Risk factor
Resilient to price shocks
Profitability factor
Slightly undervalued vs peers
About
Al Yamamah Steel Industries Company, established in 1989 and headquartered in Riyadh, Kingdom of Saudi Arabia, is a key producer and supplier of metal goods. The firm caters to the construction, electrical, and telecommunications industries, operating distinctively through its Construction and Electricity divisions. Its broad product catalog features items such as steel hollow sections, various lighting and transmission poles, high masts, overhead transmission line towers, and telecom towers. The company also furnishes metal sheets, steel straps and clips, and structural space frames. Further expanding its offerings, Al Yamamah provides steel welded tubes, reinforcing steel bars, and galvanized poles for illumination and power distribution. Moreover, the company extends its expertise to include the design, fabrication, and galvanization of telecommunication towers, transmission towers, and electrical poles.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITD.