SAL

SAL Saudi Logistics Services Co.

170.70 SAR / Share

As of: May 28, 2026

19.5x P/E Ratio Trailing 12 Months

8.4x P/B Ratio Price to Book Value

2.7% Dividend Yield Annual Dividend / Share

13.66B SAR Market Cap Total Valuation

1.07 Beta Systematic Risk Index

39.6% Net Margin Net Profit / Revenue

The Story

SAL is a highly profitable logistics and ground handling champion in Saudi Arabia, combining robust double-digit operating margins with exceptional returns on capital to power the nation's supply chain.

Source: Q1 2026 (2026-05-05)

Value Creation +26.1% 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

2.7%

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

+3.9%

Payout Ratio Percent of net profits distributed as dividends

53.0%

Net Margin Net profit margin generated from total operational revenue

39.6%

ROIC Return on Invested Capital

34.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

19.5x

P/B Ratio Market capitalization compared to corporate book value

8.4x

EV / EBITDA Operating multiple reflecting core operational leverage

18.5x

EV / SALES Asset pricing multiple relative to total topline revenue

8.3x

Growth Story

SAL's revenue has expanded steadily, rising from 1.46 billion SAR in FY 2023 to 1.63 billion SAR in FY 2024, and reaching 1.71 billion SAR in FY 2025, with TTM revenue climbing further to 1.77 billion SAR. This growth is supported by a 5-year average reinvestment rate of 11.31%. Combined with an exceptional 5-year average Return on Invested Capital (ROIC) of 34.06%, the company possesses a Sustainable Growth Rate of 3.85%. To expand its long-term capacity, SAL is actively investing in cargo terminal projects under construction (with capital work-in-progress expected to complete in 2027) and has signed an agreement to acquire Aviapartner Lige SA in Belgium for approximately 123 million SAR, signaling a strategic push into international markets.

Profitability Dynamics

SAL exhibits outstanding profitability, characterized by a TTM operating margin of 41.42% and a profit margin of 39.62%. The company's value creation is underscored by a massive spread between its 5-year average ROIC of 34.06% and its WACC of 8.00%, yielding a positive value-creation gap of 26.05%. This high-return profile is driven by its core ground handling segment, which generated 187.55 million SAR in operating profit for Q1 2026, offsetting minor early-stage losses in its logistics and newly established SAL Zones segments. The business continues to generate strong cash flows, supported by a NOPAT of 694.68 million SAR on a TTM basis, which easily funds its ongoing capital expenditures.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.07

Cost of Equity Minimum required rate of return demanded by shareholders

9.0%

WACC Weighted average cost of total debt and equity funding

8.0%

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

19.2%

Risk Factors

While historically maintaining a conservative balance sheet, SAL's leverage profile shifted significantly in early 2026. Following a 1.00 billion SAR private Sukuk issuance in January 2026, the company's net debt-to-equity ratio rose from 34.83% at the end of FY 2025 to 102.68% as of March 31, 2026. Total debt stands at 2.62 billion SAR, balanced by a substantial cash reserve of 1.55 billion SAR. Beyond financial leverage, SAL faces credit risks, with its five largest customers accounting for 69% of outstanding trade receivables, and government-related entities representing 73% of the total. Additionally, the company has resolved outstanding Zakat disputes for 2020 and 2021, making adequate provisions for the final TVDAC rulings, while managing capital commitments of 867.3 million SAR primarily for cargo terminal construction.