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4162

Governance: C

ALMUNAJEM

Almunajem Foods Co.

62.55 SAR / Share

As of: May 28, 2026

23.0x P/E Ratio Trailing 12 Months

3.6x P/B Ratio Price to Book Value

4.8% Dividend Yield Annual Dividend / Share

3.75B SAR Market Cap Total Valuation

0.55 Beta Systematic Risk Index

4.9% Net Margin Net Profit / Revenue

The Story

A high-return food distribution powerhouse transitioning from a pure trading model to an integrated producer through strategic equity stakes and infrastructure expansion.

Source: Q3 2025 (2025-12-31)

Value Creation +22.3% 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

4.8%

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

-3.1%

Payout Ratio Percent of net profits distributed as dividends

110.4%

Net Margin Net profit margin generated from total operational revenue

4.9%

ROIC Return on Invested Capital

29.3%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

23.0x

P/B Ratio Market capitalization compared to corporate book value

3.6x

EV / EBITDA Operating multiple reflecting core operational leverage

17.3x

EV / SALES Asset pricing multiple relative to total topline revenue

1.2x

Growth Story

Revenue has stabilized at approximately 3.33 billion SAR on a TTM basis, following a period of steady expansion from 2.98 billion SAR in fiscal 2022. While the 5-year average reinvestment rate is negative at -10.41%, suggesting a historical focus on capital distribution over internal compounding, the company is currently pivoting toward capacity building. This shift is evidenced by the development of a new meat factory in Jeddah, where construction-in-progress assets surged from 3.9 million SAR at the end of 2024 to 42.9 million SAR by September 30, 2025. Furthermore, the strategic acquisition of a 40% stake in Balady Poultry Trading Company signals a move to secure supply chains, even as the current sustainable growth rate remains mathematically constrained by historical payout patterns.

Profitability Dynamics

The company is a premier value creator, boasting a 5-year average ROIC of 29.35% that significantly exceeds its 8.06% WACC, resulting in a substantial value creation gap of 21.29%. Although the TTM operating margin of 5.29% reflects a tightening from the 10.4% levels seen in fiscal 2022, the business remains highly cash-generative. Profitability is supported by efficient working capital management, including the use of Sharia-compliant supplier finance arrangements totaling 214.8 million SAR. These mechanisms allow the company to maintain liquidity and support a consistent dividend policy, such as the 60 million SAR distribution approved for the first half of 2025, despite the margin compression observed in the TTM period.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.55

Cost of Equity Minimum required rate of return demanded by shareholders

6.6%

WACC Weighted average cost of total debt and equity funding

7.0%

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

3.4%

Risk Factors

Almunajem maintains a defensive market position with a relevered beta of 0.79, indicating lower volatility than the broader Tadawul index. Financial risk is primarily tied to short-term Murabaha loans, which rose to 280 million SAR by September 30, 2025, to fund working capital and acquisitions. Operational risks are centered on foreign exchange exposure, which led to a 4.5 million SAR loss in the first nine months of 2025, and significant related-party dependencies. Specifically, purchases from France Poultry, a subsidiary of the ultimate parent, reached 646.4 million SAR during the same period, highlighting a concentrated supply chain that could be sensitive to parent-level strategic shifts.

Governance Disclosures

Rating: C

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

Significance: 2/10 Tunneling

Transaction with Entity Linked to Board Member

The Group disclosed expenses of SAR 77,500 paid to Four Steps International, an entity owned by a member of the Board of Directors.

Mitigating Factors: Pricing policies and terms are approved by the Group’s management.

Significance: 3/10 Tunneling

Board of Directors and Key Management Compensation

Total compensation for key management personnel reached SAR 8,749,437 for the nine-month period, including SAR 1.5 million specifically for Board of Directors' remuneration.

Mitigating Factors: Compensation is provided to members having authority and responsibility for planning, directing, and controlling the activities of the Group.

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In-Depth Analysis