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4321

Governance: A

CENOMI CENTERS

Arabian Centres Co.

16.80 SAR / Share

As of: May 28, 2026

6.3x P/E Ratio Trailing 12 Months

0.5x P/B Ratio Price to Book Value

6.7% Dividend Yield Annual Dividend / Share

7.98B SAR Market Cap Total Valuation

2.16 Beta Systematic Risk Index

55.8% Net Margin Net Profit / Revenue

The Story

A high-margin commercial real estate giant managing a massive asset base with significant leverage and a focus on long-term infrastructure expansion.

Source: Annual 2025 (2026-04-13)

Value Creation -3.1% 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

6.7%

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

+3.8%

Payout Ratio Percent of net profits distributed as dividends

41.9%

Net Margin Net profit margin generated from total operational revenue

55.8%

ROIC Return on Invested Capital

3.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

6.3x

P/B Ratio Market capitalization compared to corporate book value

0.5x

EV / EBITDA Operating multiple reflecting core operational leverage

17.4x

EV / SALES Asset pricing multiple relative to total topline revenue

10.3x

Growth Story

Revenue has shown slight fluctuations, moving from 2.34 billion SAR in fiscal 2024 to 2.29 billion SAR in the TTM period ending fiscal 2025. Despite this modest top-line contraction, the company maintains an aggressive reinvestment rate of 109.36% based on a five-year average, indicating that it is plowing more than its entire operating profit back into the business for expansion and asset development. This strategy, coupled with a five-year average ROIC of 3.48%, results in a sustainable growth rate of 3.81%. The company's focus remains on its core licensed activities of purchasing land and developing commercial buildings, as evidenced by the TTM capital expenditure of 1.57 billion SAR.

Profitability Dynamics

Cenomi Centers operates with exceptionally high margins, boasting an operating margin of 57.82% and a net profit margin of 55.77% for the TTM period. However, the profitability story is nuanced by capital efficiency; the five-year average ROIC of 3.48% trails the WACC of 6.57%, resulting in a negative value creation gap of 3.09%. While the business generates significant NOPAT of 1.28 billion SAR, the sheer scale of the capital invested in its real estate portfolio—with total assets reaching 36.89 billion SAR—means that returns on a per-riyal basis are currently below the cost of capital.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

2.16

Cost of Equity Minimum required rate of return demanded by shareholders

13.9%

WACC Weighted average cost of total debt and equity funding

6.6%

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

247.9%

Risk Factors

The risk profile is characterized by significant financial leverage and high market sensitivity. With total debt of 19.78 billion SAR against a market capitalization of 8.22 billion SAR, the company carries a heavy debt load relative to its equity value. This leverage contributes to a high relevered beta of 2.09, suggesting the stock is twice as volatile as the broader market. Furthermore, the cost of equity stands at 13.58%, reflecting the risk premium associated with this level of debt and the cyclical nature of the commercial real estate sector. Business-specific risks include the concentration of control under the Alhokair family and the ongoing capital requirements for large-scale developments.

Governance Disclosures

Rating: A

We track 1 key governance and oversight matters for this company in our database.

Significance: 6/10 Entrenchment

Concentrated Ownership by Ultimate Controlling Shareholders

The company identifies Fawaz Abdulaziz Alhokair, Salman Abdulaziz Alhokair, and Abdulmajeed Abdulaziz Alhokair as the joint ultimate controlling shareholders of the entity.

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In-Depth Analysis