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4145

Governance: C

OBEIKAN GLASS

Obeikan Glass Co.

25.72 SAR / Share

As of: Feb 12, 2026

14.7x P/E Ratio Trailing 12 Months

1.4x P/B Ratio Price to Book Value

3.9% Dividend Yield Annual Dividend / Share

823.04M SAR Market Cap Total Valuation

1.27 Beta Systematic Risk Index

15.8% Net Margin Net Profit / Revenue

The Story

Al Obeikan Glass Company is a specialized industrial manufacturer that has successfully navigated a period of volatility to emerge as a consolidated leader in the Saudi glass sector.

Source: Annual 2025 (2026-04-07)

Value Creation +8.8% 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

3.9%

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

+123.8%

Payout Ratio Percent of net profits distributed as dividends

57.2%

Net Margin Net profit margin generated from total operational revenue

15.8%

ROIC Return on Invested Capital

17.4%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

14.7x

P/B Ratio Market capitalization compared to corporate book value

1.4x

EV / EBITDA Operating multiple reflecting core operational leverage

8.5x

EV / SALES Asset pricing multiple relative to total topline revenue

2.8x

Growth Story

OGC's growth trajectory reflects a significant recovery phase following a challenging fiscal 2024. While revenue dipped from 393.9 million SAR in fiscal 2023 to 327.1 million SAR in fiscal 2024, the TTM performance shows a robust rebound to 354.7 million SAR. Historically, the company has maintained a conservative reinvestment rate of 7.13%, which has resulted in a modest sustainable growth rate of 1.24%. However, the recent strategic acquisition of the remaining shares in Al Obeikan AGC Glass Company in late 2025 signals a shift toward more aggressive consolidation. This move to 100% ownership of its manufacturing subsidiary, combined with its transition from the Nomu Parallel Market to the Main Market in July 2025, positions the company to leverage its expanded asset base for future capacity growth.

Profitability Dynamics

The company demonstrates strong value creation, evidenced by a five-year average ROIC of 17.37%, which comfortably exceeds its WACC of 8.59%. This 8.77% value gap highlights OGC's ability to generate returns well above its cost of capital. After a brief period of negative net income in fiscal 2024, the company has returned to profitability with a TTM net income of 56.0 million SAR and a healthy operating margin of 18.68%. Profitability is supported by efficient operations in its Yanbu branch and its integrated quarrying activities, which help insulate margins from raw material price volatility. The TTM profit margin of 15.78% underscores a lean cost structure as the company scales its consolidated operations.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.27

Cost of Equity Minimum required rate of return demanded by shareholders

9.9%

WACC Weighted average cost of total debt and equity funding

8.6%

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

25.8%

Risk Factors

OGC's risk profile is characterized by its exposure to the cyclical nature of the construction and capital goods industries, reflected in a relevered beta of 1.27. The company carries a total debt of 212.2 million SAR against a cash position of 50.8 million SAR, necessitating disciplined capital management as it integrates its recent acquisitions. Business-specific risks include the operational complexities of managing specialized manufacturing facilities and the regulatory requirements associated with its transition to the Main Market. Furthermore, the reliance on specific industrial sectors means that shifts in Saudi Arabia's infrastructure spending could impact demand for its core glass products.

Governance Disclosures

Rating: C

We track 3 key governance and oversight matters for this company in our database.

Significance: 7/10 Tunneling

Acquisition of Subsidiary Interests from Related Parties

The company acquired the remaining 81% shareholding in Al Obeikan AGC Glass Company for a total consideration of SAR 22,898,801. The transaction involved purchasing an 18.6% stake from Obeikan Investment Group Company for SAR 5,258,243 and a 12.4% stake from Saudi Advanced Industries Company for SAR 3,505,495. Following the settlement on November 25, 2025, the entity became a wholly owned subsidiary.

Mitigating Factors: The acquisition was subject to and obtained regulatory approvals from the Ministry of Investment (MISA) and the Ministry of Commerce (MOC).

Significance: 8/10 Entrenchment

Transition of Company Shares from Parallel Market (Nomu) to Main Market

The company completed the transfer of its shares from the Parallel Market (Nomu) to the Main Market on the Saudi Exchange on July 21, 2025. The company's capital is SAR 320,000,000, consisting of 32,000,000 shares. This transition followed approvals from the Saudi Tadawul Group and involved the publication of a transfer document.

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In-Depth Analysis