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4200

Governance: C

ALDREES

Aldrees Petroleum and Transport Services Co.

114.90 SAR / Share

As of: May 28, 2026

26.7x P/E Ratio Trailing 12 Months

7.2x P/B Ratio Price to Book Value

1.7% Dividend Yield Annual Dividend / Share

11.49B SAR Market Cap Total Valuation

0.85 Beta Systematic Risk Index

1.6% Net Margin Net Profit / Revenue

The Story

A high-volume essential services provider scaling rapidly through an expansive network of fuel stations and specialized logistics.

Source: Q1 2026 (2026-04-28)

Value Creation +1.5% 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

1.7%

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

-7.8%

Payout Ratio Percent of net profits distributed as dividends

46.4%

Net Margin Net profit margin generated from total operational revenue

1.6%

ROIC Return on Invested Capital

8.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

26.7x

P/B Ratio Market capitalization compared to corporate book value

7.2x

EV / EBITDA Operating multiple reflecting core operational leverage

13.1x

EV / SALES Asset pricing multiple relative to total topline revenue

0.6x

Growth Story

Aldrees has demonstrated aggressive top-line expansion, with revenue surging from 14.8 billion SAR in fiscal 2023 to 26.8 billion SAR on a trailing twelve-month (TTM) basis. This growth is fueled by a continuous expansion of its station network, evidenced by 151.5 million SAR in capital commitments for new projects. While the company maintains a robust 5-year average ROIC of 8.6%, its sustainable growth rate is mathematically constrained by a negative reinvestment rate of -90.5%. This indicates that the company is currently prioritizing the distribution of cash to shareholders over the retention of earnings, relying on its massive scale and external financing to fund its physical footprint expansion.

Profitability Dynamics

Operating in the high-volume, low-margin fuel retail sector, Aldrees maintains a lean operating margin of 2.25% and a profit margin of 1.61% TTM. Despite these thin margins, the company successfully creates value by maintaining an ROIC that exceeds its WACC of 7.09% by approximately 151 basis points. Beyond core operations, Aldrees has diversified its income streams through a 670.1 million SAR investment portfolio in long-term Sukuks, which generated 9.3 million SAR in profit income during the first quarter of 2026. This strategy provides a stable yield buffer to the volatile nature of retail fuel margins.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.85

Cost of Equity Minimum required rate of return demanded by shareholders

8.0%

WACC Weighted average cost of total debt and equity funding

7.1%

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

42.3%

Risk Factors

The company's risk profile is characterized by significant lease-related leverage, with 4.45 billion SAR in Right-of-Use assets reflecting long-term commitments to station sites. Total debt stands at 4.86 billion SAR, and the company must navigate regional geopolitical instabilities that management monitors closely. Additionally, the business faces credit risk within its 771.1 million SAR trade receivable balance, currently mitigated by a 19.5 million SAR allowance for expected credit losses. A recent restatement of government fee accounting also highlights the impact of evolving regulatory clarifications on retained earnings.

Governance Disclosures

Rating: C

We track 9 key governance and oversight matters for this company in our database.

Significance: 3/10 Entrenchment

Approval of Annual Board Remuneration

The Ordinary General Assembly approved a total disbursement of SAR 6,000,000 as remuneration for all members of the Board of Directors for the fiscal year 2025, alongside the approval of SAR 200,000,000 in cash dividends.

Mitigating Factors: The remuneration was approved by the Ordinary General Assembly (OGA).

Significance: 4/10 Entrenchment

Key Management and Board Compensation

For the three-month period ended March 31, 2026, key management personnel received salaries and benefits totaling SAR 8,919,668 and terminal benefits of SAR 335,012. Board of Directors' remunerations and committee fees for the period amounted to SAR 1,780,000.

Mitigating Factors: Compensation is disclosed and categorized by nature (salaries vs. board fees).

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

In-Depth Analysis