MOUWASAT
Mouwasat Medical Services Co.
As of: May 28, 2026
Company Profile
Mouwasat Medical Services Company is a Saudi Joint Stock Company engaged in the acquisition, management, operation, and maintenance of hospitals, medical centers, drug stores, pharmacies, and the wholesale of medical equipment and drugs. The Group operates through multiple branches in Dammam, Khobar, Jubail, Madinah, Riyadh, and Yanbu, and holds 51% interests in subsidiaries including Eastern Medical Services Company and Jeddah Doctors Company. Revenue is primarily generated from inpatient and outpatient medical services and the sale of pharmaceutical goods.
The Story
Mouwasat combines high-efficiency medical operations with a disciplined expansion strategy, consistently generating returns on capital that significantly exceed its cost of funding.
Source: Q2 2025 (2025-09-27)
Performance & Distributions
Market Pricing Multiples
Growth Story
Mouwasat has demonstrated a consistent upward trajectory, with TTM revenue reaching 3.03 billion SAR, a significant increase from the 1.80 billion SAR reported in fiscal 2020. While the five-year average sustainable growth rate stands at 2.64%, this figure reflects a historical reinvestment rate of 12.06% that is currently being surpassed by a major expansion phase. The company is aggressively building future capacity, evidenced by 723.17 million SAR in construction work-in-progress as of June 30, 2025. This includes new hospital projects in Yanbu and Jubail, as well as clinic expansions in Khobar, suggesting that the company is prioritizing physical footprint growth to capture long-term demand in the Kingdom's healthcare sector.
Profitability Dynamics
The company is a prolific value creator, maintaining a five-year average ROIC of 21.90%, which stands in stark contrast to its WACC of 7.46%. This 14.44% value creation gap highlights the efficiency of its medical service model. Profitability remains robust with a TTM operating margin of 25.42% and a net profit margin of 24.23%. In the first half of 2025, the medical services segment produced a gross profit of 628.9 million SAR, dwarfing the 74.7 million SAR from pharmaceuticals. Despite heavy TTM capital expenditures of 514.4 million SAR, the business continues to generate strong internal cash flows, supporting a 400 million SAR dividend proposal for the 2024 fiscal year.
Risk & Capital Structure
Risk Factors
Mouwasat maintains a controlled risk profile with a relevered beta of 0.82, reflecting the defensive nature of the healthcare industry. Its debt structure is particularly advantageous; of the 954.1 million SAR in total debt, a portion consists of interest-free loans from the Ministry of Finance, contributing to a low after-tax cost of debt of 2.62%. However, the company faces ongoing Zakat assessments, with a 5.2 million SAR liability currently under appeal for the 2019-2020 period. Operational risks are primarily centered on the execution and timely commissioning of its large-scale construction projects, which are essential to maintaining its growth momentum.
Governance Disclosures
We track 4 key governance and oversight matters for this company in our database.
Key Management and Board Remuneration
Total compensation for key management personnel and directors amounted to SR 19.26 million for the six-month period, including SR 3.8 million in Board of Directors' fees.
Related Party Transactions with Shareholder-Owned Entities
The Group transacted with Al-Mouwasat International Company (owned by a shareholder) for purchases of SR 16.4 million and rent of SR 2.97 million. Additionally, SR 22.54 million was paid to AdVision Media Solution (an entity with significant influence) for advertisement services during the six-month period.
Research Report
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