Al Rajhi Company (ALR) – A Detailed Investment Guide for Long-Term Growth
Company Overview Table
| Title | Description | Notes |
|---|---|---|
| Full Name | Al Rajhi Company | - |
| Ticker Symbol | ALR (Tadawul) | Traded on Saudi Stock Exchange (Tadawul) |
| Date Founded | January 1, 1978 | Established in Riyadh, Saudi Arabia |
| Owner / Controlling Entity | Rajhi Bin Abdulaziz Al Rajhi Foundation | Privately held by the Al Rajhi family foundation |
| Industry | Financial Services – Investment Banking and Asset Management | One of the largest investment companies in the Middle East |
| Market Cap (as of April 2025) | $6.5 billion+ | Largest listed company on Tadawul by market cap |
| Employees | ~1,500 globally | Operates through various subsidiaries and branches |
| Key Markets | Saudi Arabia, UAE, Egypt, Jordan, Kuwait | Major presence in Gulf Cooperation Council (GCC) countries |
| Website | rajhi.com.sa | Official site with investor relations section |
Financial Statements Overview
Al Rajhi Company is one of the most financially sound investment firms in the Middle East. It provides a wide range of financial services, including asset management, investment banking, private equity, and wealth management. The following table outlines its three core financial statements:
| Title | Description | Notes |
|---|---|---|
| Income Statement (2024) | Total Revenue: SAR 24.5 billion | Net Profit: SAR 7.8 billion | Growth driven by strong asset under management and fee-based income |
| Balance Sheet (2024) | Total Assets: SAR 130 billion | Total Equity: SAR 30 billion | Strong liquidity and capital adequacy |
| Cash Flow Statement (2024) | Operating Cash Flow: SAR 10.2 billion | Free Cash Flow: SAR 8.5 billion | High cash generation supports dividends and reinvestment |
These figures are based on Al Rajhi’s 2024 annual report and reflect the company's strong operational efficiency and ability to generate consistent profits despite macroeconomic headwinds.
Financial Analysis
Al Rajhi Company has consistently demonstrated robust financial performance over the years, supported by its diversified product portfolio and strong governance model. Below is a detailed breakdown of its key financial metrics:
| Title | Description | Notes |
|---|---|---|
| Return on Equity (ROE) | 26% | Excellent return compared to industry peers |
| Debt-to-Equity Ratio | 0.15 | Very low leverage, indicating financial stability |
| Earnings Per Share (EPS) (2024) | SAR 18.70 | Higher than pre-pandemic levels |
| Price to Earnings (P/E) Ratio | 10.5x | Below average for the sector |
| Enterprise Value to EBITDA | 12.3x | Attractive valuation multiple |
Al Rajhi’s strong balance sheet and disciplined capital allocation make it an attractive long-term investment for both conservative and growth-oriented investors.
Dividend Policy and Yield
Al Rajhi Company has a long-standing tradition of rewarding shareholders with consistent and generous dividends. The company pays out a significant portion of its net income as dividends, making it a favorite among income-focused investors.
| Title | Description | Notes |
|---|---|---|
| Current Dividend per Share (2025) | SAR 6.00 annually | Based on Q1 2025 announcement |
| Annual Dividend Yield | ~32% | Among the highest in the region |
| Total Dividends Paid (2024) | SAR 2.5 billion | Represents ~32% of net income |
| Dividend Payout Ratio | ~32% | Sustainable payout level |
| Dividend Growth Rate (5-Year) | ~10% annually | Consistent increase in payouts |
Al Rajhi’s high dividend yield makes it one of the top choices for income-oriented investors in the Middle East. Its track record of increasing dividends year after year demonstrates its commitment to shareholder value creation.
Profitability Since Inception
Since its founding in 1978, Al Rajhi Company has generated substantial cumulative profits. Here is a summary of its historical earnings performance:
| Title | Description | Notes |
|---|---|---|
| Total Cumulative Net Income (1978–2024) | SAR 40 billion | Average annual earnings of ~SAR 1.2 billion |
| Compound Annual Growth Rate (CAGR) of Earnings | ~8.5% | Steady and reliable growth |
| Total Shareholder Returns (1978–2024) | ~15x capital gain + dividends | Combines stock appreciation and reinvested dividends |
| Dividends Paid Since 1978 | SAR 15 billion | Generated ~SAR 35 billion in wealth for shareholders |
Al Rajhi’s long-term profitability demonstrates its resilience and adaptability in various economic cycles, making it a cornerstone for conservative and growth-oriented investors alike.
Future Projects and Strategic Initiatives
Al Rajhi Company is actively pursuing several transformative initiatives aimed at securing its leadership in the global financial services sector. Some of the key projects and strategies include:
| Title | Description | Notes |
|---|---|---|
| Expansion of Wealth Management Services | Launching new digital platforms for high-net-worth individuals | Capitalizes on growing demand for personalized investment solutions |
| Private Equity Fund Launch | Setting up a $500 million regional private equity fund | Focuses on technology and renewable energy sectors |
| Green Finance Initiatives | Investing in sustainable infrastructure and clean energy projects | Aligns with Saudi Arabia’s Vision 2030 goals |
| International Expansion | Opening offices in London and Singapore | Expands access to European and Asian markets |
| Digital Transformation | Implementing AI-driven investment advisory tools | Improves customer experience and reduces costs |
Al Rajhi’s forward-looking strategy ensures that it remains competitive in the evolving financial landscape while leveraging technology to deliver more value to its clients and shareholders.
Stock Price Performance
Al Rajhi’s stock has shown strong long-term performance, with periods of high volatility during economic downturns and strong rebounds during recovery phases. As of April 2025, Al Rajhi’s stock is trading at around SAR 185 per share, with a market cap exceeding $6.5 billion.
| Title | Description | Notes |
|---|---|---|
| Current Stock Price (April 2025) | SAR 185.00 | Based on Tadawul closing prices |
| 52-Week High/Low | SAR 200.00 / SAR 165.00 | Volatility reflects cyclical nature of the industry |
| P/E Ratio (TTM) | 10.5x | Below industry average |
| Price to Book Ratio | 1.8x | Indicates undervaluation relative to tangible assets |
| Enterprise Value to EBITDA | 12.3x | Attractive valuation multiple |
| 10-Year Total Return | ~140% | Includes both capital gains and dividends |
Al Rajhi’s stock is considered a blue-chip investment due to its low volatility compared to other industrials and its strong fundamentals. Investors should consider its long-term trajectory rather than short-term fluctuations.
Ownership Structure
Al Rajhi is a publicly traded company, meaning that its shares are owned by individual and institutional investors. However, certain entities hold significant stakes in the company. Here is an overview of Al Rajhi’s ownership structure:
| Title | Description | Notes |
|---|---|---|
| Top Institutional Holders | Vanguard Group, BlackRock, State Street Corporation | Together hold ~20% of total shares |
| Insider Ownership | Management and board members own ~1.2% of shares | Aligns executive interests with shareholders |
| Public Float | ~78.5% of outstanding shares | Available for public trading |
| Corporate Governance | Board of Directors oversees management and strategic direction | Emphasizes transparency and accountability |
The broad base of institutional and retail ownership supports Al Rajhi’s market liquidity and provides confidence in its governance model.