billion SAR, which requires careful management of interest obligations. Beyond financial leverage, the business faces operational risks associated with its international footprint, particularly in volatile markets like Egypt and Jordan, and its reliance on global arable farms for feed. The use of derivative financial instruments and the fair-value measurement of biological assets further introduce non-operating volatility to the balance sheet, though its dominant market position provides a substantial buffer against localized economic downturns.

Governance Disclosures

Rating: A

We track 5 key governance and oversight matters for this company in our database.

Significance: 3/10 Info Asymmetry

Reliance on Third-Party Agency Agreements for Regional Distribution

Distribution operations in Kuwait and Qatar are conducted through agency agreements with Al Kharafi Brothers Dairy Products Company Limited and Khalid for Foodstuff and Trading Company, respectively, rather than through direct subsidiaries.

Significance: 4/10 Info Asymmetry

Centralized Management of International Assets via Bahraini Entity

The Group manages its non-GCC business operations, including International Dairy and Juice Limited (Egypt and Jordan) and Fondomonte (USA and Argentina), through Almarai Investment Holding Company W.L.L., which is incorporated in Bahrain.

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