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4322

Governance: C

RETAL

Retal Urban Development Co.

12.17 SAR / Share

As of: May 28, 2026

19.3x P/E Ratio Trailing 12 Months

5.7x P/B Ratio Price to Book Value

1.8% Dividend Yield Annual Dividend / Share

6.08B SAR Market Cap Total Valuation

0.80 Beta Systematic Risk Index

12.9% Net Margin Net Profit / Revenue

The Story

Retal Urban Development Company is a high-growth, capital-reinvesting real estate developer in Saudi Arabia, delivering strong returns on capital through residential and non-residential construction and off-plan sales.

Source: Q1 2026 (2026-05-12)

Value Creation +9.2% 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

1.8%

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

+24.2%

Payout Ratio Percent of net profits distributed as dividends

34.9%

Net Margin Net profit margin generated from total operational revenue

12.9%

ROIC Return on Invested Capital

16.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

19.3x

P/B Ratio Market capitalization compared to corporate book value

5.7x

EV / EBITDA Operating multiple reflecting core operational leverage

17.3x

EV / SALES Asset pricing multiple relative to total topline revenue

3.2x

Growth Story

Retal's growth trajectory is characterized by rapid expansion, with revenues rising from 1.37 billion SAR in FY 2023 to 2.06 billion SAR in FY 2024, and reaching 2.45 billion SAR in the TTM period. This expansion is fueled by an aggressive reinvestment strategy, as evidenced by a five-year average reinvestment rate of 142.90%. By channeling more than its entire operating cash flow back into development projects, land acquisitions, and working capital, Retal has achieved a high sustainable growth rate of 24.19%. This capacity is supported by its off-plan sales model, which provides early-stage funding for its extensive pipeline of residential and non-residential projects.

Profitability Dynamics

Retal demonstrates robust value creation, maintaining a five-year average Return on Invested Capital (ROIC) of 16.93%, which comfortably exceeds its Weighted Average Cost of Capital (WACC) of 7.69%. This positive spread of 9.24% highlights the company's ability to generate economic value from its development activities. Profitability remains healthy, with a TTM operating margin of 16.79% and a net profit margin of 12.87%, translating into 411.01 million SAR in operating income and 315.13 million SAR in net income. The company's profitability is underpinned by its integrated subsidiary network, which optimizes construction costs and captures margins across the development lifecycle.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.80

Cost of Equity Minimum required rate of return demanded by shareholders

7.8%

WACC Weighted average cost of total debt and equity funding

7.7%

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

28.0%

Risk Factors

Retal's aggressive growth model relies heavily on external financing, carrying a total debt of 1.71 billion SAR against a cash balance of 33.33 million SAR, resulting in an enterprise value of 7.76 billion SAR. This leverage exposes the company to interest rate fluctuations, particularly since it pays floating interest rates on its short- and medium-term loans. Beyond balance sheet debt, Retal carries significant off-balance-sheet commitments, including 811.01 million SAR in bank guarantees as of March 31, 2026, and 429.1 million SAR in outstanding installment agreements for land purchases. These obligations, combined with a relevered beta of 0.80, underscore the cyclical and capital-intensive nature of the Saudi real estate market.

Governance Disclosures

Rating: C

We track 10 key governance and oversight matters for this company in our database.

Significance: 4/10 Propping

Interest-Free Due To Related Parties

The Group has outstanding balances due to related parties that are interest-free, have no fixed repayment schedules, and are classified as current liabilities as they are repayable upon request.

Significance: 5/10 Tunneling

Interest-Free Due From Related Parties

The Group discloses balances due from related parties that are interest-free, have no fixed repayment schedules, and are classified as current assets because they are receivable upon request. No allowance for expected credit losses has been recognized against these balances.

Mitigating Factors: Management believes that all related parties have strong financial positions and sufficient funds to repay the balances upon request.

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In-Depth Analysis