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3090

Governance: B

TCC

Tabuk Cement Co.

8.41 SAR / Share

As of: Mar 26, 2026

20.3x P/E Ratio Trailing 12 Months

0.6x P/B Ratio Price to Book Value

5.9% Dividend Yield Annual Dividend / Share

756.90M SAR Market Cap Total Valuation

1.06 Beta Systematic Risk Index

13.0% Net Margin Net Profit / Revenue

The Story

A specialized cement producer strategically positioned near Saudi Arabia's mega-projects, currently navigating operational constraints and land concession uncertainties.

Source: Annual 2025 (2026-04-27)

Value Creation -6.4% 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

5.9%

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

-0.5%

Payout Ratio Percent of net profits distributed as dividends

120.7%

Net Margin Net profit margin generated from total operational revenue

13.0%

ROIC Return on Invested Capital

2.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

20.3x

P/B Ratio Market capitalization compared to corporate book value

0.6x

EV / EBITDA Operating multiple reflecting core operational leverage

10.3x

EV / SALES Asset pricing multiple relative to total topline revenue

2.6x

Growth Story

TCC's growth trajectory reflects a dormant engine waiting for a catalyst. Revenue for the twelve months ended December 31, 2025, reached 287 million SAR, a contraction from the 343 million SAR recorded in fiscal 2024. The company's long-term growth capacity is currently restricted, evidenced by a negative sustainable growth rate of -0.53% and a five-year average reinvestment rate of -20.68%. This negative reinvestment indicates that the firm is not currently deploying capital into new productive assets, partly due to the fact that its first production line has remained non-operational for seven years because of fuel allocation constraints. While the company has secured a right-of-access agreement with NEOM to utilize its land, its core industrial growth remains tethered to the resolution of these energy supply limits.

Profitability Dynamics

The profitability story is one of a leaky reservoir where returns are not yet sufficient to fill the cost of capital. TCC's five-year average ROIC of 2.55% sits well below its WACC of 8.96%, resulting in a value destruction gap of -6.41%. While the company maintains a TTM profit margin of 12.99%, a significant portion of this bottom line is supported by other income, such as the 16.1 million SAR in rental fees from land access. Operating margins have softened to 9.75% TTM compared to 17.6% in fiscal 2024. Despite these pressures, the company continues to generate enough cash to sustain dividend distributions, though the underlying return on industrial assets indicates that the business is not currently creating economic value above its cost of financing.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.06

Cost of Equity Minimum required rate of return demanded by shareholders

9.0%

WACC Weighted average cost of total debt and equity funding

9.0%

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

4.6%

Risk Factors

TCC's risk profile is characterized by shifting sands, primarily due to the upcoming expiration of its land concession agreement in September 2028. While management expects a renewal, the inherent uncertainty of this process represents a significant operational risk. Financially, the company is in a stable but delicate position; it holds 34.7 million SAR in debt against 31.9 million SAR in cash, but it has recently navigated covenant breaches that required active communication with lenders. Furthermore, the business faces high concentration risk, with its top five customers accounting for 77% of total revenue. A beta of 1.06 reflects a market sensitivity that is slightly higher than the average, driven by the cyclical nature of the regional construction sector and the geopolitical uncertainties noted in recent disclosures.

Governance Disclosures

Rating: B

We track 8 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Key Management and Board Remuneration

During the 2025 fiscal year, the company paid SAR 2.62 million in salaries and benefits to key management personnel and SAR 2.75 million in remunerations and allowances to members of the Board of Directors.

Mitigating Factors: Remuneration is disclosed in accordance with regulatory requirements for related party transactions.

Significance: 3/10 Tunneling

Board and Key Management Remuneration

The company disclosed payments to key management personnel totaling SR 1.17 million for salaries and benefits, and Board of Directors remunerations totaling SR 1.32 million.

Mitigating Factors: Transactions are disclosed in accordance with accounting standards for related party transparency.

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

In-Depth Analysis