UACC
Umm Al-Qura Cement Co.
As of: Mar 26, 2026
Company Profile
Umm Al-Qura Cement Company (UACC) is a Saudi Joint Stock Company engaged in the manufacture of ordinary (Portland) cement, sulfate-resistant cement, white cement, and clinker. The company operates a plant in Taif and sells its products within the Kingdom of Saudi Arabia through distributors and individuals. It holds an industrial license valid until March 2030 and pays exploitation fees to the Ministry of Industry and Mineral Resources for limestone and clay extraction.
The Story
UACC is a regional cement specialist demonstrating a strong revenue recovery and healthy operating margins, yet it currently faces significant liquidity pressures and a return profile that trails its cost of capital.
Source: Q1 2026 (2026-04-30)
Performance & Distributions
Market Pricing Multiples
Growth Story
UACC is currently navigating a high-momentum growth phase, with revenue climbing from 168.9 million SAR in fiscal 2023 to a TTM figure of 306.9 million SAR. This upward trajectory is further evidenced by the three months ended March 31, 2026, where sales reached 88.3 million SAR, a 46% increase over the same period in 2025. Despite this top-line surge, the company's long-term sustainable growth rate is calculated at a modest 0.90%. This discrepancy suggests that while current market demand is driving volume, the company's internal capacity to fund expansion is limited by a five-year average reinvestment rate of 19.1% and a return on capital that has historically been constrained.
Profitability Dynamics
The company maintains robust operational efficiency, reflected in a TTM operating margin of 23.8% and a net profit margin of 19.4%. However, a deeper look at value creation reveals a persistent gap; the five-year average ROIC of 4.72% is significantly lower than the WACC of 8.93%, resulting in a negative value-creation gap of 4.20%. While UACC is generating absolute profits—with TTM net income of 59.5 million SAR—it is not yet earning a sufficient return to cover its cost of equity (9.77%) and debt. Cash flow generation is heavily tied to its inventory cycle, particularly its clinker 'work in progress' which is valued at 396.3 million SAR and can be stored for up to five years.
Risk & Capital Structure
Risk Factors
The risk profile is dominated by a critical liquidity event involving the Saudi Industrial Development Fund (SIDF) loan. Following a missed installment in late 2025, the fund issued a demand letter for full settlement, forcing the reclassification of the entire 160.7 million SAR loan balance into current liabilities. This creates an immediate financial obligation that overshadows the company's 18.7 million SAR cash position. Furthermore, with a re-levered beta of 1.24, UACC is more volatile than the broader market, sensitive to both the cyclical nature of the Saudi construction sector and evolving regional geopolitical developments that could impact operational costs or supply chains.
Governance Disclosures
We track 12 key governance and oversight matters for this company in our database.
Statutory Reserve Reclassification to Retained Earnings
The Company transferred its entire statutory reserve balance of SAR 32,070,228 to retained earnings. This action followed an Extraordinary General Assembly approval to amend the Articles of Association in compliance with the new Saudi Companies Law.
Related Party Remuneration
Total compensation paid to senior management and members of the Board of Directors and its committees amounted to SAR 5,882,900 in 2025, compared to SAR 5,597,034 in 2024.
Research Report
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