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6019

Governance: D

ALMASAR ALSHAMIL

Al Masar Al Shamil Education Co.

20.63 SAR / Share

As of: May 28, 2026

12.2x P/E Ratio Trailing 12 Months

1.6x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

2.11B SAR Market Cap Total Valuation

0.90 Beta Systematic Risk Index

30.5% Net Margin Net Profit / Revenue

The Story

Al Masar Al Shamil Education Company is a newly listed Saudi public joint stock company delivering tertiary and special needs education across the GCC with robust operating margins and a positive spread over its cost of capital.

Source: Q1 2026 (2026-05-17)

Value Creation +2.2% 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

—

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

+0.5%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

30.5%

ROIC Return on Invested Capital

9.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

12.2x

P/B Ratio Market capitalization compared to corporate book value

1.6x

EV / EBITDA Operating multiple reflecting core operational leverage

11.8x

EV / SALES Asset pricing multiple relative to total topline revenue

4.0x

Growth Story

Anchored in the metaphor of planting seeds in fertile soil, the company's growth story is driven by regional expansion and strategic acquisitions. Revenue has expanded consistently, rising from SAR 342,557,000 in FY2023 to SAR 437,065,000 in FY2024, and reaching SAR 533,867,000 in FY2025, with TTM revenue currently at SAR 567,729,000. Despite this strong top-line trajectory, the company's long-term self-funded growth capacity is constrained. With a 5-year average reinvestment rate of 5.78% and a 5-year average ROIC of 9.11%, the resulting Sustainable Growth Rate is modest at 0.53%. This indicates that while external expansions—such as NEMA's acquisition of Biz Group—drive near-term revenue, long-term organic growth will require a higher rate of capital reinvestment.

Profitability Dynamics

Operating like a well-calibrated engine, the company demonstrates strong profitability and value creation. The TTM operating margin stands at 23.78% based on an EBIT of SAR 135,034,000, while the TTM profit margin reaches 30.48% with a Net Income of SAR 173,068,000. Value creation is confirmed by a positive spread, as the 5-year average ROIC of 9.11% exceeds the WACC of 6.95%, yielding an economic gap of 2.16%. Capital expenditure for the TTM period is SAR 56,461,000. However, a complete assessment of cash flow generation is restricted by the absence of historical Free Cash Flow to Firm (FCFF) data in the primary financial results.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.90

Cost of Equity Minimum required rate of return demanded by shareholders

8.3%

WACC Weighted average cost of total debt and equity funding

7.0%

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

25.5%

Risk Factors

Navigating changing tides, the company manages a combination of financial leverage and regional operational risks. The latest total debt stands at SAR 537,843,000 against a cash balance of SAR 366,013,000. While debt-to-equity and interest coverage ratios are not available, the company utilizes Shariah-compliant bank facilities to fund its expansion, with SAR 16.8 million and SAR 41.7 million drawn down for projects in Saudi Arabia. Business-specific risks include active capital commitments of SAR 27,195,000 and geopolitical uncertainties in the Middle East that could impact regional operations. Additionally, the introduction of the UAE Corporate Tax has created new tax dynamics, including a deferred tax liability of SAR 51,051,000 recognized in relation to purchase price allocations.

Governance Disclosures

Rating: D

We track 11 key governance and oversight matters for this company in our database.

Significance: 4/10 Asset Risk

Share of Associate's Bank Guarantees

The Group disclosed its share of bank guarantees of an associate entity, NEMA Holding Company LLC, amounting to SAR 34,405 thousand as of 31 March 2026, compared to SAR 35,722 thousand as of 31 December 2025.

Significance: 3/10 Tunneling

Management Fee Paid to Key Management Personnel

The Group recorded a management fee expense of SAR 1,646 thousand for the three-month period ended 31 March 2026, compared to SAR 872 thousand in the prior period. This expense represents the Group's share of costs for services provided by a key management member of the Company to an associate entity.

Mitigating Factors: Pricing policies and terms of these transactions are approved by the Group’s management.

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In-Depth Analysis