← Market Overview

4191

Governance: A

ABO MOATI

Abdullah Saad Mohammed Abo Moati for Bookstores Co.

40.16 SAR / Share

As of: May 28, 2026

35.6x P/E Ratio Trailing 12 Months

— P/B Ratio Price to Book Value

2.5% Dividend Yield Annual Dividend / Share

803.20M SAR Market Cap Total Valuation

0.64 Beta Systematic Risk Index

9.1% Net Margin Net Profit / Revenue

The Story

A diversified retail and wholesale distributor of office and educational supplies transitioning toward real estate income to stabilize a softening core market.

Source: Q3 2026 (2026-03-08)

Value Creation +0.0% 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

2.5%

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

+0.8%

Payout Ratio Percent of net profits distributed as dividends

88.7%

Net Margin Net profit margin generated from total operational revenue

9.1%

ROIC Return on Invested Capital

7.2%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

35.6x

P/B Ratio Market capitalization compared to corporate book value

—

EV / EBITDA Operating multiple reflecting core operational leverage

22.4x

EV / SALES Asset pricing multiple relative to total topline revenue

3.5x

Growth Story

Revenue has faced significant headwinds, contracting from 314.4 million SAR in fiscal 2023 to a TTM figure of 246.8 million SAR. This downward trajectory suggests a maturing or highly competitive core market in the stationery and office supplies sector. The company's long-term growth capacity appears constrained, evidenced by a Sustainable Growth Rate of just 0.82%. This is a direct result of a modest five-year average ROIC of 7.22% coupled with a low reinvestment rate of 11.30%. While the company continues to fund projects under construction with 2.27 million SAR in commitments, the current data reflects a business focused on footprint maintenance and asset optimization rather than aggressive top-line expansion.

Profitability Dynamics

Abo Moati operates on a razor-thin margin of value creation, with its five-year average ROIC of 7.22% barely exceeding its WACC of 7.15%. Despite the revenue decline, the company has maintained stable efficiency, posting TTM operating margins of 10.57% and profit margins of 9.13%. A strategic shift is visible in the management of assets, such as the conversion of the Shifa warehouse into an investment property to generate rental income, diversifying the cash flow stream away from pure retail. However, with a TTM Net Income of 22.5 million SAR and a substantial working capital requirement of 118.6 million SAR, the efficiency of capital conversion remains a critical factor for future profitability.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.64

Cost of Equity Minimum required rate of return demanded by shareholders

7.1%

WACC Weighted average cost of total debt and equity funding

7.2%

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

6.6%

Risk Factors

The company maintains a conservative risk profile with a re-levered beta of 0.64, indicating lower volatility relative to the broader market. Financial leverage is moderate, with a net debt-to-equity ratio of 19% and total debt of 53.0 million SAR, primarily composed of short-term Tawarruq and Murabaha facilities used to fund working capital and inventory. Key operational risks include a significant concentration in trade receivables of 48.0 million SAR and inventory of 86.8 million SAR, which are susceptible to credit losses and slow-moving stock. Additionally, the company faces currency risk from imported goods, though management actively monitors these fluctuations to protect the functional currency position.

Governance Disclosures

Rating: A

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

Significance: 2/10 Tunneling

Asset Reclassification for Employee Housing

The Suwailem Building and associated land were transferred from investment properties to property and equipment to be utilized as housing for employees.

Mitigating Factors: The transfer was formally approved by the Group’s management on March 31, 2025.

Significance: 3/10 Tunneling