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3030

Governance: A

SAUDI CEMENT

Saudi Cement Co.

34.60 SAR / Share

As of: Mar 26, 2026

14.0x P/E Ratio Trailing 12 Months

2.5x P/B Ratio Price to Book Value

7.2% Dividend Yield Annual Dividend / Share

5.29B SAR Market Cap Total Valuation

1.09 Beta Systematic Risk Index

22.3% Net Margin Net Profit / Revenue

The Story

A high-margin, low-leverage industrial leader that prioritizes consistent value creation and shareholder returns over aggressive expansion.

Source: Q3 2025 (2025-11-20)

Value Creation +8.1% 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

7.2%

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

-0.2%

Payout Ratio Percent of net profits distributed as dividends

101.3%

Net Margin Net profit margin generated from total operational revenue

22.3%

ROIC Return on Invested Capital

16.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

14.0x

P/B Ratio Market capitalization compared to corporate book value

2.5x

EV / EBITDA Operating multiple reflecting core operational leverage

8.8x

EV / SALES Asset pricing multiple relative to total topline revenue

3.3x

Growth Story

Revenue has demonstrated a steady upward trajectory, rising from 1.42 billion SAR in fiscal 2022 to a TTM figure of 1.70 billion SAR. Despite this top-line expansion, the company exhibits the characteristics of a mature entity with limited internal reinvestment needs. The five-year average reinvestment rate is slightly negative at -1.25%, which results in a sustainable growth rate of -0.21%. This suggests that the business is currently in a harvesting phase, where growth is driven more by market demand and pricing than by the aggressive scaling of its capital base. Strategic initiatives, such as the 141 million SAR railway project for bulk loading, are focused on operational efficiency rather than capacity expansion.

Profitability Dynamics

The company is a robust value creator, maintaining a five-year average ROIC of 16.89%, which significantly exceeds its WACC of 8.34%. This 8.55% value-creation gap is supported by strong TTM operating margins of 24.5% and net margins of 22.25%. Profitability is further bolstered by the company's 33.33% stake in Cement Product Industry Company, which contributes to the bottom line. Cash flow generation remains healthy, allowing the company to fund 113.9 million SAR in additions to property, plant, and equipment during the first nine months of 2025 while maintaining a consistent dividend policy.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.09

Cost of Equity Minimum required rate of return demanded by shareholders

9.1%

WACC Weighted average cost of total debt and equity funding

8.8%

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

6.7%

Risk Factors

Saudi Cement maintains a conservative risk profile with a beta of 0.98, indicating alignment with broader market volatility. Leverage is well-managed, with total debt of 355 million SAR primarily utilized for short-term working capital through Tawarruq facilities. This debt level is minimal relative to the 5.29 billion SAR market capitalization. Operational risks are mitigated by the 30-year renewal of essential mining licenses for limestone and gypsum, though the company remains sensitive to cyclical fluctuations in the regional construction sector and export demand, which saw a slight decline in the nine months ended September 30, 2025.

Governance Disclosures

Rating: A

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

Significance: 3/10 Tunneling

Remuneration of Key Management Personnel

Total remuneration for key management personnel for the nine-month period ended September 30, 2025, amounted to SAR 14.833 million, including short-term and post-employment benefits.

Mitigating Factors: Remuneration is disclosed in accordance with accounting standards and includes standard post-employment benefits.

Significance: 3/10 Info Asymmetry

Insurance Services from Entity with Common Directorship

The Group paid SAR 6.031 million for insurance of property, plant, and equipment to Wataniya Insurance Company, an entity linked through common directorship.

Mitigating Factors: Transactions are conducted in the ordinary course of business and approved by management.

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

In-Depth Analysis